Thyrocare Technologies Limited

Healthcare — Diagnostics & Research · NSE

₹487.00−₹0.55 (−0.11%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

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, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Thyrocare Technologies Limited provides diagnostic testing services to patients, laboratories, and hospitals in India. It operates through three segments: Diagnostic Testing Services, Imaging Services, and Others.

IndustryDiagnostics & Research

SectorHealthcare

Employees1,906

Annual revenue₹822 Cr

How does it make money?

Turns over ₹822 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹33 left at the operating level before interest, tax and depreciation. Each of its 1,906 employees supports ₹43.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹43.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, CIPLA LTD, DR. REDDY S LABORATORIES, APOLLO HOSPITALS ENTER. L. 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 33.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 27.8% against a peer median of 14.5% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE14.5%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 17.7% and earnings to grow about 23.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.7%

Est. earnings growth+23.4%

Analysts5

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +59% while net margin moved +59% 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+59%

Margin effect+59%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 44.2x is demanding — it needs sustained high growth to justify
✓ P/E is 32% below its own historical median of 64.6x — cheap by its own standards
✗ P/B of 13.24x is a steep premium to book

Quality vs. Valuation

Company Quality

84/ 100

Excellent

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

Valuation

46/ 100

Fair

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.

Historical Valuation

Current P/E

44.2x

3Y Median

64.6x

40 monthly readings · mean 64.6x · range 44.3x–101.0x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 32% below its 3y median of 64.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 33% above the peer median of 33.3x.

vs. its own history

Cheap

64.6x median over 40 months · -32%

vs. sector peers

Expensive

33.3x median of 4 peers · +33%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

28.9x

PEG

1.22

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 23.9% to 32.7% over 3 years.
Cash generation is improving
Free cash flow is up 125% over 3 years.
Return on equity is rising
ROE has improved from 12.1% to 27.8%.
Return on capital is rising
ROCE has improved from 16.4% to 33.8%.
High return on capital employed
ROCE of 33.8% 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 Attention0

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

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 117% over 3 years, from ₹23 Cr to ₹51 Cr.
🔴High leverageFinancial
Debt/Equity of 8.65x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 33.8% 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 23.9% to 32.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 32% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
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 8.65x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 33% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Small 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
2 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 13% a year✓ 16.7% CAGR
Latest reported year was 24.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 31%✓ 32.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹192 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 31%✓ 33.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹7,751 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

44.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

13.24x

Rich

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

EPS (TTM)

₹11.02

Profitable

Profitable on a per-share basis

ROE

27.8%

Strong

Strong capital efficiency

ROCE

33.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

8.65x

High

High leverage

Revenue Growth (YoY)

24.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

31.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.92%

Modest

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

Free Cash Flow

₹192 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

30.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

27.0%

Good

Healthy core-business profitability

Net Margin

20.1%

Good

Strong bottom-line conversion

Current Ratio

3.39

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

45%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

532.1 / 565.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

18.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹517 Cr	₹568 Cr	₹681 Cr	₹822 Cr	+16.7%
EBITDA	₹124 Cr	₹142 Cr	₹195 Cr	₹269 Cr	+29.4%
EBITDA Margin	23.9%	25.1%	28.6%	32.7%	—
PAT (Net Profit)	₹64 Cr	₹71 Cr	₹92 Cr	₹163 Cr	+36.2%
EPS	₹4.05	₹4.45	₹5.74	₹10.21	+36.2%
ROE	12.1%	13.4%	16.7%	27.8%	—
ROCE	16.4%	18.1%	26.0%	33.8%	—
Total Debt	₹23 Cr	₹42 Cr	₹25 Cr	₹51 Cr	+29.6%
Free Cash Flow	₹86 Cr	₹106 Cr	₹146 Cr	₹192 Cr	+31.0%

🟢 Revenue has grown at 16.7% a year over 3 years.

🟢 EBITDA has grown at 29.4% a year over 3 years.

🟢 EBITDA Margin has risen from 23.9% to 32.7% over 3 years (+8.7 pts).

🟢 PAT (Net Profit) has grown at 36.2% a year over 3 years.

🟢 EPS has grown at 36.2% a year over 3 years.

🟢 ROE has risen from 12.1% to 27.8% over 3 years (+15.8 pts).

🟢 ROCE has risen from 16.4% to 33.8% over 3 years (+17.5 pts).

🔴 Total Debt has grown at 29.6% a year over 3 years.

🟢 Free Cash Flow has grown at 31.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹747 Cr

Total Liabilities

₹161 Cr

Cash & Equivalents

₹38 Cr

Operating Cash Flow

₹213 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

22.0%

Insider Holding

51.2%

Corporate Actions

Dividend Rate

₹9.33

Ex-Dividend Date

23 Jun 2026

Analyst Consensus

Recommendations

5 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹681

+39.8% vs CMP

Target Range

₹615 – ₹730

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%
DR. REDDY S LABORATORIES	31.0x	8.8%
APOLLO HOSPITALS ENTER. L	54.3x	22.0%

Recent News

1 positive2 mixed3 general

Do These 3 Checks Before Buying Thyrocare Technologies Limited (NSE:THYROCARE) For Its Upcoming Dividend

Simply Wall Street, 19 JunCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Thyrocare Technologies shares crash 8% as promoter offloads 9.9% stake

Business Standard, 13 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Thyrocare shares crack 8% as promoter Docon Technologies sells 10% stake

The Economic Times, 13 Aug

Thyrocare Technologies Ltd. Share Price at 52-Week High

Univest, 11 Aug

Why PharmEasy Keeps Selling Thyrocare Shares?

UnlistedZone, 17 Aug

Thyrocare shares fall 7% as founder sells 9.9% stake via block deal

Moneycontrol.com, 13 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health · Risk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑