Medico Remedies Ltd. (MEDICO) AI Stock Analysis

• Market Cap: ₹4.20B
• Dividend Yield: N/A
• Average Volume (3M): 12.74K
• Price to Earnings (P/E): 37.0
• Beta (1Y): -0.02
• 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: 71 Outperform
• Price Target: ₹59.00 ▲(17.62% Upside)

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 Growth

Sustained ~21.5% revenue growth indicates expanding product uptake and distribution reach across hospitals, pharmacies and wholesalers. Over 2–6 months this supports durable top-line momentum, improves scale economics and underpins reinvestment capacity into R&D and commercial expansion.

Profitability & Margins

Healthy gross margins and improving net margin reflect lasting cost management and product mix advantages. Durable profitability enhances cash generation potential, funds pipeline investments and provides resilience to pricing pressure across therapeutic areas over the medium term.

Prudent Leverage

A solid equity base and favorable debt-to-equity profile indicate conservative capital structure and financial flexibility. Improved ROE shows efficient capital use, supporting capacity for targeted M&A, R&D funding or buffering downturns without straining liquidity in the coming months.

Negative Factors

CapEx Pressure on FCF

Elevated capital expenditures are reducing free cash flow conversion despite positive operating cash flow. Persisting capex needs can constrain cash available for debt reduction, dividends or opportunistic investments, leaving less cushion if revenue or margins soften.

EBIT Margin Volatility

Instability in EBIT margin signals operating leverage and cost or mix sensitivity. Over 2–6 months this can translate into uneven earnings conversion and weaker predictability of cash generation, complicating planning for reinvestment or deleveraging initiatives.

Reliance on Liabilities

A moderate reliance on liabilities increases refinancing and interest-rate exposure. If liabilities grow or credit conditions tighten, the company’s financial flexibility and ability to pursue growth investments or absorb shocks could be impaired over the medium term.

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

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	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: 50.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 50.16 is above the 20-day moving average (MA) of 49.01, below the 50-day MA of 50.40, and above the 200-day MA of 47.95, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 52.41 is Neutral, neither overbought nor oversold. The STOCH value of 56.29 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	71 Outperform	₹4.20B	37.01	―	―	21.55%	47.80%
SMSLIFE	69 Neutral	₹3.57B	19.10	―	0.12%	1.36%	-14.54%
ZIMLAB	63 Neutral	₹3.48B	52.76	―	―	-5.82%	-59.22%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ALBERTDAVD	51 Neutral	₹3.95B	-26.19	―	0.66%	-13.51%	-122.00%
LYKALABS	51 Neutral	₹2.55B	-390.11	―	―	4.04%	-35.02%
BROOKS	45 Neutral	₹1.82B	13.28	―	―	18.67%	―