Akums Drugs and Pharmaceuticals Limited (AKUMS) AI Stock Analysis

• Market Cap: ₹74.64B
• Dividend Yield: N/A
• Average Volume (3M): 11.50K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 1.49
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 7,536
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 4.33
• Shares Outstanding: 157,393,980
• 10 Day Avg. Volume: 12,021
• 30 Day Avg. Volume: 11,497
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 1.74
• P/FCF Ratio: 36.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹680.00
• Price Target Upside: 61.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 17.72
• Revenue Forecast (FY): ₹42.98B

• Rating: 63 Neutral
• Price Target: ₹505.00 ▲(20.21% Upside)
• Action: Reiterated Date: 12/18/25
• Date: Action: Reiterated 12/18/25

The overall stock score for Akums Drugs and Pharmaceuticals Limited is driven primarily by strong financial performance, with notable revenue growth and improved profitability. However, technical indicators suggest a bearish trend, and the valuation is moderate without a dividend yield to attract income investors. The absence of earnings call insights and corporate events did not impact the score.

Positive Factors

Sustained Revenue Growth

Akums has delivered positive top-line growth across consecutive years, demonstrating product breadth and market access in formulations, OTC and exports. Durable revenue growth supports continued reinvestment in R&D and manufacturing scale, underpinning medium-term earnings resilience.

Material Deleveraging

A sharp reduction in leverage materially improves financial flexibility, lowering interest burden and enabling capital allocation toward capacity, exports or M&A. Stronger balance sheet reduces solvency risk and supports long-term strategic investment choices.

Strong Cash Generation

Consistent operating cash flow and rising free cash flow indicate efficient cash conversion and internal funding capacity. Reliable cash generation supports capex for manufacturing, working capital for exports, and the ability to sustain operations without reliance on external financing.

Negative Factors

Growth Deceleration

The sharp slowdown from double-digit to low-single-digit revenue growth suggests slowing demand, pricing pressure, or market saturation in key segments. If structural, this reduction in growth rate can constrain margin expansion and limit long-term return expectations absent new product or market wins.

Operating Margin Pressure

A decline in EBIT margin signals weakening operational efficiency or rising cost base versus revenues. Persisting margin compression would erode profitability, reduce internal cash available for reinvestment, and make the business more sensitive to cost swings or competitive pricing dynamics.

Limited Public Guidance / Calls

An absence of earnings-call detail and formal guidance reduces transparency for investors and analysts, making it harder to assess management's strategy and forecasting. Over the medium term, this can increase perceived execution risk and impede capital partners' ability to monitor progress.

Akums Drugs and Pharmaceuticals Limited Business Overview & Revenue Model

Company Description

Akums Drugs and Pharmaceuticals Limited manufactures and sells pharmaceutical products and active pharmaceutical ingredients India and internationally. The company provides drugs, ayurvedic, herbals, toiletries, nutraceuticals, food and dietary supplements, derma and cosmetics, healthcare and hospital products, over-the-counter (OTC) products, active pharmaceutical ingredients, excipients, and compounds. It also offers branded formulations on various dosage forms, including tablets, capsules, injectables, opthalmics, and soft gelatin capsules for therapeutic areas, such as gynaecology, cardiology, orthopaedics, pediatrics, and dermatology, as well as anti-infectives, pain management and gastroenterology. In addition, the company operates as pharmaceutical contract development and manufacturing company. The company was incorporated in 2004 and is based in Delhi, India.

How the Company Makes Money

Akums generates revenue through the manufacture and sale of pharmaceutical products, including generics and branded formulations. The company has established multiple revenue streams, including direct sales to pharmacies and hospitals, partnerships with global pharmaceutical companies for contract manufacturing, and export of its products to international markets. Additionally, AKUMS benefits from collaborations with healthcare providers and distributors, which help widen its market reach. The company's focus on research and development also allows it to introduce new products, further enhancing its revenue potential.

Akums Drugs and Pharmaceuticals Limited Financial Statement Overview

Summary

Akums Drugs and Pharmaceuticals Limited demonstrates strong revenue growth and improved profitability, with significant improvements in gross and net profit margins. The balance sheet shows reduced leverage and improved equity position, although operational efficiency as indicated by EBIT margin could be enhanced. Cash flow remains strong, with positive free cash flow growth and efficient cash generation relative to net income.

Income Statement

Akums Drugs and Pharmaceuticals Limited shows strong revenue growth with a 13.7% increase from 2023 to 2024 and a 1.3% increase from 2024 to 2025. The gross profit margin improved significantly to 39.4% in 2025 from 35.8% in 2024. The net profit margin also turned positive to 8.3% in 2025 from a negative margin in 2024. However, the EBIT margin decreased from 8.9% in 2024 to 7.6% in 2025, indicating some operational challenges.

Balance Sheet

The company's debt-to-equity ratio improved significantly from 0.80 in 2024 to 0.03 in 2025, reflecting a reduction in leverage. The return on equity (ROE) increased to 11.1% in 2025, showing improved profitability. However, the equity ratio decreased from 20.2% in 2024 to 74.1% in 2025, indicating a stronger equity position relative to total assets.

Cash Flow

Operating cash flow remained strong at 4.65 billion in 2025, although it decreased slightly from 4.98 billion in 2024. The free cash flow grew by 3.2% from 2024 to 2025, indicating better cash management. The operating cash flow to net income ratio is robust at 1.38, suggesting efficient cash generation relative to net income.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	40.71B	40.20B	34.75B	36.47B
Gross Profit	16.05B	14.37B	11.67B	12.69B
EBITDA	5.29B	1.31B	3.09B	-821.80M
Net Income	3.38B	-40.35M	948.55M	-2.53B
Balance Sheet
Total Assets	41.13B	35.16B	32.67B	30.69B
Cash, Cash Equivalents and Short-Term Investments	5.82B	2.88B	1.50B	1.03B
Total Debt	882.12M	5.65B	6.19B	3.95B
Total Liabilities	10.50B	27.96B	25.43B	24.44B
Stockholders Equity	30.47B	7.09B	7.17B	6.22B
Cash Flow
Free Cash Flow	1.93B	1.87B	-1.52B	-2.26B
Operating Cash Flow	4.65B	4.98B	1.77B	318.54M
Investing Cash Flow	-5.48B	-3.30B	-3.05B	-2.35B
Financing Cash Flow	727.88M	-1.08B	1.25B	2.36B

Akums Drugs and Pharmaceuticals Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 420.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AKUMS, the sentiment is Neutral. The current price of 420.1 is below the 20-day moving average (MA) of 470.80, below the 50-day MA of 452.30, and below the 200-day MA of 483.87, indicating a neutral trend. The MACD of 9.99 indicates Positive momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 39.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AKUMS.

Akums Drugs and Pharmaceuticals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDRAMEDCO	64 Neutral	₹35.78B	20.14	―	0.96%	6.51%	18.24%
WANBURY	64 Neutral	₹8.84B	13.03	―	―	8.92%	-5.56%
AKUMS	63 Neutral	₹74.64B	22.82	―	―	―	―
BAFNAPH	58 Neutral	₹2.58B	26.66	―	―	-0.77%	2055.99%
BALPHARMA	58 Neutral	₹1.19B	12.63	―	1.62%	-9.07%	5.36%
KOPRAN	57 Neutral	₹6.14B	38.38	―	1.96%	-6.96%	-66.75%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Akums Drugs and Pharmaceuticals Limited Corporate Events

Akums Closes Trading Window Ahead of Q3 FY2025 Unaudited Results

Akums Drugs and Pharmaceuticals Limited has announced the closure of its trading window for designated persons and their immediate relatives from 1 January 2026 until 48 hours after the declaration of its unaudited financial results for the quarter ending 31 December 2025, in line with SEBI (Prohibition of Insider Trading) Regulations, 2015 and its internal code of conduct on insider trading. The company added that the date of the board meeting to consider and approve these quarterly unaudited results will be communicated separately, underscoring its adherence to regulatory norms governing disclosure and trading in its securities.