Bal Pharma Limited (BALPHARMA) AI Stock Analysis

• Market Cap: ₹1.07B
• Dividend Yield: 1.62%
• Average Volume (3M): 4.08K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.51
• Revenue Growth: -9.07%
• EPS Growth: 5.36%
• Country: IN
• Employees: 868
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.45
• Shares Outstanding: 15,920,872
• 10 Day Avg. Volume: 4,315
• 30 Day Avg. Volume: 4,084
• PEG Ratio: -6.10
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -9.00
• 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: ₹70.00 ▼(-5.29% Downside)

Bal Pharma Limited's overall stock score is primarily influenced by its financial performance and technical analysis. The company shows moderate growth but faces profitability and cash flow challenges. The technical indicators suggest a bearish trend, while the valuation appears fair. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Product / Revenue Diversification

Bal Pharma's dual model of formulations plus API manufacturing provides durable revenue diversification across customer types and geographies. This reduces single-market exposure, supports cross-selling and contract manufacturing opportunities, and stabilizes cash generation across product cycles.

Stable Gross Margins

Consistently stable gross margins suggest effective cost controls in manufacturing and supply chain execution. That structural margin resilience helps absorb pricing pressure in generics, supports reinvestment in capacity or R&D, and underpins long-term operating sustainability.

Improving ROE

An improving ROE indicates the company is generating better returns on shareholder equity, signaling improved operational efficiency or profitable deployment of capital. Sustained ROE gains can attract long-term capital and validate management's capital allocation choices.

Negative Factors

High Leverage

Material reliance on debt raises interest and refinancing risk, reducing financial flexibility to invest or weather demand shocks. High leverage can amplify earnings volatility, constrain strategic choices like capacity expansion, and pressure credit metrics during downturns.

Inconsistent Cash Generation

Volatile operating cash flow and intermittent negative free cash flow weaken the company's ability to fund capital spending, repay debt, or sustain dividends from operations. Persistent cash volatility can force reliance on external financing and limit long-term investment plans.

Weak Net Profit Conversion

Low net profit margins indicate difficulty converting sales into retained earnings after operating costs, interest and taxes. Structurally thin margins leave limited buffer against raw material inflation, regulatory or pricing pressures, and hamper the buildup of internal reserves for growth.

Bal Pharma Limited Business Overview & Revenue Model

Company Description

Bal Pharma Limited manufactures and markets pharmaceutical formulations and active pharmaceutical ingredients (APIs) in India and internationally. The company offers prescription drugs, generics, OTC products, intravenous infusion products, and bulk actives. It provides anti-infectives, pain management, respiratory care, and women's health products under the Aziwin, Ebay, Balvibe, MNF, Ocium, and Monogesic Plus Gel brands; diabetic care products under the Diabend and Diabend M Group brands; herbal/ayurvedic preparations targeting conditions, such as prostrate enlargement, renal calculi, male infertility, women health, etc. under the Stonex, Ashwamed, Prostowin, Suswas, Menoleap, and Ayursulin brands; anti-hypertensive, anti-lipidemic, and anti-obese products; skin care and bone health products; and cardiac care products under the Secremet and Servace brands. The company also offers a range of APIs for therapeutic areas, such as anti-histamine, platelet inhibitor, anti-diabetic, anti convulsant, urinary incontinence, neuropathic pain, anti-allergy, anti-inflammatory, diuretic, acne treatment, etc.; and various formulations. In addition, it engages in the treatment of gastrointestinal disorders; and piles, fistula, and constipation. The company exports its products to Europe, Latin America, Africa, the Far East, the Middle East, and internationally. Bal Pharma Limited was incorporated in 1987 and is based in Bengaluru, India.

How the Company Makes Money

Bal Pharma generates revenue through multiple streams, primarily by selling its pharmaceutical products to wholesalers, hospitals, and pharmacies both domestically and internationally. The company earns significant income from the sales of prescription drugs across different therapeutic categories. Additionally, Bal Pharma engages in contract manufacturing for other pharmaceutical companies, which contributes to its revenue. Strategic partnerships with healthcare providers and distributors enhance its market reach and allow for more effective sales channels. The company also invests in research and development to introduce new products, which can lead to higher sales and market share in competitive therapeutic areas.

Bal Pharma Limited Financial Statement Overview

Summary

Bal Pharma Limited demonstrates moderate growth with stable gross margins. However, the company faces profitability challenges and high leverage, which could pose risks in downturns. Cash flow inconsistency further impacts financial stability, requiring improved cash management strategies.

Income Statement

Bal Pharma Limited shows moderate revenue growth over the years, with an increase from 2020 to 2024. The gross profit margin has been relatively stable, indicating decent cost management. However, the net profit margin is low, which suggests challenges in converting revenue into net income. The EBIT and EBITDA margins have seen fluctuations, reflecting operational efficiency issues.

Balance Sheet

The company's debt-to-equity ratio is high, indicating significant leverage which could pose risk if not managed well. ROE has improved annually, showing better returns on shareholder equity. The equity ratio is relatively low, suggesting a higher reliance on debt to finance assets.

Cash Flow

Operating cash flow has been inconsistent, with a significant drop in 2025 compared to previous years. Free cash flow has also faced volatility, turning negative in some years. The ratios of cash flows to net income indicate challenges in cash generation relative to earnings, potentially impacting liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.95B	3.03B	3.39B	3.04B	2.81B	2.47B
Gross Profit	1.25B	730.18M	770.20M	1.25B	1.11B	993.03M
EBITDA	312.60M	317.63M	320.23M	245.00M	239.71M	257.82M
Net Income	71.58M	72.15M	73.92M	25.72M	56.12M	47.42M
Balance Sheet
Total Assets	0.00	3.36B	3.20B	3.13B	2.61B	2.40B
Cash, Cash Equivalents and Short-Term Investments	105.19M	105.19M	199.29M	74.63M	60.84M	39.71M
Total Debt	0.00	1.50B	1.42B	1.33B	1.07B	1.12B
Total Liabilities	-774.04M	2.58B	2.50B	2.49B	2.02B	1.87B
Stockholders Equity	774.04M	774.16M	692.94M	637.89M	586.27M	535.81M
Cash Flow
Free Cash Flow	11.28M	-145.55M	118.26M	-164.89M	192.39M	183.68M
Operating Cash Flow	88.16M	42.32M	228.06M	-18.43M	277.08M	217.81M
Investing Cash Flow	27.27M	-156.53M	-188.91M	-221.82M	-94.85M	-49.80M
Financing Cash Flow	-130.00M	90.12M	-12.06M	244.00M	-181.34M	-166.32M

Bal Pharma Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 73.91
• 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:BALPHARMA, the sentiment is Negative. The current price of 73.91 is above the 20-day moving average (MA) of 70.38, above the 50-day MA of 72.52, and below the 200-day MA of 87.38, indicating a bearish trend. The MACD of -1.59 indicates Positive momentum. The RSI at 36.06 is Neutral, neither overbought nor oversold. The STOCH value of 30.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BALPHARMA.

Bal Pharma Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BALPHARMA	58 Neutral	₹1.07B	13.16	―	1.62%	-9.07%	5.36%
BAFNAPH	58 Neutral	₹2.72B	31.00	―	―	-0.77%	2055.99%
MANGALAM	55 Neutral	₹574.41M	-1.86	―	―	-24.55%	-310.57%
VAISHALI	54 Neutral	₹854.32M	-271.09	―	―	18.35%	-154.65%
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%