Indoco Remedies Limited (INDOCO) AI Stock Analysis

• Market Cap: ₹20.05B
• Dividend Yield: 0.08%
• Average Volume (3M): 38.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Neutral
• Price Target: ₹207.00 ▼(-9.35% 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

Diversified revenue streams

Multiple durable revenue pillars (formulations, APIs, and contract manufacturing) reduce reliance on a single market or product, smoothing cash flows and providing cross-segment growth opportunities. This structural diversity supports resilience through product cycles and regulatory variations.

In-house manufacturing and R&D

Owning manufacturing and R&D capabilities provides sustained competitive advantages: faster product development, better quality control, and lower incremental costs for scale-ups. These assets underpin longer-term product pipeline delivery and margin maintenance versus pure-play marketers.

Domestic and international presence

A presence in both domestic and export markets offers structural demand diversification and access to higher-margin regulated markets. This geographical mix helps offset country-specific cycles, allows strategic market prioritization, and supports long-term topline and volume growth potential.

Negative Factors

Declining revenue and negative profitability

Sustained revenue decline and negative net income weaken the firm's ability to invest, defend market share, and fund R&D. Persistent losses erode equity and can force cost cuts or asset sales, reducing sustainable growth prospects and making recovery more difficult without structural operational fixes.

Rising financial leverage

Higher leverage increases fixed interest obligations and reduces financial flexibility, particularly risky given negative earnings. Elevated debt can constrain strategic investments, limit ability to absorb shocks, and raise refinancing risk over the next several quarters if cash generation does not improve.

Negative free cash flow and weak cash conversion

Negative FCF and deteriorating cash conversion signal that reported earnings are not translating into cash, forcing reliance on external financing or asset sales. This undermines sustainable capex, working capital funding, and shareholder returns unless operating cash flow is restored.

Indoco Remedies Limited Business Overview & Revenue Model

Company Description

Indoco Remedies Limited manufactures and sells formulations and active pharmaceutical ingredients in India and internationally. The company offers respiratory products, such as Karvol Plus, Febrex Plus, and Tuspel; stomatologicals products that include Sensodent-K, Sensoform Toothpaste, Sensoform Gum Paint, Rexidin M, Rexidin SRS, RR Sensoform Dental, Snowdent, Kidodent, Rexidin Plus, and Dentogel; gastrointestinal products, such as Carmicide, Cyclopam, Cyclomeff, and Nosic; pain/analgesics products that include Lignox and T-lac; and ophthal/otologicals products, such as Renolen, Homide, Dexoren – S, Zincoren, Otorex, Mofloren-D, and Mofloren LP. It also provides vitamins/minerals/nutrients that include Methycal, Cital UTI, SM Fibro, Cal Aid, SM Fibro, MCBM DHA, and Apispur; urology products, such as Carmicide and Cital; Cloben G and Scabex for dermatology; ATM for anti-infectives; Hemsyl for blood related; MCBM 69 and D Chiro for gynecological; and Spear for anti-haemorrhoidal. In addition, the company provides analytical services, such as impurity profile, particle size analysis, heavy metal analysis, polymorphism and compatibility studies, extractables and leachables studies, lyophilization studies, reference and working standards, forced degradation studies, and chromatographic method development and validation services. Further, it offers services that include architectural design, lighting, mechanical and utility engineering, project and construction management, electrical, control system, piping, structural design, data transfer system, and process engineering. The company serves general practitioners, pediatricians, consultant physicians, dentists, cardiologists, diabetologists, endocrinologists, gynaecologists, and ophthalmologists. The company was formerly known as Indo Continental Trading Company. Indoco Remedies Limited was founded in 1945 and is based in Mumbai, India.

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: Neutral
• Last Price: 228.35
• 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 Neutral. The current price of 228.35 is above the 20-day moving average (MA) of 216.29, below the 50-day MA of 233.28, and below the 200-day MA of 269.82, indicating a neutral trend. The MACD of -5.52 indicates Negative momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 58.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹23.87B	7.37	―	2.36%	16.53%	4.37%
ADVENZYMES	65 Neutral	₹33.19B	21.80	―	1.70%	14.11%	7.47%
SMSPHARMA	65 Neutral	₹29.73B	33.07	―	0.13%	11.91%	36.92%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PANACEABIO	51 Neutral	₹22.81B	-315.10	―	―	9.78%	50.78%
ZOTA	41 Neutral	₹39.08B	-59.95	―	0.06%	82.58%	-63.05%
INDOCO	40 Neutral	₹20.05B	-18.13	―	0.08%	-2.81%	-444.69%

Indoco Remedies Limited Corporate Events

Indoco Remedies Schedules Earnings Call for Q3 and Nine-Month FY26 Results

Indoco Remedies Limited has announced that it will host an earnings conference call to discuss its unaudited financial results for the quarter and nine months ended 31 December 2025. The call, organized in association with Nirmal Bang Institutional Equities, is scheduled for Tuesday, 3 February 2026 at 3:30 p.m. IST and will feature key members of the company’s top management, including the managing director, joint managing director and chief financial officer, underscoring the importance of the interaction for investors and analysts seeking clarity on Indoco’s financial performance and business outlook.

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.