Sakar Healthcare Ltd (IN:SAKAR)
:SAKAR
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Sakar Healthcare Ltd
(SAKAR)
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Rating:75Outperform
Price Target:
₹877.00
▲(115.72% Upside)
Action:Reiterated
Date:05/19/26
The score is driven primarily by improving financial performance (strong growth, solid margins, and sharply reduced leverage), partially offset by weaker cash-flow conversion despite the recent move to positive free cash flow. Technically, the trend is strong but looks overbought, and valuation appears demanding with a ~36.4 P/E and no dividend yield data to support the price.
Positive Factors
Revenue Growth
Sakar has scaled revenue meaningfully, with FY2026 growth accelerating to 23.4%. Durable top-line expansion across domestic, export and contract manufacturing channels supports long-term market penetration, capacity utilization gains and the ability to invest in product development and distribution.
Negative Factors
Weak Cash Conversion
FCF improvement is encouraging, but free cash flow remains modest at ~28% of net income and operating cash flow relative to sales is still restrained. If cash conversion is not sustained, the company may need external funding for growth or face limits on dividends, buybacks or capex flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sakar has scaled revenue meaningfully, with FY2026 growth accelerating to 23.4%. Durable top-line expansion across domestic, export and contract manufacturing channels supports long-term market penetration, capacity utilization gains and the ability to invest in product development and distribution.
Read all positive factors
Sakar Healthcare Ltd (SAKAR) vs. iShares MSCI India ETF (INDA)
Market Cap
₹17.27B
Dividend YieldN/A
Average Volume (3M)19.08K
Price to Earnings (P/E)36.4
Beta (1Y)0.44
Revenue Growth41.76%
EPS Growth71.38%
CountryIN
Employees325
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)8.87
Shares Outstanding21,949,910
10 Day Avg. Volume18,950
30 Day Avg. Volume19,083
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)3.42
Price to Sales (P/S)4.41
P/FCF Ratio100.66
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Sakar Healthcare Ltd Business Overview & Revenue Model
Company Description
Sakar Healthcare Limited research, develops, manufactures, and markets pharmaceutical products in India. The company provides liquid orals, cephalosporin tablets, capsules, dry powder syrups, dry powder injections, liquid injectable SVP in ampoule...
How the Company Makes Money
Sakar Healthcare primarily makes money by selling pharmaceutical formulations. Its revenue is generated from (1) domestic sales of branded or marketed formulations through distribution/marketing channels and institutional customers, and (2) export...
Sakar Healthcare Ltd Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.04B | 2.52B | 1.78B | 1.54B | 1.33B | 1.28B |
| Gross Profit | 719.02M | 661.78M | 427.91M | 699.59M | 598.12M | 534.12M |
| EBITDA | 535.80M | 688.88M | 509.44M | 393.27M | 378.12M | 315.72M |
| Net Income | 195.05M | 304.85M | 175.02M | 116.71M | 127.59M | 152.43M |
Balance Sheet | ||||||
| Total Assets | 4.49B | 4.81B | 4.15B | 3.89B | 3.36B | 2.68B |
| Cash, Cash Equivalents and Short-Term Investments | 2.16M | 2.60M | 3.09M | 4.66M | 35.23M | 71.36M |
| Total Debt | 718.62M | 553.04M | 749.55M | 793.52M | 1.19B | 928.62M |
| Total Liabilities | 1.45B | 1.57B | 1.30B | 1.26B | 1.63B | 1.40B |
| Stockholders Equity | 3.03B | 3.24B | 2.85B | 2.62B | 1.73B | 1.27B |
Cash Flow | ||||||
| Free Cash Flow | 31.88M | 110.19M | -135.52M | -350.93M | -468.81M | -618.33M |
| Operating Cash Flow | 305.87M | 393.71M | 187.31M | 244.67M | 353.14M | 356.99M |
| Investing Cash Flow | -274.00M | -283.52M | -307.09M | -515.39M | -743.77M | -903.72M |
| Financing Cash Flow | -32.81M | -110.68M | -34.79M | 274.45M | 410.96M | 320.33M |
Sakar Healthcare Ltd Technical Analysis
Positive
406.55
Price Trends
592.22
Positive
515.14
Positive
438.61
Positive
Market Momentum
51.54
Negative
65.54
Neutral
85.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SAKAR, the sentiment is Positive. The current price of 406.55 is below the 20-day moving average (MA) of 652.06, below the 50-day MA of 592.22, and below the 200-day MA of 438.61, indicating a bullish trend. The MACD of 51.54 indicates Negative momentum. The RSI at 65.54 is Neutral, neither overbought nor oversold. The STOCH value of 85.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SAKAR.
Sakar Healthcare Ltd Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ₹13.79B | 10.01 | ― | ― | 7.99% | 119.03% | |
78 Outperform | ₹14.64B | 8.47 | ― | 0.37% | 9.10% | -1.72% | |
75 Outperform | ₹17.27B | 36.38 | ― | ― | 41.76% | 71.38% | |
75 Outperform | ₹14.21B | 37.13 | ― | 1.24% | 6.89% | -23.34% | |
69 Neutral | ₹13.41B | 17.72 | ― | ― | 28.33% | 76.13% | |
56 Neutral | ₹11.79B | 18.86 | ― | ― | 32.95% | -10.44% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Sakar Healthcare Ltd Corporate Events
Sakar Healthcare Honoured as Top Supplier by Ethiopian Pharmaceutical Supply Services
Apr 30, 2026
Sakar Healthcare Ltd. has been recognised by Ethiopian Pharmaceutical Supply Services as one of its best suppliers for 2024–2025, earning a crystal trophy for outstanding performance. The accolade reflects Sakar’s strong execution in m...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.