Indoco Remedies Limited (INDOCO) AI Stock Analysis

• Market Cap: ₹25.20B
• Dividend Yield: 0.08%
• Average Volume (3M): 38.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -2.81%
• EPS Growth: -444.69%
• Country: IN
• Employees: 6,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.80
• Shares Outstanding: 92,247,900
• 10 Day Avg. Volume: 7,145
• 30 Day Avg. Volume: 38,334
• PEG Ratio: 0.16
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 1.26
• P/FCF Ratio: -6.38
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Neutral
• Price Target: ₹239.00 ▼(-6.26% Downside)

Indoco Remedies Limited is facing significant financial and operational challenges, as reflected in its poor financial performance and bearish technical indicators. The negative P/E ratio and low dividend yield further highlight valuation concerns. The stock's overall score is primarily driven by these factors, indicating a need for caution.

Positive Factors

Diverse Product Portfolio

A diverse product portfolio across various therapeutic segments helps mitigate risk and capture a broader market, supporting long-term stability.

International Market Reach

International sales provide revenue diversification and growth opportunities, reducing reliance on the domestic market and enhancing resilience.

Strategic Partnerships

Strategic partnerships can drive innovation and expand market presence, offering competitive advantages and fostering sustainable growth.

Negative Factors

Declining Revenue

A consistent decline in revenue signals potential market share loss and operational challenges, impacting long-term financial health.

Negative Cash Flow

Negative cash flow indicates difficulties in sustaining operations and funding growth, posing risks to financial stability and flexibility.

Rising Debt Levels

Increased debt levels can strain financial resources, limiting the company's ability to invest in growth and manage economic downturns.

Indoco Remedies Limited Business Overview & Revenue Model

Company Description

Indoco Remedies Limited (INDOCO) is a prominent Indian pharmaceutical company engaged in the manufacture and marketing of a diverse range of pharmaceutical formulations, including prescription medications, over-the-counter (OTC) products, and active pharmaceutical ingredients (APIs). The company operates primarily in the sectors of pharmaceuticals and healthcare, focusing on therapeutic areas such as cardiology, dermatology, and gynecology. Indoco is known for its commitment to research and development, which supports its extensive portfolio of high-quality products that cater to both domestic and international markets.

How the Company Makes Money

Indoco Remedies generates revenue through multiple key streams, including the sale of pharmaceutical formulations, active pharmaceutical ingredients, and contract manufacturing services. The company leverages a robust distribution network to reach healthcare providers, hospitals, and pharmacies, primarily in India and various international markets. Additionally, partnerships with global pharmaceutical companies for contract manufacturing bolster its earnings by allowing Indoco to utilize its manufacturing capabilities for third-party clients. The company's investment in R&D further enhances its revenue potential by enabling the development of innovative products that meet evolving healthcare needs.

Indoco Remedies Limited Financial Statement Overview

Summary

Indoco Remedies Limited has faced significant financial challenges in 2025, with declining revenue, negative profitability, and cash flow constraints. The increase in debt levels poses a risk to financial stability, while operational struggles are evident in the income statement. The company needs to address these issues to improve its financial health and return to a positive growth trajectory.

Income Statement

The company experienced a decrease in revenue from 2024 to 2025 and reported a negative net income in 2025, indicating challenges in maintaining profitability. Gross profit margin decreased significantly in 2025, and both EBIT and EBITDA margins were negative, highlighting operational struggles. Prior years showed better profitability, but the recent performance suggests a downward trajectory.

Balance Sheet

The debt-to-equity ratio increased due to rising debt levels, indicating higher financial leverage. The equity ratio remained stable, suggesting moderate balance sheet stability. However, return on equity dropped significantly due to negative net income in 2025, reflecting inefficiencies in generating returns for shareholders.

Cash Flow

The company reported negative free cash flow in 2025, indicating cash outflows exceeding inflows. Operating cash flow to net income ratio worsened, reflecting challenges in converting earnings to actual cash. The free cash flow to net income ratio was negative, further emphasizing cash management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.54B	16.65B	17.88B	16.40B	15.04B	12.19B
Gross Profit	9.06B	6.59B	6.03B	11.01B	10.24B	8.59B
EBITDA	760.80M	1.06B	2.67B	2.88B	3.25B	2.27B
Net Income	-1.12B	-737.40M	984.60M	1.42B	1.55B	930.46M
Balance Sheet
Total Assets	0.00	24.30B	21.45B	16.58B	14.86B	13.15B
Cash, Cash Equivalents and Short-Term Investments	170.70M	153.17M	221.00M	119.25M	416.17M	115.18M
Total Debt	0.00	9.94B	6.72B	3.33B	2.57B	2.67B
Total Liabilities	-10.18B	14.12B	10.34B	6.30B	5.81B	5.46B
Stockholders Equity	10.18B	10.22B	11.10B	10.28B	9.05B	7.69B
Cash Flow
Free Cash Flow	0.00	-3.28B	-2.71B	-284.30M	485.05M	53.73M
Operating Cash Flow	0.00	278.90M	1.55B	1.79B	1.74B	822.22M
Investing Cash Flow	0.00	-3.44B	-4.38B	-2.08B	-1.21B	-666.93M
Financing Cash Flow	0.00	3.09B	3.19B	228.10M	-443.72M	-298.73M

Indoco Remedies Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 254.95
• 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:INDOCO, the sentiment is Negative. The current price of 254.95 is below the 20-day moving average (MA) of 263.26, below the 50-day MA of 279.45, and below the 200-day MA of 271.28, indicating a bearish trend. The MACD of -6.62 indicates Negative momentum. The RSI at 39.66 is Neutral, neither overbought nor oversold. The STOCH value of 34.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INDOCO.

Indoco Remedies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALEMBICLTD	74 Outperform	₹26.25B	8.29	―	2.40%	16.53%	4.37%
ADVENZYMES	65 Neutral	₹35.12B	25.64	―	1.68%	14.11%	7.47%
SMSPHARMA	65 Neutral	₹24.95B	33.41	―	0.13%	11.91%	36.92%
ZOTA	52 Neutral	₹47.57B	―	―	0.07%	82.58%	-63.05%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PANACEABIO	41 Neutral	₹26.48B	230.65	―	―	9.78%	50.78%
INDOCO	40 Neutral	₹25.20B	-22.46	―	0.08%	-2.81%	-444.69%

Indoco Remedies Limited Corporate Events

Indoco Remedies Promoters Strengthen Control with Major Share Acquisition

Indoco Remedies Limited has announced a substantial acquisition of shares by its promoters, Aditi Milind Panandikar and Aruna Suresh Kare, through the Kare Family Private Trust (KFPT). This acquisition involves both direct and indirect purchases, including significant stakes in the promoter company Shanteri Investment Private Limited (SIPL), which will enhance KFPT’s influence in Indoco Remedies. This move is likely to strengthen the promoters’ control over the company and could have implications for its strategic direction and shareholder dynamics.

Indoco Remedies Approves Rs. 25 Crore Corporate Guarantee for Subsidiary

Indoco Remedies Limited has announced the approval of a corporate guarantee up to Rs. 25 Crores for its wholly owned subsidiary, Warren Remedies Private Limited. This guarantee, provided in favor of HDFC Bank Limited, supports loan and credit facilities for Warren Remedies and creates a contingent liability for Indoco Remedies, potentially impacting its financial statements.

Indoco Remedies Clarifies Market-Driven Volume Surge

Indoco Remedies Limited has observed a significant increase in trading volume and has clarified that this is due to market conditions beyond its control. The company assures that it has consistently complied with regulatory obligations and has not withheld any material information that could impact its stock price or volume.

Indoco Remedies Executes Sale and Leaseback Agreement for Strategic Asset Management

Indoco Remedies Limited has entered into a sale and leaseback agreement for part of its movable properties at the Waluj Facility and AnaCipher Clinical Research Organisation. This strategic move, involving OPC Asset Solution Pvt. Ltd, allows Indoco to continue using these assets without impacting its manufacturing or business operations, ensuring operational continuity while optimizing financial resources.