Medico Remedies Ltd. (MEDICO) AI Stock Analysis

• Market Cap: ₹4.15B
• Dividend Yield: N/A
• Average Volume (3M): 12.74K
• Price to Earnings (P/E): 36.6
• Beta (1Y): 0.17
• Revenue Growth: 21.55%
• EPS Growth: 47.80%
• Country: IN
• Employees: 193
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.31
• 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: 76 Outperform
• Price Target: ₹58.00 ▲(14.56% Upside)

Medico Remedies Ltd. is positioned well for growth with strong financial performance and positive technical indicators. However, the high P/E ratio suggests the stock may be overvalued, which could limit upside potential. Monitoring capital expenditures and market conditions will be crucial for sustaining financial health.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust business expansion and market demand for Medico's pharmaceutical products, supporting long-term sustainability.

Profitability

Improved profitability through a higher net profit margin reflects effective cost management and operational efficiency, contributing to financial stability.

Cash Flow Management

Positive free cash flow growth indicates strong financial health, providing Medico with the ability to reinvest in growth opportunities and manage liabilities.

Negative Factors

Operating Efficiency Volatility

Volatility in operating efficiency could impact profitability and suggests the need for better cost control and operational strategies to maintain margins.

Capital Expenditure Management

High capital expenditures could strain future liquidity, necessitating careful management to ensure continued financial flexibility and growth capacity.

Reliance on Liabilities

Moderate reliance on liabilities could pose risks if not managed carefully, potentially affecting financial stability and increasing vulnerability to economic shifts.

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

Medico Remedies Ltd. generates revenue primarily through the sale of its pharmaceutical products, which include prescription drugs and OTC medications. The company employs a multi-faceted revenue model that includes direct sales to hospitals and healthcare facilities, partnerships with pharmacies, and distribution agreements with wholesalers. In addition to traditional sales channels, MEDICO also engages in licensing agreements with other pharmaceutical companies, allowing it to earn royalties on products developed using its proprietary technology or formulations. Significant partnerships with healthcare organizations and participation in government contracts further contribute to its earnings, bolstering its market presence and ensuring consistent revenue flow.

Medico Remedies Ltd. Financial Statement Overview

Summary

Medico Remedies Ltd. shows strong revenue growth and improving profit margins, indicating robust business expansion. The balance sheet is solid with prudent leverage management, though there is moderate reliance on liabilities. Cash flow is positive, but capital expenditures need monitoring to ensure liquidity.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.58B	1.51B	1.45B	1.40B	1.21B	1.22B
Gross Profit	447.81M	426.11M	175.25M	355.66M	176.65M	234.09M
EBITDA	177.72M	150.03M	177.36M	135.66M	93.34M	62.59M
Net Income	103.33M	100.93M	82.91M	72.42M	48.12M	25.90M
Balance Sheet
Total Assets	0.00	1.20B	961.95M	874.48M	761.90M	756.21M
Cash, Cash Equivalents and Short-Term Investments	25.45M	25.45M	15.46M	21.95M	23.40M	38.86M
Total Debt	0.00	147.00M	80.50M	97.62M	125.97M	150.53M
Total Liabilities	-624.69M	573.30M	438.24M	436.05M	388.70M	431.63M
Stockholders Equity	624.69M	624.69M	523.71M	438.43M	373.20M	324.58M
Cash Flow
Free Cash Flow	0.00	17.07M	2.04M	15.75M	-11.50M	4.72M
Operating Cash Flow	0.00	48.92M	26.83M	81.67M	17.10M	26.08M
Investing Cash Flow	0.00	-34.60M	-26.77M	-66.03M	-17.56M	-169.60M
Financing Cash Flow	0.00	-5.20M	-4.90M	-18.17M	-57.71M	182.80M

Medico Remedies Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 50.63 is below the 20-day moving average (MA) of 51.22, above the 50-day MA of 49.13, and above the 200-day MA of 49.84, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 38.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	76 Outperform	₹4.15B	36.60	―	―	21.55%	47.80%
SMSLIFE	69 Neutral	₹4.15B	22.18	―	0.11%	1.36%	-14.54%
ZIMLAB	63 Neutral	₹3.47B	52.70	―	―	-5.82%	-59.22%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ALBERTDAVD	51 Neutral	₹4.53B	―	―	0.63%	-13.51%	-122.00%
LYKALABS	51 Neutral	₹2.97B	140.80	―	―	4.04%	-35.02%
BROOKS	41 Neutral	₹3.12B	22.58	―	―	18.67%	―