Entero Healthcare Solutions Limited (ENTERO) AI Stock Analysis

• Market Cap: ₹44.59B
• Dividend Yield: N/A
• Average Volume (3M): 6.57K
• Price to Earnings (P/E): 40.4
• Beta (1Y): 0.91
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 3,240
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 8.05
• Shares Outstanding: 43,510,937
• 10 Day Avg. Volume: 6,792
• 30 Day Avg. Volume: 6,572
• PEG Ratio: 0.52
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 0.99
• P/FCF Ratio: -54.79
• 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: ₹1,350.00
• Price Target Upside: 16.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 33.05
• Revenue Forecast (FY): ₹65.32B

• Rating: 47 Neutral
• Price Target: ₹1,047.00 ▼(-9.32% Downside)
• Action: N/A Date: 02/24/26
• Date: Action: N/A 02/24/26

The score is held back primarily by weak financial quality—cash flow remains consistently negative despite the recent accounting profitability turnaround—alongside bearish technicals with the stock trading below key moving averages. A high P/E further limits upside unless growth and cash conversion improve meaningfully.

Positive Factors

Revenue scale & profitability recovery

A multi-year revenue ramp and a return to reported net income in 2024–2025 signal that distribution scale and commercial reach are maturing. Sustained top-line growth supports operating leverage, supplier negotiating power, and the ability to reinvest in logistics and service capabilities over the medium term.

Improved balance sheet / low leverage

Lower leverage and a stronger equity base reduce refinancing and liquidity risk, improving resilience to cyclical pressures. This structural improvement supports longer-term investment in warehousing, technology and credit to customers, and reduces the probability of forced asset sales or dilutive financing.

Integrated distribution & supply-chain model

A vertically integrated distribution and managed-services model creates recurring service revenue, higher switching costs, and closer manufacturer/customer ties. Over time this can deepen market share, enable cross-sell of value-added services, and stabilize revenue even if product mix shifts.

Negative Factors

Persistent negative operating cash flow

Consistent negative operating and free cash flow means accounting profits are not converting to cash. That structurally raises funding and liquidity risk, forces reliance on external capital or working-capital financing, and constrains the company’s ability to sustainably invest in capex or absorb margin shocks.

Gross margin compression & volatility

Narrowing and volatile gross margins reduce the buffer against higher costs or price competition. Structural margin pressure limits free cash flow potential and the ability to fund growth from operations, making long-term earnings and return improvement contingent on margin stabilization or higher-margin service mix.

Modest returns on equity

Modest ROE despite a larger equity base indicates the company is not yet generating strong returns on invested capital. Over the medium term this can limit shareholder value creation and suggests management must improve operating margins or capital efficiency to justify continued equity expansion.

Entero Healthcare Solutions Limited Business Overview & Revenue Model

Company Description

Entero Healthcare Solutions Limited engages in the trading of pharmaceutical and surgical products to retail pharmacies, hospitals, nursing homes, and healthcare clinics in India. It is involved in the distribution of medical devices, over the counter medical products, nutraceuticals, and vaccines. The company was incorporated in 2018 and is based in Mumbai, India.

How the Company Makes Money

Entero primarily makes money through the distribution of pharmaceutical and healthcare products: it purchases products from pharmaceutical/healthcare manufacturers and sells them onward to downstream customers (such as pharmacies, hospitals, and other healthcare outlets), earning a gross margin (trade margin) on the spread between its purchase price and selling price. In addition to product distribution margins, the company can generate revenue from supply-chain and channel services provided to manufacturers and/or customers, such as warehousing, transportation/logistics, inventory management, and other managed distribution services where fees are earned for service delivery. The company’s earnings are influenced by distribution scale (volumes handled), product mix (higher- vs lower-margin categories), working-capital efficiency (inventory and receivables management), and commercial terms negotiated with manufacturers (including any discounts, incentives, or performance-linked arrangements). Specific disclosure on the exact revenue split by stream, named major partnerships, or the precise fee structures is null.

Entero Healthcare Solutions Limited Financial Statement Overview

Summary

Financials are improving on paper with material revenue scaling and a return to positive net income in 2024–2025, supported by a healthier, lower-leverage balance sheet. However, persistent negative operating and free cash flow across all years (including 2024–2025) is a major risk to earnings quality and funding needs, and 2025 gross margin compression highlights volatility.

Income Statement

Revenue has scaled materially from 2020 to 2025, with 2025 showing mid-single-digit growth after a very strong multi-year ramp. Profitability has improved meaningfully versus the loss-making years (2021–2023), with 2024–2025 returning to positive net income and stronger operating profit. Offsetting this, margins are thin and volatile—gross margin fell sharply in 2025 versus 2024, which increases sensitivity to pricing and cost pressures.

Balance Sheet

Leverage looks manageable with low debt relative to equity in 2024–2025, a clear improvement from the higher leverage profile seen in 2022–2023. Equity has grown significantly over time, supporting a stronger capital base and improving resilience. The main watch item is that returns on equity, while now positive, remain modest—suggesting profitability is improving but not yet strong relative to the balance sheet size.

Cash Flow

Cash generation is the weakest area: operating cash flow is negative in every year shown, including 2024 and 2025, and free cash flow is also consistently negative. This indicates earnings are not translating into cash and the business appears to be consuming cash to fund working capital and/or investment needs. While profitability has turned positive recently, the persistent cash burn raises funding and liquidity risk if it continues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	56.73B	50.96B	39.22B	33.00B	25.15B	17.73B
Gross Profit	5.04B	2.57B	3.48B	1.10B	2.03B	1.35B
EBITDA	2.36B	2.11B	1.26B	694.76M	260.38M	254.57M
Net Income	1.11B	948.20M	391.09M	-115.57M	-299.20M	-155.37M
Balance Sheet
Total Assets	28.51B	27.03B	23.45B	14.04B	11.26B	8.34B
Cash, Cash Equivalents and Short-Term Investments	3.49B	3.18B	7.88B	1.07B	1.05B	828.24M
Total Debt	4.43B	4.05B	3.38B	4.38B	3.55B	2.03B
Total Liabilities	10.55B	9.32B	7.04B	7.76B	5.63B	3.47B
Stockholders Equity	17.66B	17.24B	16.38B	6.23B	5.61B	4.85B
Cash Flow
Free Cash Flow	-678.96M	-916.38M	-420.28M	-508.34M	-451.32M	-782.13M
Operating Cash Flow	-572.73M	-803.24M	-366.12M	-453.15M	-352.66M	-686.84M
Investing Cash Flow	-549.08M	1.82B	-7.05B	-485.95M	-1.62B	-308.69M
Financing Cash Flow	-393.12M	-320.99M	8.63B	727.64M	2.11B	887.13M

Entero Healthcare Solutions Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THYROCARE	69 Neutral	₹57.58B	61.22	―	0.68%	22.36%	52.00%
HCG	67 Neutral	₹82.21B	-247.47	―	―	17.58%	-38.20%
YATHARTH	66 Neutral	₹63.33B	36.23	―	―	27.65%	4.02%
MEDIASSIST	54 Neutral	₹23.82B	205.09	―	0.92%	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PANACEABIO	51 Neutral	₹19.44B	144.78	―	―	9.78%	50.78%
ENTERO	47 Neutral	₹44.59B	40.42	―	―	―	―

Entero Healthcare Solutions Limited Corporate Events

Entero Healthcare Subsidiary Faces Three-Day Drug Licence Suspension

Entero Healthcare Solutions Limited has disclosed that the Senior Drugs Control Officer cum Licensing Authority, Karnal Zone, has temporarily suspended the drug licenses of its wholly owned subsidiary, Atreja Healthcare Solutions Private Limited, for three days from January 30 to February 1, 2026, due to contraventions of the Drugs and Cosmetics Act, 1940 and related rules in the conduct of Atreja’s business. The company stated that the suspension is an administrative action with no material impact on Entero’s overall financials, operations, or other activities as a listed entity, though it anticipates a potential revenue loss of about Rs 1.88 million from the brief suspension, signaling limited operational and financial implications for stakeholders.

Entero Healthcare’s Statutory Auditor Converts to LLP Without Change in Audit Tenure

Entero Healthcare Solutions Limited has announced that its statutory auditor, M S K A & Associates, Chartered Accountants, has converted from a partnership firm into a Limited Liability Partnership under the Limited Liability Partnership Act, 2008, and will now operate as M S K A & Associates LLP, Chartered Accountants. The company stated that this conversion will not affect the existing audit engagement, with M S K A & Associates LLP continuing in its role as statutory auditor for the remainder of its current tenure, implying continuity in financial oversight and no disruption to the company’s audit and compliance processes.