Lincoln Pharmaceuticals Ltd (LINCOLN) AI Stock Analysis

• Market Cap: ₹11.99B
• Dividend Yield: 0.37%
• Average Volume (3M): 1.66K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 1.32
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 1,687
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 14.28
• Shares Outstanding: 20,029,728
• 10 Day Avg. Volume: 3,133
• 30 Day Avg. Volume: 1,664
• PEG Ratio: -1.14
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 1.77
• P/FCF Ratio: 14.99
• 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: 78 Outperform
• Price Target: ₹685.00 ▲(37.94% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is primarily supported by strong financial performance, especially the near-debt-free balance sheet and resilient profitability, tempered by margin compression and some cash-flow variability. Technicals are constructive but somewhat overextended and not yet above the 200-day average. Valuation is reasonable on earnings, though the dividend yield is minimal.

Positive Factors

Near-zero debt balance sheet

A near-zero debt profile and growing equity base provide durable financial flexibility: low solvency risk, capacity to fund capex or M&A from internal resources, and resilience in downturns. This structural conservatism reduces refinancing and interest-rate exposure over months.

Rebound in free cash flow

A meaningful rebound in free cash flow that now covers a large share of net income signals stronger cash conversion and capacity to self-fund growth, dividends, or deleveraging. Sustained FCF supports long-term investment flexibility and lowers external financing dependence.

Steady revenue growth and healthy gross margins

Consistent top-line expansion paired with gross margins above 50% indicate durable product economics and pricing power in core formulations. Over 2–6 months this supports reinvestment into commercial reach and R&D, and provides buffer versus input cost swings.

Negative Factors

Recent margin compression

Declining EBITDA and net margins suggest rising cost pressures or weaker pricing that can persistently reduce earnings power unless addressed. If structural (input costs, pricing pressure, mix shift), compressed margins will limit cash available for reinvestment and shareholder returns over months.

Operating cash flow below net income

OSCF consistently trailing net income signals working-capital swings or receivables/inventory timing that can strain liquidity unpredictably. This variability increases reliance on careful working-capital management and can impair the predictability of free cash flow generation in the medium term.

Earnings growth and ROE moderation

Negative EPS growth and a falling ROE indicate pressure on profitability or capital efficiency. If earnings and returns on equity remain subdued versus past levels, it may constrain reinvestment returns, slow shareholder-value creation, and reflect structural margin or competitive headwinds.

Lincoln Pharmaceuticals Ltd Business Overview & Revenue Model

Company Description

Lincoln Pharmaceuticals Limited engages in manufacturing and trading of pharmaceutical products in India and internationally. The company's product portfolio includes dermatologist preparations, gynecological products, gastrointestinal ranges, otology products, and phosphodiesterase type 5 inhibitor and general anesthetics. It provides products in the areas of cough and cold, anti-allergic, and anti-asthmatics; sterile ophthalmic eye drops and ointment; anti-malarial; vitamins, minerals, and antioxidants; anti-bacterial, anti-viral, and anti-fungal vitamins; analgesic and anti-pyretic; anti-psychotic, anti-convulsant, anti-depressant, and anti-diabetic; cardiac anti-hypertensives, and diuretic; and anti-diarrheal, anti-spasmodic, and laxative. The company also offers branded generics. Lincoln Pharmaceuticals Limited was founded in 1979 and is based in Ahmedabad, India.

How the Company Makes Money

Lincoln Pharmaceuticals makes money primarily by selling pharmaceutical products (finished-dose formulations) to customers in India and in overseas markets. Revenue is generated from (1) domestic sales through its marketing and distribution network to pharmacies, hospitals, and other healthcare channels, and (2) export sales to international customers via its presence in multiple foreign markets. Additional revenue may be earned from contract manufacturing or product licensing/registration arrangements where applicable, but specific figures, named partnerships, or the relative contribution of each stream are null.

Lincoln Pharmaceuticals Ltd Financial Statement Overview

Summary

Strong financial foundation led by an exceptionally conservative balance sheet (effectively no debt) and consistently profitable operations. Offsetting factors are 2025 margin compression versus 2024 and some variability in cash conversion versus net income, despite a sharp rebound in free cash flow.

Income Statement

Revenue has expanded steadily over the last several years, with growth accelerating in the latest annual period (2025 revenue up ~4% vs. 2024). Profitability remains strong for the industry, with gross margin above 50% and solid operating profitability; however, margins have compressed versus 2024 (net margin down from ~16.1% to ~13.2%, and EBITDA margin down from ~23.1% to ~19.9%), indicating some cost pressure and weaker earnings conversion despite higher sales.

Balance Sheet

The balance sheet is a key strength: debt is effectively negligible (including zero total debt in 2025) with a near-zero debt-to-equity profile, providing high financial flexibility and low solvency risk. Equity and total assets have grown consistently, supporting expansion. Return on equity remains healthy (~12% in 2025), though it has stepped down from the mid-teens level in 2024, reflecting softer profitability relative to the growing equity base.

Cash Flow

Cash generation is solid and improving: operating cash flow increased meaningfully in 2025 and free cash flow rebounded strongly (737.7M vs. 237.4M in 2024). Free cash flow covers a substantial portion of net income in 2025 (about 79%), signaling better cash conversion than the prior year. The main watch item is that operating cash flow remains below net income in recent periods (2025 coverage ~0.88; 2024 ~0.69), which can point to working-capital swings and some variability in cash realization.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.32B	6.23B	5.81B	5.05B	4.68B	4.15B
Gross Profit	3.03B	3.32B	2.97B	2.59B	2.46B	2.13B
EBITDA	1.24B	1.24B	1.34B	1.12B	1.05B	928.43M
Net Income	800.04M	823.46M	933.05M	728.99M	693.55M	622.50M
Balance Sheet
Total Assets	8.55B	7.97B	7.00B	5.87B	5.34B	4.52B
Cash, Cash Equivalents and Short-Term Investments	2.32B	1.96B	1.52B	1.14B	1.15B	945.06M
Total Debt	668.00K	0.00	10.67M	19.97M	20.44M	5.20M
Total Liabilities	1.39B	1.25B	1.07B	849.46M	1.01B	859.67M
Stockholders Equity	7.16B	6.72B	5.93B	5.02B	4.33B	3.66B
Cash Flow
Free Cash Flow	390.02M	737.71M	237.41M	249.80M	306.07M	605.19M
Operating Cash Flow	497.63M	930.15M	632.17M	392.62M	761.32M	692.70M
Investing Cash Flow	-422.12M	-789.47M	-573.42M	-366.43M	-780.80M	-642.27M
Financing Cash Flow	-6.86M	-64.02M	-51.80M	-45.01M	-25.56M	-57.45M

Lincoln Pharmaceuticals Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LINCOLN	78 Outperform	₹11.99B	8.47	―	0.37%	―	―
WANBURY	64 Neutral	₹8.68B	12.53	―	―	8.92%	-5.56%
THEMISMED	62 Neutral	₹7.14B	22.95	―	0.48%	-18.86%	-150.92%
ANUHPHR	62 Neutral	₹7.71B	14.99	―	1.92%	14.09%	-34.41%
KILITCH	57 Neutral	₹5.58B	34.53	―	―	32.95%	67.39%
KOPRAN	57 Neutral	₹5.69B	19.44	―	1.96%	-6.96%	-66.75%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%