Viyash Scientific Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹225.90−₹0.03 (−0.01%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings, 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. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Viyash Scientific Limited operates as a veterinary pharmaceutical Company in India, the United States, Spain, and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees2,900

Annual revenue₹3,357 Cr

How does it make money?

Turns over ₹3,357 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 2,900 employees supports ₹1.16 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.16 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 11.2% 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 is the outlook?

4 analysts covering the stock expect revenue to grow about 13.6% and earnings to grow about 48.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.6%

Est. earnings growth+48.6%

Analysts4

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +137% while net margin moved -162% 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+137%

Margin effect-162%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.98 — moves roughly with the market
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

77/ 100

Good

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

Valuation

52/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

55.2x

1.3Y Median

384.4x

16 monthly readings · mean 321.0x · range 56.3x–522.2x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 86% below its 1.3y median of 384.4x. 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 66% above the peer median of 33.3x.

vs. its own history

Cheap

384.4x median over 16 months · -86%

vs. sector peers

Expensive

33.3x median of 4 peers · +66%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

14.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 0.5% to 20.4% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -17.3% to 6.1%.
Return on capital is rising
ROCE has improved from -11.1% to 11.2%.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 207% against revenue up 137% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 75% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 0.5% to 20.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 86% 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.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹188 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 207% against revenue up 137%. 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 66% above the peer median. That premium needs a reason that persists, or it closes.
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
Small 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 25% a year✓ 33.3% CAGR
Latest reported year was 114.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 20.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹188 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 11.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹9,970 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

55.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.39x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.09

Profitable

Profitable on a per-share basis

ROE

6.1%

Weak

Weak capital efficiency

ROCE

11.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

114.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

162.5%

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

₹188 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

19.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

12.5%

Average

Average margins

Net Margin

5.9%

Average

Average bottom-line conversion

Current Ratio

2.38

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.98

Market-like

Moves roughly in line with the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

238.6 / 253.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,418 Cr	₹1,366 Cr	₹2,963 Cr	₹3,357 Cr	+33.3%
EBITDA	₹7 Cr	₹73 Cr	₹399 Cr	₹685 Cr	+356.7%
EBITDA Margin	0.5%	5.4%	13.5%	20.4%	—
PAT (Net Profit)	-₹121 Cr	-₹36 Cr	₹23 Cr	₹177 Cr	—
EPS	₹-4.88	₹-1.44	₹0.53	₹4.01	—
ROE	-17.3%	-5.5%	1.0%	6.1%	—
ROCE	-11.1%	-0.9%	3.0%	11.2%	—
Total Debt	₹444 Cr	₹488 Cr	₹654 Cr	₹490 Cr	+3.4%
Free Cash Flow	-₹69 Cr	-₹0 Cr	₹237 Cr	₹188 Cr	—

🟢 Revenue has grown at 33.3% a year over 3 years.

🟢 EBITDA has grown at 356.7% a year over 3 years.

🟢 EBITDA Margin has risen from 0.5% to 20.4% over 3 years (+19.9 pts).

🟢 PAT (Net Profit) has turned positive, from -₹121 Cr to ₹177 Cr.

🟢 EPS has turned positive, from ₹-4.88 to ₹4.01.

🟢 ROE has risen from -17.3% to 6.1% over 3 years (+23.4 pts).

🟢 ROCE has risen from -11.1% to 11.2% over 3 years (+22.3 pts).

🔴 Total Debt has grown at 3.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹69 Cr to ₹188 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,628 Cr

Total Liabilities

₹1,514 Cr

Cash & Equivalents

₹256 Cr

Operating Cash Flow

₹323 Cr

Capex

-₹135 Cr

Shareholding (proxy)

Institutional Holding

10.8%

Insider Holding

55.6%

Corporate Actions

Ex-Dividend Date

08 Sept 2021

Analyst Consensus

Recommendations

4 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹326

+44.3% vs CMP

Target Range

₹310 – ₹340

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 mixed4 general

Should You Be Adding Viyash Scientific (NSE:VIYASH) To Your Watchlist Today?

Simply Wall Street, 16 Sept

Viyash Scientific acquires BioForLife for EUR 16.975 million to expand in Europe

scanx.trade, 14 Oct

VIYASH Stock Price and Chart — NSE:VIYASH

TradingView, 24 Jun

Promoter Carlyle Group sells nearly 11% stake in Viyash Scientific; Invesco MF buys additional over 6%...

Moneycontrol.com, 27 Aug

Stocks to Buy: Expert Picks That Could Deliver Returns of Up to 27%; Pricol, Redington and More | Target Price

Goodreturns, 13 OctAnalyst view

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

Viyash Scientific Share Price Target 2026: Rs 325 Analyst Forecast

Univest, 25 JunAnalyst view

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

Watch Items

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

StrongBusiness Quality · Financial Health · Growth

MiddlingProfitability · Valuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑