Bafna Pharmaceuticals Limited (BAFNAPH) AI Stock Analysis

• Market Cap: ₹2.56B
• Dividend Yield: N/A
• Average Volume (3M): 1.19K
• Price to Earnings (P/E): 48.5
• Beta (1Y): 0.29
• Revenue Growth: -0.77%
• EPS Growth: 2055.99%
• Country: IN
• Employees: 363
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.78
• 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: ₹102.00 ▼(-34.04% Downside)
• Action: Reiterated Date: 01/21/26
• Date: Action: Reiterated 01/21/26

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 top-line expansion from 2020–2025 indicates durable market demand and effective commercial execution. Multi-year revenue traction creates scale advantages, supports reinvestment in product and capacity, and raises the baseline for margin recovery and cash generation over coming quarters.

Stable balance sheet and moderate leverage

A sound equity base and moderate debt-to-equity provide financial flexibility and resilience. Manageable leverage reduces refinancing risk and preserves the ability to fund working capital, capex, or strategic moves without immediate dilution or high-cost borrowing, supporting medium-term stability.

Recovering operating cash flow

Recovery in operating cash flow signals improved core cash generation, strengthening the firm's capacity to fund operations and selective investments internally. Better operational cash conversion reduces near-term dependence on external financing and supports sustainable operations across the next several quarters.

Negative Factors

Profitability compression

Recent declines in gross profit and net income with compressed EBIT and net margins indicate margin erosion. Persistent margin pressure reduces return on invested capital, constrains reinvestment, and heightens earnings sensitivity to cost or pricing shocks, undermining durable profitability.

Volatile and negative free cash flow trend

A history of volatile free cash flow and a recent negative trend creates ongoing liquidity and funding risk. If FCF remains negative, management may need external financing for capex or operations, which would raise financing costs and limit strategic flexibility over the medium term.

Recent revenue weakness

A recently reported negative revenue growth metric signals near-term demand softness that offsets historical gains. Continued revenue contraction would erode scale benefits, delay margin recovery, and pressure cash flow and investment plans, posing a durable headwind to recovery.

Bafna Pharmaceuticals Limited Business Overview & Revenue Model

Company Description

Bafna Pharmaceuticals Limited manufactures and sells finished pharmaceutical formulations in India. The company provides delayed and sustained release, chewable, and orally disintegrating tablets. It also exports its products. Bafna Pharmaceuticals Limited was founded in 1981 and is based in Chennai, India.

How the Company Makes Money

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.42B	1.46B	1.52B	1.15B	851.40M	712.18M
Gross Profit	408.55M	168.77M	452.15M	387.56M	338.60M	257.62M
EBITDA	167.13M	117.73M	146.34M	189.88M	112.34M	103.94M
Net Income	87.72M	41.52M	73.48M	113.38M	52.16M	58.27M
Balance Sheet
Total Assets	1.61B	1.53B	1.48B	1.30B	901.45M	864.66M
Cash, Cash Equivalents and Short-Term Investments	19.67M	34.33M	13.96M	78.09M	194.00K	18.04M
Total Debt	324.03M	281.99M	243.89M	229.24M	110.59M	130.00M
Total Liabilities	694.55M	682.73M	668.43M	561.29M	281.81M	296.95M
Stockholders Equity	912.28M	848.07M	808.39M	734.55M	619.64M	567.71M
Cash Flow
Free Cash Flow	-71.04M	-23.31M	-60.93M	-32.66M	21.87M	-197.04M
Operating Cash Flow	93.13M	195.29M	94.85M	49.52M	97.28M	-136.09M
Investing Cash Flow	-149.13M	-213.02M	-150.54M	-74.93M	-65.44M	-53.45M
Financing Cash Flow	24.23M	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: Negative
• 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 109.11, above the 50-day MA of 119.79, and above the 200-day MA of 122.66, indicating a bearish trend. The MACD of -4.94 indicates Negative momentum. The RSI at 45.03 is Neutral, neither overbought nor oversold. The STOCH value of 40.07 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	60 Neutral	₹1.25B	21.48	―	―	14.53%	-10.49%
BAFNAPH	58 Neutral	₹2.56B	48.53	―	―	-0.77%	2055.99%
BALPHARMA	58 Neutral	₹1.06B	16.40	―	1.62%	-9.07%	5.36%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MANGALAM	50 Neutral	₹485.29M	-1.11	―	―	-24.55%	-310.57%
AAREYDRUGS	48 Neutral	₹1.90B	84.53	―	―	-17.47%	-50.07%
KREBSBIO	41 Neutral	₹1.05B	-11.90	―	―	-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.