Vivimed Labs Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹6.58−₹0.13 (−1.94%)

DalalBaazaar Score

19 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, but sales are shrinking. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vivimed Labs Limited, together with its subsidiaries, manufactures and sells active pharmaceutical ingredients (APIs), finished dosage formulations, specialty chemicals, and retail branded formulations in India.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Annual revenue₹70 Cr

How does it make money?

Turns over ₹70 Cr a year. Of every ₹100 of sales, about ₹-252 reaches shareholders as profit, with ₹-209 left at the operating level before interest, tax and depreciation.

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 -56.4% 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 -63% while net margin moved +44% 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-63%

Margin effect+44%

DalalBaazaar Score

19/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

18/ 100

Weak

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

Valuation

30/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

—

PEG

—

Red Flags

6 items require attention · 4 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only -41.3x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹176 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 156.6 points, from -52.1% to -208.8%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -9.8x to -41.3x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.38 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from -52.1% to -208.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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.
Several serious flags at once
4 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 -211%✓ -208.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -41.3x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ 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

1 good · 4 neutral · 6 weak

Market Cap

₹55 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-21.13

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

-56.4%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

-40.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-452.1%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹102 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

-12.9%

Weak

Assets generate little profit

Operating Margin

-822.9%

Weak

Thin margins leave little room for error

Net Margin

-231.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.38

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.84

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

6.1 / 6.0

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

68.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹187 Cr	₹149 Cr	₹116 Cr	₹70 Cr	-27.9%
EBITDA	-₹98 Cr	₹2 Cr	-₹9 Cr	-₹146 Cr	—
EBITDA Margin	-52.1%	1.5%	-7.5%	-208.8%	—
PAT (Net Profit)	-₹329 Cr	-₹45 Cr	-₹32 Cr	-₹176 Cr	—
EPS	₹-39.62	₹-5.48	₹-3.85	—	—
ROCE	-51.8%	-8.3%	-5.6%	-56.4%	—
Total Debt	₹381 Cr	₹379 Cr	₹376 Cr	₹397 Cr	+1.4%
Free Cash Flow	₹30 Cr	-₹26 Cr	-₹6 Cr	₹7 Cr	-39.4%

🔴 Revenue has shrunk at 27.9% a year over 3 years.

🔴 EBITDA Margin has fallen from -52.1% to -208.8% over 3 years (-156.6 pts).

🔴 ROCE has fallen from -51.8% to -56.4% over 3 years (-4.6 pts).

🟡 Total Debt has been broadly flat over 3 years (1.4% a year).

🔴 Free Cash Flow has shrunk at 39.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹753 Cr

Total Liabilities

₹964 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

9.4%

Insider Holding

14.9%

Corporate Actions

Ex-Dividend Date

19 Sept 2018

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

3 mixed3 general

Vivimed Labs Share Analyst Review 2026: Price Target and Outlook

Univest, 12 JunAnalyst view

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

Vivimed Labs Limited's (NSE:VIVIMEDLAB) 31% Dip In Price Shows Sentiment Is Matching Revenues

Simply Wall Street, 09 Feb

Vivimed Labs reports widened net loss in FY26 amid CIRP

scanx.trade, 17 Jul

Why Is Vivimed Labs Share Price Falling Key Reasons 2026

Univest, 26 JunPrice 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.

Vivimed Labs confirms no encumbrance on promoter shares in FY26

scanx.trade, 17 Jun

Vivimed Labs Share Price Target 2026: Rs 6.86 Analyst Forecast

Univest, 26 JunAnalyst view

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

Watch Items

Revenue growth is negative (-40.5%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Vivimed Labs Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 3 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑