Medico Remedies Ltd. (MEDICO) AI Stock Analysis

• Market Cap: ₹3.25B
• Dividend Yield: N/A
• Average Volume (3M): 12.74K
• Price to Earnings (P/E): 36.5
• Beta (1Y): 0.15
• Revenue Growth: 21.55%
• EPS Growth: 47.80%
• Country: IN
• Employees: 193
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.35
• Shares Outstanding: 82,984,000
• 10 Day Avg. Volume: 20,955
• 30 Day Avg. Volume: 12,740
• PEG Ratio: 1.99
• Price to Book (P/B): 7.06
• Price to Sales (P/S): 2.92
• P/FCF Ratio: 258.26
• 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: 71 Outperform
• Price Target: ₹44.00 ▼(-12.28% Downside)
• Action: Upgraded Date: 01/24/26
• Date: Action: Upgraded 01/24/26

The score is primarily supported by solid financial performance (growth, profitability improvement, and reasonable leverage). Technicals are constructive with price above major moving averages, but tempered by a negative MACD. Valuation is the main drag due to a high P/E and no dividend yield data to offset it.

Positive Factors

Revenue & EPS Growth

Sustained double-digit revenue and EPS growth demonstrates durable demand expansion and improving unit economics. Over a multi-quarter horizon this supports reinvestment capacity, scale benefits, and stronger bargaining power with suppliers and customers, underpinning longer-term profit potential.

Healthy Margins

Consistently healthy gross margins and improving net margins indicate effective cost management and pricing discipline. These margin foundations support durable profitability even if revenue growth moderates, enabling the company to fund R&D/capex and maintain competitive positioning over the next several quarters.

Prudent Leverage & ROE

A sound balance sheet with moderate leverage and rising ROE signals disciplined capital allocation and financial flexibility. This structure supports strategic investments, withstands industry cyclicality, and reduces refinancing risk, sustaining the firm's ability to pursue growth initiatives long term.

Negative Factors

Capex Pressures on FCF

Elevated capex is materially reducing free-cash-flow conversion despite strong operating cash generation. Over a multi-quarter horizon this can constrain balance sheet flexibility, limit return of capital or deleveraging, and increase dependency on external funding if capex needs persist.

EBIT Margin Volatility

Instability in EBIT margins points to variability in operating efficiency or cost absorption. Persistent margin volatility undermines predictable cash flow and makes capital planning harder, exposing earnings to raw material, pricing, or execution swings over the coming quarters.

Moderate Liability Reliance

Although overall leverage is described as prudent, the noted reliance on liabilities indicates less cushion than a fully equity-heavy structure. In an adverse cycle or rising rates, this reliance can amplify refinancing and liquidity risk, constraining strategic options over time.

Medico Remedies Ltd. Business Overview & Revenue Model

Company Description

Medico Remedies Limited manufactures and sells allopathic pharmaceutical preparations in India. The company offers antibiotics and anti-infective drugs; beta-lactams, and penicillins and cephalosporins; antifungals; vitamins and supplements; cardiovascular products; antipyretic, analgesic, and NSAIDs medicines; antacid and anti-ulcer drugs; antidepressants, and anti-epileptics and antipsychotics products; antimalarial medicines; dry syrups; ointments and creams; anti-diabetics products; and syrups. It also exports its products to Kazakhstan, Kyrgyzstan, Botswana, Jamaica, and Niger. Medico Remedies Limited was incorporated in 1994 and is based in Mumbai, India.

How the Company Makes Money

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Medico Remedies Ltd. Financial Statement Overview

Summary

Strong income statement profile (solid revenue growth, healthy gross margin, improving net margin) and a generally sound balance sheet with prudent leverage. Cash generation is positive, but heavier capex is pressuring free-cash-flow conversion and EBIT margin stability indicates some operating-efficiency volatility.

Income Statement

Medico Remedies Ltd. demonstrates strong revenue growth with a consistent increase in total revenue over the past years, indicating robust business expansion. The gross profit margin is healthy, reflecting effective cost management relative to revenue. Additionally, the net profit margin shows improvement, highlighting enhanced profitability. However, the EBIT margin appears to be less stable, suggesting potential volatility in operating efficiency, which needs attention.

Balance Sheet

The company's balance sheet shows a solid equity base with a favorable debt-to-equity ratio, indicating prudent leverage management. The return on equity is improving, showcasing effective utilization of shareholder funds. However, the equity ratio suggests a moderate reliance on liabilities, which could pose risks if not managed carefully.

Cash Flow

Medico Remedies Ltd. exhibits positive free cash flow growth, which is a positive indicator of financial health and capacity for reinvestment. The operating cash flow to net income ratio is strong, highlighting effective conversion of income into cash. However, the free cash flow to net income ratio is lower, suggesting that capital expenditures are absorbing a significant portion of free cash flow, which may impact future liquidity if not controlled.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.72B	1.51B	1.45B	1.40B	1.21B	1.22B
Gross Profit	478.71M	426.11M	175.25M	355.66M	176.65M	234.09M
EBITDA	191.22M	150.03M	177.36M	135.66M	93.34M	62.59M
Net Income	113.47M	100.93M	82.91M	72.42M	48.12M	25.90M
Balance Sheet
Total Assets	1.37B	1.20B	961.95M	874.48M	761.90M	756.21M
Cash, Cash Equivalents and Short-Term Investments	17.64M	25.45M	15.46M	21.95M	23.40M	38.86M
Total Debt	125.27M	147.00M	80.50M	97.62M	125.97M	150.53M
Total Liabilities	704.99M	573.30M	438.24M	436.05M	388.70M	431.63M
Stockholders Equity	668.58M	624.69M	523.71M	438.43M	373.20M	324.58M
Cash Flow
Free Cash Flow	-5.86M	17.07M	2.04M	15.75M	-11.50M	4.72M
Operating Cash Flow	6.43M	48.92M	26.83M	81.67M	17.10M	26.08M
Investing Cash Flow	-12.01M	-34.60M	-26.77M	-66.03M	-17.56M	-169.60M
Financing Cash Flow	-2.70M	-5.20M	-4.90M	-18.17M	-57.71M	182.80M

Medico Remedies Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.16
• 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:MEDICO, the sentiment is Negative. The current price of 50.16 is above the 20-day moving average (MA) of 43.70, above the 50-day MA of 46.66, and above the 200-day MA of 46.45, indicating a bearish trend. The MACD of -2.26 indicates Positive momentum. The RSI at 30.81 is Neutral, neither overbought nor oversold. The STOCH value of 22.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MEDICO.

Medico Remedies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEDICO	71 Outperform	₹3.25B	36.55	―	―	21.55%	47.80%
ZIMLAB	63 Neutral	₹3.14B	19.99	―	―	-5.82%	-59.22%
LYKALABS	54 Neutral	₹1.90B	-338,564.26	―	―	4.04%	-35.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ALBERTDAVD	51 Neutral	₹3.85B	6.87	―	0.66%	-13.51%	-122.00%
BROOKS	46 Neutral	₹1.66B	10.71	―	―	18.67%	―