Orchid Pharma Limited (ORCHPHARMA) AI Stock Analysis

• Market Cap: ₹28.63B
• Dividend Yield: N/A
• Average Volume (3M): 10.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: -9.23%
• EPS Growth: -56.08%
• Country: IN
• Employees: 871
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -2.49
• Shares Outstanding: 50,719,105
• 10 Day Avg. Volume: 2,303
• 30 Day Avg. Volume: 10,213
• PEG Ratio: 12.87
• Price to Book (P/B): 3.13
• Price to Sales (P/S): 4.31
• P/FCF Ratio: -30.33
• 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): 3.15
• Revenue Forecast (FY): ₹10.30B

• Rating: 54 Neutral
• Price Target: ₹576.00 ▼(-27.54% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is supported by improving profitability and a strong, low-leverage balance sheet, but is meaningfully reduced by negative free cash flow and weak cash conversion. Technicals are bearish with the stock trading below major moving averages and negative MACD, and valuation is pressured by an extremely high P/E with no dividend yield data.

Positive Factors

Low leverage / strong balance sheet

A very high equity ratio and minimal debt provide durable financial flexibility: the company can fund working capital, absorb regulatory or market setbacks, and pursue capacity or product investments without heavy refinancing risk, supporting multi‑month resilience.

Healthy margins & return to profitability

Sustained gross margins near 41% and a positive net margin indicate structural cost control and pricing strength in its API and formulation mix. Durable margins improve cash generation potential (if converted) and allow reinvestment into R&D or capacity to sustain competitive position over months.

Reported revenue growth

A reported ~12.5% annual revenue gain suggests expanding market penetration or mix improvement across APIs and formulations. Stable top‑line growth supports better fixed‑cost absorption in manufacturing and provides a firmer base for margin and earnings stability over the medium term.

Negative Factors

Negative free cash flow

Negative free cash flow is a durable concern: it constrains the company's ability to self‑fund capex, new product launches, or working capital needs. If sustained, it forces reliance on external financing or equity, raising cost of capital and limiting strategic optionality over coming months.

Weak cash conversion

An OCF-to-net-income ratio of 0.19 means reported profits largely do not translate into cash, likely from working capital pressure or receivables. This weak conversion increases operational risk, reduces financial flexibility, and makes earnings less reliable for funding growth or paying down obligations.

Modest return on equity

An ROE below 8% signals only moderate efficiency in converting shareholder capital into profits versus peers. Over months this can limit the company's ability to deliver compelling shareholder returns, and may reflect capital intensity or underutilized assets that constrain scalable profit growth.

Orchid Pharma Limited Business Overview & Revenue Model

Company Description

Orchid Pharma Limited, a pharmaceutical company, engages in the development, manufacture, and marketing of active pharmaceutical ingredients, bulk actives, finished dosage formulations, and nutraceuticals in India. Its active pharmaceutical ingredients product portfolio includes oral cephalosporins, injectable cephalosporins, veterinary products, and non-antibiotics. The company's multi-therapeutic presence in anti-infectives, anti-inflammatory, central nervous system, cardiovascular segment, nutraceuticals, and other oral and sterile products, as well as offers new drug discovery systems and pharmaceutical research and development services. It also exports its products to approximately 40 countries internationally. In addition, the company provides liaising support to customers in regulatory, pharma covigilance, testing and release, retention of samples, service providers, and business development. The company was formerly known as Orchid Chemicals & Pharmaceuticals Limited and changed its name to Orchid Pharma Limited in October 2015. Orchid Pharma Limited was incorporated in 1992 and is headquartered in Chennai, India. Orchid Pharma Limited is a subsidiary of Dhanuka Laboratories Limited.

How the Company Makes Money

Orchid Pharma generates revenue through several key streams, including the sale of generic pharmaceutical products, active pharmaceutical ingredients (APIs), and specialty formulations. The company leverages its manufacturing capabilities to produce high-quality generics that are marketed both in India and abroad, particularly in regulated markets such as the United States and Europe. Additionally, Orchid Pharma engages in strategic partnerships and collaborations with other pharmaceutical companies to enhance its product offerings and market reach. The firm's focus on research and development allows it to innovate and expand its product pipeline, contributing to ongoing revenue growth.

Orchid Pharma Limited Financial Statement Overview

Summary

Income statement strength (revenue up 12.54%, gross margin 40.97%, and return to profitability with a 10.81% net margin) and a solid balance sheet (75.08% equity ratio, low 0.14 debt-to-equity) are tempered by weak cash generation (operating cash flow to net income of 0.19 and negative free cash flow).

Income Statement

Orchid Pharma has demonstrated strong revenue growth, with a 12.54% increase in the last year. The gross profit margin is healthy at 40.97%, and the company has managed to turn around its net income from previous losses to a net profit margin of 10.81%. However, the EBIT margin of 27.85% and EBITDA margin of 15.69% indicate room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet is robust, with an equity ratio of 75.08% suggesting strong financial stability. The debt-to-equity ratio is low at 0.14, indicating low leverage. The return on equity (ROE) is 7.86%, which, while positive, indicates moderate return generation from equity.

Cash Flow

Cash flow analysis shows potential stress, with a substantial decline in free cash flow from last year. The operating cash flow to net income ratio of 0.19 suggests low conversion of income into cash. Free cash flow has turned negative, which could pose challenges for future investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.50B	9.22B	8.19B	6.66B	5.60B	4.50B
Gross Profit	3.58B	3.55B	1.36B	706.89M	2.32B	2.09B
EBITDA	1.30B	1.45B	1.42B	1.43B	621.38M	650.03M
Net Income	852.17M	996.57M	921.66M	463.18M	-19.51M	-1.17B
Balance Sheet
Total Assets	0.00	16.88B	15.54B	12.25B	11.11B	12.37B
Cash, Cash Equivalents and Short-Term Investments	1.80B	1.83B	45.24M	275.21M	48.27M	315.15M
Total Debt	0.00	1.75B	1.35B	3.31B	2.68B	4.53B
Total Liabilities	-12.67B	4.21B	3.84B	5.37B	4.63B	5.84B
Stockholders Equity	12.67B	12.67B	11.69B	6.89B	6.47B	6.53B
Cash Flow
Free Cash Flow	0.00	-1.31B	611.77M	-665.75M	780.71M	229.82M
Operating Cash Flow	0.00	192.15M	1.26B	183.38M	924.75M	235.86M
Investing Cash Flow	0.00	-269.31M	-3.12B	-312.14M	1.13B	672.05M
Financing Cash Flow	0.00	252.22M	1.67B	311.66M	-2.17B	-1.65B

Orchid Pharma Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 794.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ORCHPHARMA, the sentiment is Negative. The current price of 794.9 is above the 20-day moving average (MA) of 650.29, above the 50-day MA of 701.83, and above the 200-day MA of 739.12, indicating a bearish trend. The MACD of -35.93 indicates Positive momentum. The RSI at 13.76 is Positive, neither overbought nor oversold. The STOCH value of 36.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ORCHPHARMA.

Orchid Pharma Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPGLIFE	76 Outperform	₹29.94B	43.39	―	0.85%	―	―
ADVENZYMES	65 Neutral	₹33.06B	19.90	―	1.70%	14.11%	7.47%
GUFICBIO	57 Neutral	₹27.96B	67.80	―	0.03%	7.78%	-34.68%
MOREPENLAB	57 Neutral	₹22.84B	20.54	―	0.49%	-0.29%	-29.04%
ORCHPHARMA	54 Neutral	₹28.63B	-76.20	―	―	-9.23%	-56.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%