TTK Healthcare Limited

Healthcare — Drug Manufacturers - General · NSE

₹1,038.00+₹5.30 (+0.51%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

TTK Healthcare Limited engages in the animal welfare, consumer product, medical device, protective device, food, and other businesses in India. It operates through Animal Welfare, Consumer Products, Medical Devices, Foods, Protective Devices and Other segments.

IndustryDrug Manufacturers - General

SectorHealthcare

Employees1,384

Annual revenue₹854 Cr

How does it make money?

Turns over ₹854 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 1,384 employees supports ₹61.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹61.7 lakh

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?Little sign of one

Returns on capital of 7.5% 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 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 +19% while net margin moved -91% 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+19%

Margin effect-91%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.9% — barely ahead of inflation
✗ Profit has declined at 53.2% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

65/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

19.8x

3Y Median

19.3x

40 monthly readings · mean 17.6x · range 2.6x–37.6x

Sector Median

33.3x

median of 4 sector peers

🟡Currently trading close to its 3y median of 19.3x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 41% below the peer median of 33.3x.

vs. its own history

Fair

19.3x median over 40 months · +3%

vs. sector peers

Cheap

33.3x median of 4 peers · -41%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 11% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 67.1% to 5.9% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.19x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Profit is decliningFinancial
Net profit is down 90% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 41% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 2.19x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 5.9% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 67.1% to 5.9%. 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.
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
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

1EBITDA margin holds above 9%✓ 11.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹27 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✓ 5.9% CAGR
Latest reported year was 13.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 7.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

4 good · 3 neutral · 4 weak

Market Cap

₹1,467 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.8x

Fair

Fairly valued against the generic band

P/B Ratio

1.32x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹52.34

Profitable

Profitable on a per-share basis

ROE

5.9%

Weak

Weak capital efficiency

ROCE

7.5%

Weak

Low return on total capital employed

Debt/Equity

2.19x

High

High leverage

Revenue Growth (YoY)

13.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

63.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.96%

Modest

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

Free Cash Flow

-₹27 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

4.9%

Weak

Thin margins leave little room for error

Net Margin

8.3%

Average

Average bottom-line conversion

Current Ratio

5.91

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.35

Defensive

Steadier than the market

52W Range Position

59%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1031.1 / 1078.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

51.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹720 Cr	₹748 Cr	₹798 Cr	₹854 Cr	+5.9%
EBITDA	₹80 Cr	₹100 Cr	₹105 Cr	₹97 Cr	+6.7%
EBITDA Margin	11.2%	13.4%	13.2%	11.4%	—
PAT (Net Profit)	₹640 Cr	₹63 Cr	₹82 Cr	₹66 Cr	-53.2%
EPS	₹452.72	₹44.47	₹57.79	₹46.48	-53.2%
ROE	67.1%	6.3%	7.7%	5.9%	—
ROCE	7.0%	8.6%	10.3%	7.5%	—
Total Debt	₹27 Cr	₹23 Cr	₹24 Cr	₹24 Cr	-3.7%
Free Cash Flow	-₹37 Cr	-₹15 Cr	-₹17 Cr	-₹27 Cr	—

🟢 Revenue has grown at 5.9% a year over 3 years.

🟢 EBITDA has grown at 6.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 11.4% over 3 years.

🔴 PAT (Net Profit) has shrunk at 53.2% a year over 3 years.

🔴 EPS has shrunk at 53.2% a year over 3 years.

🔴 ROE has fallen from 67.1% to 5.9% over 3 years (-61.2 pts).

🟡 ROCE has held roughly flat at 7.5% over 3 years.

🟢 Total Debt has shrunk at 3.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,329 Cr

Total Liabilities

₹214 Cr

Cash & Equivalents

₹22 Cr

Operating Cash Flow

-₹21 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

3.9%

Insider Holding

75.6%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

17 Jul 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 positive1 mixed1 negative3 general

TTK Healthcare Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 11 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

TTK Healthcare Rewards Shareholders with ₹10 Dividend Recommendation for Financial Year 2026

Sahi, 30 MayCapital return

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

TTK Healthcare's (NSE:TTKHLTCARE) Problems Go Beyond Weak Profit

Simply Wall Street, 07 Jun

TTK Prestige declares no encumbrance on TTK Healthcare shares in FY26

scanx.trade, 17 Jun

TTK Healthcare vs Nifty 50: 1Y Return -11.05% vs -11.35%

Univest, 13 Oct

TTK Healthcare shares fall 3% after Q3 profit drops 34%

CNBC TV18, 22 JanResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

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

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Financial Health

WeakGrowth · Profitability · 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. 2 high-severity red flags sit above this conclusion and should be read first.

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