Bafna Pharmaceuticals Limited (BAFNAPH) AI Stock Analysis

• Market Cap: ₹2.72B
• Dividend Yield: N/A
• Average Volume (3M): 1.19K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.04
• Revenue Growth: -0.77%
• EPS Growth: 2055.99%
• Country: IN
• Employees: 363
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.32
• Shares Outstanding: 23,656,336
• 10 Day Avg. Volume: 1,123
• 30 Day Avg. Volume: 1,187
• PEG Ratio: -0.98
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 1.22
• P/FCF Ratio: -76.05
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹121.00 ▼(-21.76% Downside)

The score is driven primarily by solid historical revenue growth and a generally stable balance sheet, but it is held back by recent profitability and cash flow weakness. Technical indicators are notably bearish (below key moving averages with negative MACD), and valuation looks relatively high at ~31.5x earnings with no dividend yield provided.

Positive Factors

Multi-year Revenue Growth

Sustained multi-year top-line expansion indicates durable demand for the company’s products and successful commercial execution. Strong revenue growth supports economies of scale, funds reinvestment in R&D or capacity, and underpins long-term market-share gains despite short-term profit pressure.

Stable Balance Sheet

A stable equity base and moderate leverage provide financial flexibility to invest in growth, withstand cyclical shocks, and access capital when needed. This structural strength reduces refinancing risk and supports strategic initiatives such as product launches or capacity expansion over the medium term.

Operating Cash Flow Recovery

Recovered operating cash flow signals the core business can generate cash from operations, improving internal funding capacity for working capital and capex. Over months, stronger OCF lowers reliance on external financing and supports sustainable operations and incremental investments.

Negative Factors

Margin Compression

Sustained margin compression reduces the company’s ability to convert revenue into durable earnings and free cash. If driven by structural cost increases or pricing pressure, compressed margins can limit reinvestment, weaken returns on capital, and make growth less value-accretive over the medium term.

Volatile Free Cash Flow

Persistent volatility and recent negative free cash flow undermine the firm’s capacity to self-fund capex, debt reduction, or distributions. Over months, this raises refinancing and liquidity risks, forces greater reliance on external funding, and constrains strategic flexibility during downturns.

Rising Leverage Risk

A declining equity ratio and rising leverage trend increase financial vulnerability to revenue or margin shocks. Higher leverage raises interest burden and restricts strategic options, potentially pressuring credit metrics and limiting the company’s ability to invest or weather industry headwinds over the medium term.

Bafna Pharmaceuticals Limited Business Overview & Revenue Model

Company Description

Bafna Pharmaceuticals Limited (BAFNAPH) is a prominent player in the pharmaceutical industry, primarily engaged in the manufacturing and marketing of a diverse range of pharmaceutical formulations. The company operates in various sectors, including generic pharmaceuticals, active pharmaceutical ingredients (APIs), and over-the-counter (OTC) products. Bafna Pharmaceuticals focuses on delivering high-quality, cost-effective medications to meet the healthcare needs of patients globally, with a strong emphasis on research and development to innovate its product offerings.

How the Company Makes Money

Bafna Pharmaceuticals Limited generates revenue through multiple streams, primarily from the sale of its pharmaceutical products, including generic drugs, branded formulations, and APIs. The company benefits from a robust distribution network that enables it to reach both domestic and international markets effectively. Key revenue streams include sales from its extensive portfolio of prescription medications and OTC products. Additionally, Bafna Pharmaceuticals may engage in strategic partnerships and collaborations with other pharmaceutical companies, healthcare providers, and distributors, which can enhance its market reach and lead to increased sales. The company’s focus on quality and regulatory compliance also allows it to access various markets, contributing positively to its earnings.

Bafna Pharmaceuticals Limited Financial Statement Overview

Summary

Strong multi-year revenue growth and a generally sound equity base support the profile, but recent margin compression, softer net income, and volatile/weak free cash flow (including a negative trend) reduce the score.

Income Statement

Bafna Pharmaceuticals Limited has shown impressive revenue growth from 2020 to 2025, with a remarkable increase in total revenue. However, the company has experienced declining gross profit and net income in the most recent year compared to the prior year. The net profit margin and EBIT margin have also compressed, indicating pressure on profitability. Despite these challenges, the historical growth trajectory supports a positive outlook.

Balance Sheet

The company's balance sheet shows a stable equity base with positive growth over the years. The debt-to-equity ratio remains moderate, suggesting manageable leverage. However, a decrease in equity ratio suggests a slight increase in leverage risk. Overall, the company maintains a sound financial position, but attention is needed on debt levels.

Cash Flow

The cash flow analysis reveals fluctuating free cash flow with a recent negative trend, indicating potential liquidity challenges. Although operating cash flow has recovered in recent years, the free cash flow remains volatile with a negative growth rate. The company needs to focus on enhancing cash flow stability to support operations and investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.47B	1.46B	1.52B	1.15B	851.40M	712.18M
Gross Profit	410.17M	168.77M	452.15M	387.56M	338.60M	257.62M
EBITDA	160.66M	117.73M	146.34M	189.88M	112.34M	103.94M
Net Income	82.65M	41.52M	73.48M	113.38M	52.16M	58.27M
Balance Sheet
Total Assets	0.00	1.53B	1.48B	1.30B	901.45M	864.66M
Cash, Cash Equivalents and Short-Term Investments	34.33M	34.33M	13.96M	78.09M	194.00K	18.04M
Total Debt	0.00	281.99M	243.89M	229.24M	110.59M	130.00M
Total Liabilities	-848.07M	682.73M	668.43M	561.29M	281.81M	296.95M
Stockholders Equity	848.07M	848.07M	808.39M	734.55M	619.64M	567.71M
Cash Flow
Free Cash Flow	0.00	-23.31M	-60.93M	-32.66M	21.87M	-197.04M
Operating Cash Flow	0.00	195.29M	94.85M	49.52M	97.28M	-136.09M
Investing Cash Flow	0.00	-213.02M	-150.54M	-74.93M	-65.44M	-53.45M
Financing Cash Flow	0.00	38.09M	-8.45M	101.77M	-48.15M	122.80M

Bafna Pharmaceuticals Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 154.65
• 50DMA: Negative
• 100DMA: Negative
• 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:BAFNAPH, the sentiment is Negative. The current price of 154.65 is above the 20-day moving average (MA) of 127.66, above the 50-day MA of 143.35, and above the 200-day MA of 117.18, indicating a bearish trend. The MACD of -9.24 indicates Positive momentum. The RSI at 32.06 is Neutral, neither overbought nor oversold. The STOCH value of 25.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BAFNAPH.

Bafna Pharmaceuticals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALPA	70 Neutral	₹1.45B	7.76	―	―	14.53%	-10.49%
BAFNAPH	58 Neutral	₹2.72B	31.00	―	―	-0.77%	2055.99%
BALPHARMA	58 Neutral	₹1.07B	13.16	―	1.62%	-9.07%	5.36%
MANGALAM	55 Neutral	₹574.41M	-1.86	―	―	-24.55%	-310.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AAREYDRUGS	48 Neutral	₹1.97B	54.94	―	―	-17.47%	-50.07%
KREBSBIO	41 Neutral	₹1.28B	-4.66	―	―	-46.31%	-26.28%

Bafna Pharmaceuticals Limited Corporate Events

Bafna Pharmaceuticals Files SEBI Dematerialisation Compliance Certificate for Q3 FY2025

Bafna Pharmaceuticals Limited has submitted to the stock exchanges a compliance certificate for the quarter ended 31 December 2025 under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, confirming the handling of its securities in dematerialised form. Its registrar and share transfer agent, Cameo Corporate Services Limited, certified that all securities received for dematerialisation during the quarter were duly confirmed, listed on the relevant stock exchanges, and that physical certificates were cancelled and replaced in the company’s records with the depositories as registered owners within the prescribed timelines, underscoring the company’s adherence to regulatory requirements in share transfer and depository processes.