Transgene Biotek Limited

Healthcare — Biotechnology · BSE

₹2.54+₹0.02 (+0.79%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Transgene Biotek Limited, a biotechnology company, provides research and development services for bulk drugs in India. It offers a portfolio of oncology drugs, oral drug delivery, and biogenerics.

IndustryBiotechnology

SectorHealthcare

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹-783 reaches shareholders as profit, with ₹-186 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO 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?Little sign of one

Returns on capital of -0.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE32.0%

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 +283% while net margin moved -93% 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+283%

Margin effect-93%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 2.05x is high — earnings must service borrowings before shareholders see anything
✗ Current ratio of 0.08 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only -0.6x — little room if profits dip

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

29/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -789.3% to -186.4% over 3 years.
Return on equity is rising
ROE has improved from -52.9% to -19.7%.
Return on capital is rising
ROCE has improved from -4.1% to -0.5%.

🔴 What Needs Attention0

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

Red Flags

6 items require attention · 3 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 2.05x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.6x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹2 Cr in the latest reported year.
🟡Debt is increasingFinancial
Total debt is up 31% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.08 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -789.3% to -186.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.05x. Interest is payable whether or not the business has a good year.
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 42% a year✓ 56.5% CAGR
Latest reported year was 21.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -188%✓ -186.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -0.6x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -0.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 11 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 3 neutral · 7 weak

Market Cap

₹19 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

2.30x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-0.21

Loss-making

Negative earnings per share — the business is losing money

ROE

-19.7%

Weak

Weak capital efficiency

ROCE

-0.5%

Weak

Low return on total capital employed

Debt/Equity

2.05x

High

High leverage

Revenue Growth (YoY)

21.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-144.5%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-165.8%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.08

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.97

Market-like

Moves roughly in line with the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2.6 / 2.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+56.5%
EBITDA	-₹0 Cr	-₹0 Cr	-₹0 Cr	-₹0 Cr	—
EBITDA Margin	-789.3%	-180.3%	-130.4%	-186.4%	—
PAT (Net Profit)	-₹6 Cr	-₹1 Cr	-₹1 Cr	-₹2 Cr	—
EPS	₹-0.79	₹-0.09	₹-0.09	₹-0.22	—
ROE	-52.9%	-6.1%	-6.7%	-19.7%	—
ROCE	-4.1%	-0.4%	-0.3%	-0.5%	—
Total Debt	₹13 Cr	₹14 Cr	₹15 Cr	₹17 Cr	+9.3%
Free Cash Flow	-₹0 Cr	₹0 Cr	-₹1 Cr	-₹0 Cr	—

🟢 Revenue has grown at 56.5% a year over 3 years.

🟢 EBITDA Margin has risen from -789.3% to -186.4% over 3 years (+602.9 pts).

🟢 ROE has risen from -52.9% to -19.7% over 3 years (+33.1 pts).

🟢 ROCE has risen from -4.1% to -0.5% over 3 years (+3.6 pts).

🔴 Total Debt has grown at 9.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹144 Cr

Total Liabilities

₹135 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

21.7%

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 mixed5 general

Transgene Biotek Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Transgene Biotek closes trading window from Oct 1 for Q2FY27 results

scanx.trade, 22 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Transgene Biotek Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

FERMENTA Stock Price and Chart — NSE:FERMENTA

TradingView, 20 Apr

Transgene Biotek statutory auditors resign citing workload constraints

scanx.trade, 23 Sept

Transgene Biotek board to appoint Eswara Rao & Co as auditors

scanx.trade, 02 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑