Orchid Pharma Limited (ORCHPHARMA) AI Stock Analysis

• Market Cap: ₹35.45B
• Dividend Yield: N/A
• Average Volume (3M): 10.21K
• Price to Earnings (P/E): 67.8
• Beta (1Y): 1.36
• Revenue Growth: -9.23%
• EPS Growth: -56.08%
• Country: IN
• Employees: 871
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -1.10
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹747.00 ▼(-6.03% Downside)

Orchid Pharma's overall stock score is driven by strong financial performance and bullish technical indicators. However, high valuation metrics and cash flow challenges pose risks. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Balance sheet strength

Very high equity ratio and very low leverage provide durable financial stability. Low debt reduces refinancing risk and interest burden, enabling the company to fund operations, regulatory compliance, and incremental capacity via equity or retained earnings during multi-quarter cycles.

Healthy margins and profitability

Sustainably high gross margins and a positive net margin support durable cash generation per unit of sales. These margins create a buffer against pricing pressure in generics, allow reinvestment in manufacturing and R&D, and improve long-run competitiveness across markets.

Diversified pharma business model

Revenue streams across APIs, finished formulations and contract manufacturing diversify commercial exposure. This structural mix reduces dependence on a single product or market, leverages manufacturing assets, and supports steady demand from both domestic and export channels.

Negative Factors

Weak cash conversion and negative FCF

Very low conversion of reported income into cash and negative free cash flow constrain the company's ability to self-fund capex, working capital and strategic investments. Over months this limits flexibility and may force external financing or capex delays.

Moderate return on equity

A mid-single-digit ROE implies only modest efficiency in converting equity into earnings. Persistently modest ROE can limit shareholder value creation and indicates potential for either suboptimal capital allocation or structural margin/scale limits versus higher-return peers.

Recent earnings and revenue weakness

Large negative EPS and revenue growth metrics point to earnings volatility or recent operational setbacks. Such swings reduce predictability of cash flows and make multi-quarter planning harder, increasing execution risk for capacity expansion or long-term contracts.

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

Orchid Pharma shows strong revenue growth and a healthy gross profit margin. The balance sheet is robust with low leverage, but cash flow challenges are evident with negative free cash flow and low cash conversion from income.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• RSI: Neutral
• 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 727.14, above the 50-day MA of 784.03, and above the 200-day MA of 754.95, indicating a bearish trend. The MACD of -24.00 indicates Negative momentum. The RSI at 36.99 is Neutral, neither overbought nor oversold. The STOCH value of 55.72 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	₹33.24B	16.40	―	0.85%	―	―
ADVENZYMES	65 Neutral	₹33.19B	21.80	―	1.70%	14.11%	7.47%
ORCHPHARMA	64 Neutral	₹35.45B	67.84	―	―	-9.23%	-56.08%
GUFICBIO	57 Neutral	₹30.69B	53.92	―	0.03%	7.78%	-34.68%
MOREPENLAB	57 Neutral	₹19.93B	20.21	―	0.49%	-0.29%	-29.04%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%