Sunrest Lifescience Limited

Sector n/a · NSE

₹61.65₹0.00 (0.00%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

The 60-second version of Sunrest Lifescience Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

How does it make money?

Turns over ₹71 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation.

EBITDA margin14.7%

Net margin5.8%

What is its competitive advantage?Some evidence

ROCE of 26.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE26.8%

ROE20.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +195% while net margin moved -32% 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+195%

Margin effect-32%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

88/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

4.5x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 12.9% to 14.7% over 3 years.
High return on capital employed
ROCE of 26.8% 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 Attention5

Debt is rising
Total debt is up 715% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 65.6% to 20.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 54.8% to 26.8% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 333% against revenue growth of 195% — stock may not be moving.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 715% over 3 years, from ₹2 Cr to ₹17 Cr.
🔴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 333% against revenue up 195% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹8 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.8% 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 12.9% to 14.7%. 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?

Returns on shareholder capital are falling
ROE has dropped from 65.6% to 20.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1Revenue growth stays above 33% a year✓ 43.4% CAGR
Latest reported year was 112.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 14.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 26.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹32 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

20.2%

Strong

Strong capital efficiency

ROCE

26.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.85x

Moderate

Moderate leverage

Revenue Growth (YoY)

112.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

105.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹8 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹61.65

Gross Margin

37.5%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

2.12

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

37.0 / 38.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

50.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹24 Cr	₹29 Cr	₹33 Cr	₹71 Cr	+43.4%
EBITDA	₹3 Cr	₹1 Cr	₹3 Cr	₹10 Cr	+49.7%
EBITDA Margin	12.9%	3.1%	9.0%	14.7%	—
PAT (Net Profit)	₹2 Cr	₹0 Cr	₹2 Cr	₹4 Cr	+26.3%
EPS	₹3.96	₹0.57	₹3.62	—	—
ROE	65.6%	1.6%	12.3%	20.2%	—
ROCE	54.8%	4.6%	10.5%	26.8%	—
Total Debt	₹2 Cr	₹6 Cr	₹12 Cr	₹17 Cr	+101.2%
Free Cash Flow	₹1 Cr	-₹15 Cr	₹2 Cr	-₹8 Cr	—

🟢 Revenue has grown at 43.4% a year over 3 years.

🟢 EBITDA has grown at 49.7% a year over 3 years.

🟢 EBITDA Margin has risen from 12.9% to 14.7% over 3 years (+1.8 pts).

🟢 PAT (Net Profit) has grown at 26.3% a year over 3 years.

🔴 ROE has fallen from 65.6% to 20.2% over 3 years (-45.5 pts).

🔴 ROCE has fallen from 54.8% to 26.8% over 3 years (-28.1 pts).

🔴 Total Debt has grown at 101.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹8 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹71 Cr

Total Liabilities

₹42 Cr

Total Debt

₹17 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹8 Cr

Recent News

6 general

SUNREST LIFESCIENCE LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 16 Oct

Momentum Stocks: Blue Coast, Sunrest Lifescience, Quick Heal Technologies gain on sheer momentum

Moneycontrol.com, 16 Oct

Sunrest Lifescience Rights Issue 2026 Date, Price, Allotment, Ratio

IPO Watch, 17 Aug

Sunrest Lifescience wins Rs 9.22 crore order from Gujarat Medical Services Corporation Limited

scanx.trade, 20 Aug

Compare with

Equitymaster, 07 Oct

Sunrest Lifescience Rights Issue 2026 Date, Price, Allotment, Ratio

IPO Watch, 03 Apr

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟡Business QualityAdequate11.1/20

🟡Financial HealthAdequate12/20

🟢GrowthStrong14.7/20

🟡ProfitabilityModerate9.3/15

🟡ValuationFair7.5/15

🔴RiskHigh2.5/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 33% a year43.4% CAGR
✓EBITDA margin holds above 13%14.7%
✗Free cash flow remains positive-₹8 Cr
✓Debt / EBITDA stays below 2x1.7x
✓ROCE stays above 24%26.8%