SHUKRA MEDTECH LIMITED

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹69.00+₹2.21 (+3.31%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of SHUKRA MEDTECH LIMITED — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

SHUKRA MEDTECH LIMITED engages in the manufacturing, marketing, and export of pharmaceutical formulations in India and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Annual revenue₹57 Cr

How does it make money?

Turns over ₹57 Cr a year. Of every ₹100 of sales, about ₹39 reaches shareholders as profit, with ₹59 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 31.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE14.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -4% while net margin moved +419% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-4%

Margin effect+419%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 88.5x is demanding — it needs sustained high growth to justify
✗ P/B of 32.95x is a steep premium to book

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

33/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

88.5x

Sector Median

33.3x

median of 4 sector peers

⚠️Against its sector it trades 165% above the peer median of 33.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

33.3x median of 4 peers · +165%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

91.6x

PEG

1.24

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 10.4% to 58.7% over 3 years.
Return on equity is rising
ROE has improved from 17.4% to 24.6%.
Return on capital is rising
ROCE has improved from 14.5% to 31.7%.
High return on capital employed
ROCE of 31.7% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 5.59x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 340% against revenue up -4% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹12 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 508% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 31.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 10.4% to 58.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 5.59x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 165% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 57%✓ 58.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹12 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 29%✓ 31.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹3,053 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

88.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

32.95x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.78

Profitable

Profitable on a per-share basis

ROE

24.6%

Strong

Strong capital efficiency

ROCE

31.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.59x

High

High leverage

Revenue Growth (YoY)

336.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1400.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.01%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

79.1%

Good

Healthy core-business profitability

Net Margin

45.4%

Good

Strong bottom-line conversion

Current Ratio

3.63

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.58

Defensive

Steadier than the market

52W Range Position

82%

Mid-range

Technical Snapshot

RSI (14)

74.5

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹59 Cr	₹75 Cr	₹33 Cr	₹57 Cr	-1.2%
EBITDA	₹6 Cr	₹22 Cr	₹17 Cr	₹33 Cr	+76.1%
EBITDA Margin	10.4%	29.4%	52.0%	58.7%	—
PAT (Net Profit)	₹4 Cr	₹19 Cr	₹10 Cr	₹22 Cr	+71.1%
EPS	₹0.14	₹0.42	₹0.22	₹0.5	+54.2%
ROE	17.4%	32.2%	15.2%	24.6%	—
ROCE	14.5%	31.7%	20.0%	31.7%	—
Total Debt	₹5 Cr	₹3 Cr	₹4 Cr	₹5 Cr	-0.4%
Free Cash Flow	-₹1 Cr	-₹7 Cr	₹5 Cr	-₹12 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.2% a year).

🟢 EBITDA has grown at 76.1% a year over 3 years.

🟢 EBITDA Margin has risen from 10.4% to 58.7% over 3 years (+48.4 pts).

🟢 PAT (Net Profit) has grown at 71.1% a year over 3 years.

🟢 EPS has grown at 54.2% a year over 3 years.

🟢 ROE has risen from 17.4% to 24.6% over 3 years (+7.1 pts).

🟢 ROCE has risen from 14.5% to 31.7% over 3 years (+17.2 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.4% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹117 Cr

Total Liabilities

₹28 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹16 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

88.7%

Corporate Actions

Dividend Rate

₹0.01

Ex-Dividend Date

21 Sept 2026

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

1 mixed5 general

SHUKRA MEDTECH (BSE:524632) - Stock Analysis

Simply Wall Street, 18 Oct

SHUKRA MEDTECH (NSEI:SHUKRAPHAR) - Stock Analysis

Simply Wall Street, 18 Oct

Shukra Pharma Stock Explosion: Shares Rocket 11% As Investors Rush In

Dalal Street Investment Journal, 05 Oct

Shukra Pharmaceuticals files notice for September 28 AGM

scanx.trade, 07 Oct

Shukra Pharma shares surge 17,600% in five years as investors track medtech expansion

Business Today, 18 MarCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Venus MedTech - Financial Details

Crunchbase, 08 Feb

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Profitability

MiddlingFinancial Health · Growth

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 4 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑