Bal Pharma Limited (BALPHARMA) AI Stock Analysis

• Market Cap: ₹1.14B
• Dividend Yield: 1.62%
• Average Volume (3M): 4.08K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.48
• Revenue Growth: -9.07%
• EPS Growth: 5.36%
• Country: IN
• Employees: 868
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.12
• 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: ₹75.00 ▲(1.47% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

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

Stable gross margins & revenue growth

Consistent gross margins alongside multi-year revenue growth indicate durable product-level profitability and decent cost control. That stability helps the company withstand pricing pressure in generics and supports reinvestment in R&D or capacity, aiding sustainable earnings over 2–6 months and beyond.

Improving return on equity

A rising ROE suggests the company is deploying capital more efficiently and delivering better returns to shareholders. Sustained ROE improvement signals strengthening operational performance or mix improvement, which supports reinvestment and long-term shareholder value if leverage and cash trends are controlled.

Diversified product and market mix

Exposure to both formulations and APIs plus domestic and export channels provides diversified revenue streams and lowers single-market dependency. This structural diversification supports resilience vs regulatory or demand shocks in any one segment and enables cross-selling and scale benefits over time.

Negative Factors

High leverage

Elevated leverage reduces financial flexibility and increases refinancing and interest risks, especially if cash flows weaken. Over a multi-month horizon, high debt can constrain capex, limit pricing flexibility, and amplify downside in cyclical demand or cost inflation, pressuring long-term stability.

Inconsistent operating cash flow

Volatile and occasionally negative free cash flow undermines the company's ability to fund operations, service debt, and invest in growth from internal resources. Persistent cash-generation shortfalls force reliance on external financing and elevate execution risk across the product pipeline and capacity plans.

Low net profit margin

Low net margins indicate limited ability to convert sales into retained earnings after costs and expenses. Structurally thin profitability leaves less cushion for cost shocks, hampers cash accumulation, and constrains funding for R&D or expansion without increasing leverage or diluting shareholders.

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 makes money primarily by selling pharmaceutical products across two main lines of business: (1) finished dosage formulations and (2) APIs (active pharmaceutical ingredients). Revenue from formulations is generated through the manufacture and sale of branded and/or generic medicines to customers such as distributors, pharmacies, hospitals, and institutional buyers in India, as well as via exports where applicable. Revenue from APIs is generated by supplying bulk drug ingredients to other pharmaceutical manufacturers that use these inputs to produce finished medicines. In addition to direct product sales, the company may earn revenue through contract manufacturing/loan licensing and related business-to-business arrangements where it manufactures products for other marketing authorization holders or brand owners; however, specific details on the scale or counterparties are null. Key factors influencing earnings typically include product mix (formulations vs APIs), regulatory approvals and compliance (enabling access to certain markets), pricing and competitive intensity in generics, capacity utilization of manufacturing facilities, and the ability to maintain reliable supply chains for raw materials and intermediates. Specific significant partnerships and their contribution to revenue are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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 below the 20-day moving average (MA) of 74.63, above the 50-day MA of 72.34, and below the 200-day MA of 83.90, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 26.75 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	₹1.14B	16.40	―	1.62%	-9.07%	5.36%
BAFNAPH	58 Neutral	₹2.50B	48.53	―	―	-0.77%	2055.99%
VAISHALI	54 Neutral	₹696.75M	21.33	―	―	18.35%	-154.65%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MANGALAM	50 Neutral	₹500.49M	-1.11	―	―	-24.55%	-310.57%
AAREYDRUGS	48 Neutral	₹1.93B	84.53	―	―	-17.47%	-50.07%
KREBSBIO	41 Neutral	₹1.19B	-11.90	―	―	-46.31%	-26.28%