Veerhealth Care Limited

Healthcare — Drug Manufacturers - Specialty & Generic · BSE

₹49.69+₹0.05 (+0.10%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Veerhealth Care Limited engages in manufacturing and markets oral care, skincare, personal care, cosmetic, and Ayurvedic products and formulations in India.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees64

Annual revenue₹32 Cr

How does it make money?

Turns over ₹32 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 64 employees supports ₹50.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹50.1 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 5.3% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +143% while net margin moved -86% 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+143%

Margin effect-86%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.4% is weak
✗ ROE has fallen by 5.0 points over the period

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

45/ 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

69.0x

3Y Median

91.0x

40 monthly readings · mean 86.5x · range 23.5x–211.0x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 24% below its 3y median of 91.0x. 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 107% above the peer median of 33.3x.

vs. its own history

Cheap

91.0x median over 40 months · -24%

vs. sector peers

Expensive

33.3x median of 4 peers · +107%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

32.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 7.4% to 2.4% — each rupee of shareholder capital earns less than it did.

Red Flags

5 items require attention · 1 high · 4 watch

🔴Receivables growing faster than salesFinancial
Receivables up 430% against revenue up 143% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 7.9x to 4.4x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 66% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 3.1 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 24% 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?

Margins are being competed away
EBITDA margin has fallen from 13.2% to 10.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 430% against revenue up 143%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 107% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 7.4% to 2.4%. 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.

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

1Revenue growth stays above 26% a year✓ 34.4% CAGR
Latest reported year was 388.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 5.3%
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

₹99 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

69.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.26x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.72

Profitable

Profitable on a per-share basis

ROE

2.4%

Weak

Weak capital efficiency

ROCE

5.3%

Weak

Low return on total capital employed

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

388.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

375.0%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.8%

Average

Average margins

Net Margin

2.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

93%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

49.7 / 49.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹13 Cr	₹17 Cr	₹32 Cr	+34.4%
EBITDA	₹2 Cr	₹2 Cr	₹2 Cr	₹3 Cr	+22.9%
EBITDA Margin	13.2%	15.1%	9.1%	10.1%	—
PAT (Net Profit)	₹2 Cr	₹0 Cr	₹0 Cr	₹1 Cr	-29.9%
EPS	₹0.76	₹0.21	₹0.2	₹0.27	-29.2%
ROE	7.4%	1.9%	1.8%	2.4%	—
ROCE	4.6%	5.1%	2.4%	5.3%	—
Total Debt	—	—	₹5 Cr	₹5 Cr	—
Free Cash Flow	-₹3 Cr	₹2 Cr	-₹4 Cr	-₹1 Cr	—

🟢 Revenue has grown at 34.4% a year over 3 years.

🟢 EBITDA has grown at 22.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 13.2% to 10.1% over 3 years (-3.1 pts).

🔴 PAT (Net Profit) has shrunk at 29.9% a year over 3 years.

🔴 EPS has shrunk at 29.2% a year over 3 years.

🔴 ROE has fallen from 7.4% to 2.4% over 3 years (-5.0 pts).

🟡 ROCE has held roughly flat at 5.3% over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹44 Cr

Total Liabilities

₹21 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

42.9%

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 mixed4 general

Veerhealth Care Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 16 Oct

Compare with NIYATI INDUSTRIES

Equitymaster, 14 Oct

Veerhealth Care Ltd Board Meeting scheduled for March 28, 2026 to consider fund raising proposal under Regulation 29

scanx.trade, 28 Mar

Veerhealth Care Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 09 Sept

Veerhealth Care wins repeat order worth ₹1.11 crore

scanx.trade, 11 JulOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Veerhealth Care Q1 FY27 Results: Revenue Rs 24 Cr, PAT Rs 1 Cr Turnaround

Univest, 17 AugResults

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

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Valuation · Risk

WeakBusiness Quality · Profitability

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. 1 high-severity red flag sits 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 ↑