Vivanza Biosciences Limited

Healthcare — Drug Manufacturers - Specialty & Generic · BSE

₹1.70+₹0.03 (+1.80%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

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

In simple words: Strong business and financial position, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Vivanza Biosciences Limited engages in the manufacturing and sale of pharmaceutical products in India.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees6

Annual revenue₹116 Cr

How does it make money?

Turns over ₹116 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹19.32 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin0.7%

Net margin0.3%

Revenue / employee₹19.32 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.

SUN PHARMACEUTICAL IND LP/E 34.9x · ROE 14.5%

DR. REDDY S LABORATORIESP/E 31.0x · ROE 8.8%

CIPLA LTDP/E 31.8x · ROE 9.8%

DIVI S LABORATORIES LTDP/E 83.0x · ROE 17.5%

What is its competitive advantage?Some evidence

ROCE of 15.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.7%

ROE9.0%

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 +551% while net margin moved -90% 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+551%

Margin effect-90%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 9.0% is weak
✗ ROE has fallen by 5.6 points over the period

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

75/ 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.

Historical Valuation

Current P/E

14.2x

3Y Median

140.0x

40 monthly readings · mean 124.5x · range 17.0x–296.4x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 90% below its 3y median of 140.0x. 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 58% below the peer median of 33.3x.

vs. its own history

Cheap

140.0x median over 40 months · -90%

vs. sector peers

Cheap

33.3x median of 4 peers · -58%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.2x

P/B

1.60x

EV/EBITDA

22.0x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Valuation below its historical average
At 14.2x the stock trades 90% below its own median of 140.0x.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 6.6% to 0.7% over 3 years.
Debt is rising
Total debt is up 27% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 14.6% to 9.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.5% to 15.7% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 3 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 2.34x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.9 points, from 6.6% to 0.7%.
🟡Debt is increasingFinancial
Total debt is up 27% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 34% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 90% 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.
Cheaper than its peers
It trades 58% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 6.6% to 0.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 13.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 14.6% to 9.0%. 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 65% a year✓ 86.7% CAGR
Latest reported year was 7.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 0.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 13.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 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 · 5 neutral · 2 weak

Market Cap

₹7 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.2x

Cheap

Cheap against the generic band

P/B Ratio

1.60x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.12

Profitable

Profitable on a per-share basis

ROE

9.0%

Moderate

Moderate capital efficiency

ROCE

15.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.34x

High

High leverage

Revenue Growth (YoY)

7.9%

Modest

Modest growth

Profit Growth (YoY)

100.0%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹1.7

Operating Margin

3.0%

Weak

Thin margins leave little room for error

Net Margin

0.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.13

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

15%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1.7 / 1.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹18 Cr	₹28 Cr	₹7 Cr	₹116 Cr	+86.7%
EBITDA	₹1 Cr	₹1 Cr	-₹0 Cr	₹1 Cr	-13.2%
EBITDA Margin	6.6%	4.2%	-3.5%	0.7%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	-₹1 Cr	₹0 Cr	-13.0%
EPS	₹0.15	₹0.01	₹-0.17	₹0.1	-12.6%
ROE	14.6%	11.8%	-17.0%	9.0%	—
ROCE	20.5%	15.1%	-4.3%	15.7%	—
Total Debt	₹8 Cr	₹5 Cr	₹9 Cr	₹10 Cr	+8.4%
Free Cash Flow	-₹1 Cr	₹2 Cr	-₹3 Cr	-₹3 Cr	—

🟢 Revenue has grown at 86.7% a year over 3 years.

🔴 EBITDA has shrunk at 13.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 6.6% to 0.7% over 3 years (-5.9 pts).

🔴 PAT (Net Profit) has shrunk at 13.0% a year over 3 years.

🔴 EPS has shrunk at 12.6% a year over 3 years.

🔴 ROE has fallen from 14.6% to 9.0% over 3 years (-5.6 pts).

🔴 ROCE has fallen from 20.5% to 15.7% over 3 years (-4.8 pts).

🔴 Total Debt has grown at 8.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹22 Cr

Total Liabilities

₹18 Cr

Total Debt

₹10 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

24.7%

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 mixed1 negative3 general

Compare with

Equitymaster, 15 Oct

Vivanza Biosciences Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Vivanza Biosciences Downgraded to Strong Sell Amid Weak Technicals and Financial Strain

MarketsMojo, 12 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Vivanza Biosciences Ltd. Share Price Surges 8.84% Today

Univest, 28 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Vivanza Biosciences closes trading window ahead of Q2FY27 results

scanx.trade, 28 SeptResults

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

Vivanza Biosciences Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak8.8/20

🔴Financial HealthStretched7.9/20

🔴GrowthWeak8.9/20

🔴ProfitabilityWeak4.6/15

🟢ValuationAttractive11.8/15

🔴RiskHigh3.7/10

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. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 65% a year86.7% CAGR
✓EBITDA margin holds above -1%0.7%
✗Debt / EBITDA falls below 3x13.3x
✗Free cash flow remains positive-₹3 Cr
✗Interest cover stays above 3x2.9x