Vaishali Pharma Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹7.86+₹0.07 (+0.90%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently 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 Vaishali Pharma Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Vaishali Pharma Limited engages in the pharmaceutical business in India and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees30

Annual revenue₹105 Cr

How does it make money?

Turns over ₹105 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 30 employees supports ₹3.49 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.49 Cr

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 9.8% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +64% while net margin moved -63% 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+64%

Margin effect-63%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 9.8% is below 10% — capital is not working hard
✗ ROCE has fallen by 13.9 points — returns are eroding
✗ EBITDA margin of 9.6% is thin — little cushion if costs rise
✗ Net margin of 4.1% is slim
• Revenue has compounded at 18.0% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

68/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

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

EV/EBITDA

11.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.27x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 16.3% to 5.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 23.7% to 9.8% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 1 high · 4 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.6 points, from 18.2% to 9.6%.
🟡Debt is increasingFinancial
Total debt is up 28% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 39% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 24% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 18.2% to 9.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 16.3% to 5.8%. 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.

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

1Revenue growth stays above 13% a year✓ 18.0% CAGR
Latest reported year was -3.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.6%
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✓ 3.7x
How much operating profit can fall before interest stops being comfortably covered.
5Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

4 / 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 buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹103 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

1.48x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0

Loss-making

Negative earnings per share — the business is losing money

ROE

5.8%

Weak

Weak capital efficiency

ROCE

9.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

-3.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

18.5%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

5.9%

Average

Average margins

Net Margin

4.1%

Average

Average bottom-line conversion

Current Ratio

2.34

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.36

Defensive

Steadier than the market

52W Range Position

49%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

8.2 / 8.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

16.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹64 Cr	₹82 Cr	₹98 Cr	₹105 Cr	+18.0%
EBITDA	₹12 Cr	₹9 Cr	₹9 Cr	₹10 Cr	-4.6%
EBITDA Margin	18.2%	10.8%	9.5%	9.6%	—
PAT (Net Profit)	₹7 Cr	₹1 Cr	₹1 Cr	₹4 Cr	-15.2%
EPS	₹0.59	₹0.07	—	—	—
ROE	16.3%	1.7%	1.3%	5.8%	—
ROCE	23.7%	6.8%	4.7%	9.8%	—
Total Debt	₹15 Cr	₹13 Cr	₹12 Cr	₹19 Cr	+8.6%
Free Cash Flow	₹1 Cr	₹1 Cr	-₹18 Cr	-₹0 Cr	—

🟢 Revenue has grown at 18.0% a year over 3 years.

🔴 EBITDA has shrunk at 4.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.2% to 9.6% over 3 years (-8.6 pts).

🔴 PAT (Net Profit) has shrunk at 15.2% a year over 3 years.

🔴 ROE has fallen from 16.3% to 5.8% over 3 years (-10.5 pts).

🔴 ROCE has fallen from 23.7% to 9.8% over 3 years (-13.9 pts).

🔴 Total Debt has grown at 8.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹123 Cr

Total Liabilities

₹54 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

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

Top 14 Pharma Stocks To Buy In India October 2026

Samco, 17 Oct

Vaishali Pharma Share: Bull Case vs Bear Case for 2026

Univest, 29 Sept

Compare with

Equitymaster, 15 Oct

Vaishali Pharma allots 45.37 lakh shares at ₹20 each to Kesar Pharma

scanx.trade, 03 Jul

Why Is Vaishali Pharma Share Price Falling Key Reasons 2026

Univest, 07 JulPrice 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.

VAISHALI PHARMA Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 07 Oct

Watch Items

Revenue growth is negative (-3.6%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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

StrongFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑