Venus Remedies Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹1,650.80+₹78.60 (+5.00%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Venus Remedies Limited engages in the pharmaceutical business in India, Latin America, Europe, the Middle East, Africa, Asia, and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees1,472

Annual revenue₹735 Cr

How does it make money?

Turns over ₹735 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 1,472 employees supports ₹49.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹49.9 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?Some evidence

ROCE of 19.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +33% while net margin moved +191% 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+33%

Margin effect+191%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.33 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

78/ 100

Good

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

Valuation

70/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

19.0x

3Y Median

19.4x

40 monthly readings · mean 20.2x · range 11.6x–54.1x

Sector Median

33.3x

median of 4 sector peers

🟡Currently trading close to its 3y median of 19.4x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 43% below the peer median of 33.3x.

vs. its own history

Fair

19.4x median over 40 months · -2%

vs. sector peers

Cheap

33.3x median of 4 peers · -43%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.3x

PEG

0.33

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 12.7% to 21.0% over 3 years.
Debt is being paid down
Total debt is down 71% over 3 years.
Cash generation is improving
Free cash flow is up 310% over 3 years.
Return on equity is rising
ROE has improved from 5.8% to 15.5%.
Return on capital is rising
ROCE has improved from 7.3% to 19.4%.
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

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 1.87x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.4% 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 12.7% to 21.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 71% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 43% 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 1.87x. 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.

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

1EBITDA margin holds above 19%✓ 21.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.9% CAGR
Latest reported year was 35.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹118 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹2,209 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.0x

Fair

Fairly valued against the generic band

P/B Ratio

3.32x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹86.91

Profitable

Profitable on a per-share basis

ROE

15.5%

Strong

Strong capital efficiency

ROCE

19.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.87x

High

High leverage

Revenue Growth (YoY)

35.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

139.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.61%

Modest

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

Free Cash Flow

₹118 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

15.3%

Good

Healthy core-business profitability

Net Margin

14.3%

Good

Strong bottom-line conversion

Current Ratio

2.44

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

76%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1662.2 / 1655.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

48.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹553 Cr	₹591 Cr	₹647 Cr	₹735 Cr	+9.9%
EBITDA	₹70 Cr	₹71 Cr	₹83 Cr	₹154 Cr	+29.8%
EBITDA Margin	12.7%	11.9%	12.8%	21.0%	—
PAT (Net Profit)	₹27 Cr	₹28 Cr	₹45 Cr	₹103 Cr	+57.0%
EPS	₹19.88	₹21.31	₹33.9	₹76.9	+57.0%
ROE	5.8%	5.8%	8.1%	15.5%	—
ROCE	7.3%	8.2%	12.4%	19.4%	—
Total Debt	₹42 Cr	₹41 Cr	₹2 Cr	₹12 Cr	-33.6%
Free Cash Flow	₹29 Cr	₹24 Cr	₹68 Cr	₹118 Cr	+60.0%

🟢 Revenue has grown at 9.9% a year over 3 years.

🟢 EBITDA has grown at 29.8% a year over 3 years.

🟢 EBITDA Margin has risen from 12.7% to 21.0% over 3 years (+8.2 pts).

🟢 PAT (Net Profit) has grown at 57.0% a year over 3 years.

🟢 EPS has grown at 57.0% a year over 3 years.

🟢 ROE has risen from 5.8% to 15.5% over 3 years (+9.7 pts).

🟢 ROCE has risen from 7.3% to 19.4% over 3 years (+12.1 pts).

🟢 Total Debt has shrunk at 33.6% a year over 3 years.

🟢 Free Cash Flow has grown at 60.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹854 Cr

Total Liabilities

₹190 Cr

Cash & Equivalents

₹25 Cr

Operating Cash Flow

₹156 Cr

Capex

-₹38 Cr

Shareholding (proxy)

Institutional Holding

1.4%

Insider Holding

47.2%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

07 Aug 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

2 positive4 general

Is Venus Remedies the Best Stock in Its Sector? A Look at the Numbers

Univest, 16 Oct

Venus Remedies secures 5 marketing authorisations in 4 global markets

scanx.trade, 16 Oct

Venus Remedies Slips Over 4%: VENUSREM.NS Retreats Toward Key Support - Swing Entry Signals

https://www.siam.in/, 09 Oct

Here's What We Like About Venus Remedies' (NSE:VENUSREM) Upcoming Dividend

Simply Wall Street, 04 AugCapital return

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

Venus Remedies Share Price Hits Record High: What's Driving the Pharma Stock Rally?

Kalkine India, 15 Jun

Venus Remedies consolidated net profit rises 139.27% in the June 2026 quarter

Business Standard, 21 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑