Bajaj Healthcare Ltd (BAJAJHCARE) AI Stock Analysis

• Market Cap: ₹10.96B
• Dividend Yield: 0.24%
• Average Volume (3M): 4.99K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.88
• Revenue Growth: 13.04%
• EPS Growth: N/A
• Country: IN
• Employees: 1,049
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 4.96
• Shares Outstanding: 31,583,252
• 10 Day Avg. Volume: 2,706
• 30 Day Avg. Volume: 4,987
• PEG Ratio: -0.38
• Price to Book (P/B): 4.64
• Price to Sales (P/S): 3.98
• P/FCF Ratio: -124.79
• 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: 51 Neutral
• Price Target: ₹349.00 ▼(-16.61% Downside)

Bajaj Healthcare Ltd's overall stock score reflects significant financial and technical challenges. The company's high leverage and inconsistent cash flow management are primary concerns. Technical indicators suggest bearish momentum, with the stock trading below key moving averages. Valuation metrics indicate the stock may be overvalued, with a high P/E ratio and low dividend yield. These factors combined result in a cautious outlook for the stock.

Positive Factors

Business model diversification

Bajaj Healthcare's integrated API and finished-formulation business creates multiple revenue streams and operational synergies. Manufacturing breadth supports B2B contract volumes and captive formulations, buffering demand swings and enabling longer-term margin recovery through scale and mix optimization.

Export market exposure

Access to export markets diversifies demand beyond domestic cyclicality and can enable access to higher-value regulated customers. Sustained export sales help stabilize top-line growth and support investment in compliance and capacity that underpin durable competitive positioning over the medium term.

Revenue growth trend

Reported ~17% revenue growth signals underlying demand traction and potential for fixed-cost absorption across manufacturing. If sustained, this growth supports margin improvement and capacity utilization, making operational leverage a structural tailwind for cash generation and profitability over the next several quarters.

Negative Factors

High financial leverage

Elevated leverage limits financial flexibility, increases interest and refinancing risk, and constrains capital allocation for capex or R&D. Over a multi-quarter horizon, persistent high debt can amplify earnings volatility and reduce resilience to demand slowdowns or input-cost shocks.

Inconsistent cash conversion

Weak and inconsistent operating cash flow means profits are not reliably converted to liquid resources, raising reliance on external financing. Structural cash conversion issues impede deleveraging, limit reinvestment capacity, and increase vulnerability to funding-market disruptions over the medium term.

Margin and revenue volatility

Declining gross and EBIT margins alongside volatile revenue indicate cost-pressure or pricing challenges that weaken sustainable profitability. Such structural margin erosion reduces internal cash generation and complicates medium-term planning for capacity, product development, and contract competitiveness.

Bajaj Healthcare Ltd Business Overview & Revenue Model

Company Description

Bajaj HealthCare Limited, a pharmaceutical company, develops, manufactures, and supplies amino acids, nutritional supplements, and active pharmaceutical ingredients (APIs) for pharmaceutical, nutraceuticals, and food industries in India and internationally. The company's product portfolio consists of various APIs in the therapeutic categories of anti-diabetic, antibiotic, antiviral, antiplatelet, antifungal, antihelmintic, iron-chelating agent, anticonvulsant, growth stimulant, non-steroidal anti-inflammatory drugs, antihypertensive, anthelmintics, anti-asthmatic, antioxidant, urinary tract infection, anti-histamine, weight reducing, venous disease, antimalarial, vitamin c, disinfectant/ antiseptic, stimulant, anticonvulsant, lipotropic agents, nootropic, vasoprotective/ antihemorrhagic, cardiovascular agent, food supplements, anti-anemic, amino acids, antiasthmatic / bronchodilator, nutritional supplement, and minerals. It also provides formulations in the form of tablets, capsules, and powder, as well as impurities. In addition, the company exports its products. Bajaj HealthCare Limited was incorporated in 1993 and is based in Thane, India.

How the Company Makes Money

Bajaj Healthcare generates revenue primarily through the sale of its pharmaceutical products, including APIs and finished formulations, to various clients, including pharmaceutical companies and distributors. The company has established key partnerships with domestic and international pharmaceutical firms, which contribute significantly to its revenue streams. Additionally, Bajaj Healthcare benefits from contract manufacturing agreements that allow it to produce products for other companies, further diversifying its income sources. The company also invests in research and development to innovate new products and expand its market reach, which plays a crucial role in driving its earnings.

Bajaj Healthcare Ltd Financial Statement Overview

Summary

Bajaj Healthcare Ltd shows a mixed financial performance, with moderate profitability but significant leverage and cash flow management challenges. The income statement demonstrates some recovery in net income, while the balance sheet indicates high leverage. Cash flow trends suggest potential liquidity risks. The company needs to focus on improving cash generation and managing debt levels to enhance financial stability.

Income Statement

The company's revenue has shown fluctuating growth over recent years, with a decline in 2025 compared to 2023. Gross profit margin and EBIT margin have decreased, indicating potential cost management issues. However, the net profit margin improved in 2025, recovering from negative profitability in 2024. Overall, the income statement reflects moderate profitability with some volatility in revenue growth.

Balance Sheet

The debt-to-equity ratio is relatively high, indicating significant leverage which could pose financial risks. Return on equity has been inconsistent, reflecting variability in net income. The equity ratio has improved, indicating a healthier balance between debt and assets, but the overall leverage remains a concern.

Cash Flow

Cash flow from operations has been inconsistent, with negative free cash flow in recent years. The operating cash flow to net income ratio is concerning, indicating challenges in converting profits into cash. Financing cash flows have been positive, suggesting reliance on external financing. Overall, cash flow management presents a potential area of concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.59B	5.43B	4.73B	6.46B	6.79B	6.56B
Gross Profit	2.35B	1.71B	2.14B	1.33B	1.84B	1.93B
EBITDA	1.02B	1.02B	406.24M	1.22B	1.20B	1.43B
Net Income	441.97M	394.95M	-837.93M	430.24M	713.86M	831.09M
Balance Sheet
Total Assets	0.00	8.33B	7.65B	9.01B	7.21B	5.26B
Cash, Cash Equivalents and Short-Term Investments	44.51M	44.51M	29.29M	192.29M	19.75M	142.41M
Total Debt	0.00	2.23B	3.33B	4.15B	2.57B	1.81B
Total Liabilities	-4.66B	3.67B	4.87B	5.34B	3.93B	2.67B
Stockholders Equity	4.66B	4.66B	2.78B	3.68B	3.28B	2.58B
Cash Flow
Free Cash Flow	0.00	-173.16M	620.08M	-1.46B	-786.19M	-702.30M
Operating Cash Flow	0.00	-57.78M	922.94M	-223.24M	6.86M	435.58M
Investing Cash Flow	0.00	-153.21M	-112.45M	-934.27M	-747.98M	-1.09B
Financing Cash Flow	0.00	215.28M	-965.96M	1.31B	618.46M	754.57M

Bajaj Healthcare Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 418.50
• 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:BAJAJHCARE, the sentiment is Negative. The current price of 418.5 is above the 20-day moving average (MA) of 377.99, above the 50-day MA of 402.97, and below the 200-day MA of 471.07, indicating a bearish trend. The MACD of -18.32 indicates Positive momentum. The RSI at 34.36 is Neutral, neither overbought nor oversold. The STOCH value of 24.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BAJAJHCARE.

Bajaj Healthcare Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BLISSGVS	74 Outperform	₹18.71B	17.02	―	0.28%	7.51%	71.81%
JAGSNPHARM	67 Neutral	₹11.30B	27.54	―	1.24%	24.60%	153.56%
SYNCOMF	67 Neutral	₹12.10B	19.19	―	―	56.41%	90.24%
HESTERBIO	61 Neutral	₹12.61B	30.81	―	0.44%	-3.84%	86.82%
THEMISMED	54 Neutral	₹7.41B	-27.46	―	0.48%	-18.86%	-150.92%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAJAJHCARE	51 Neutral	₹10.96B	22.01	―	0.24%	13.04%	―

Bajaj Healthcare Ltd Corporate Events

Bajaj Healthcare Publishes Q3 and Nine-Month FY26 Unaudited Results in Newspapers

Bajaj Healthcare Limited has notified the stock exchanges that it has published its unaudited financial results for the quarter and nine months ended 31 December 2025 in the Financial Express and Mumbai Lakshadweep newspapers, in line with the disclosure requirements under Regulation 47 of SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015. The move underscores the company’s adherence to regulatory transparency and ensures wider public dissemination of its latest financial performance metrics to investors and other market participants, although detailed numbers were not disclosed in the exchange communication.

Bajaj Healthcare Files SEBI Dematerialisation Compliance Certificate for December Quarter

Bajaj Healthcare Ltd has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, issued by its registrar and transfer agent MUFG Intime India Private Limited. The certificate confirms that all securities received for dematerialisation during the quarter were duly accepted or rejected, listed on the appropriate exchanges, and that corresponding physical certificates were cancelled and records updated within prescribed timelines, underscoring the company’s adherence to regulatory requirements in handling its share capital and providing assurance to investors and regulators on its securities-related processes.

Bajaj Healthcare Secures Favorable Court Ruling in GST Dispute

Bajaj Healthcare Limited announced that the Hon’ble High Court of Gujarat has quashed a demand order related to a GST matter, which was previously issued by the Joint Commissioner, Vadodara-II. This decision, dated December 6, 2025, comes after the company filed a Writ Petition challenging the order. The company stated that this ruling will not impact its financials, operations, or other activities, indicating stability for stakeholders and continued focus on its core business operations.