SMS Lifesciences India Ltd. (SMSLIFE) AI Stock Analysis

• Market Cap: ₹3.57B
• Dividend Yield: 0.12%
• Average Volume (3M): 154.00
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.89
• Revenue Growth: 1.36%
• EPS Growth: -14.54%
• Country: IN
• Employees: 574
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 20.18
• Shares Outstanding: 3,023,287
• 10 Day Avg. Volume: 53
• 30 Day Avg. Volume: 154
• PEG Ratio: 0.14
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 23.68
• 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: 69 Neutral
• Price Target: ₹1,293.00 ▲(17.01% Upside)

SMS Lifesciences India Ltd. shows strong financial performance and technical momentum, which are the primary drivers of its stock score. However, the high P/E ratio and low dividend yield suggest potential overvaluation, which slightly tempers the overall score.

Positive Factors

Business model & market reach

Operating as a manufacturer of small-molecule APIs and intermediates with both domestic and export channels provides durable demand exposure. Serving regulated markets implies compliance capabilities and higher entry barriers, supporting long-term customer relationships and recurring revenues.

Sustained revenue growth

A material positive revenue growth metric indicates the company is expanding sales over time, enabling higher plant utilization and scale economics. Sustained top-line growth supports reinvestment in capacity, stabilizes margins, and underpins long-term cash generation potential.

Robust operating margins

Consistently strong EBIT/EBITDA and improving net margins point to durable operating efficiency and pricing power. Higher operating margins create buffer versus raw-material swings, enable capex and R&D funding, and sustain free-cash-flow generation over the medium term.

Negative Factors

Cash flow inconsistency

Intermittent cash-flow volatility undermines reliable funding for capex, working capital and debt servicing. For an API manufacturer, uneven operating cash conversion can constrain capacity expansion, slow customer qualification investments, and raise refinancing or liquidity risk during stress.

Moderate reliance on liabilities

A balance sheet that relies moderately on liabilities limits financial flexibility and heightens sensitivity to interest-rate or demand shocks. In cyclical API markets, this leverage profile can increase refinancing risk, reduce ability to fund strategic projects, and pressure margins if revenue weakens.

Gross margin volatility / cost management

Fluctuating gross margins signal exposure to raw-material price swings, yield variability or product-mix shifts. Such cost instability impairs long-term margin predictability, complicates pricing negotiations with customers, and can erode competitiveness unless manufacturing efficiencies or diversification are improved.

SMS Lifesciences India Ltd. Business Overview & Revenue Model

Company Description

SMS Lifesciences India Limited manufactures, buys, imports, and sells active pharmaceutical ingredients (API) and its intermediates, organic and inorganic chemicals, and pharmaceuticals in India. The company offers APIs in various therapeutic areas, such as antiulcer, antifungal, and erectile dysfunction. It also provides consultancy services. The company exports its products. The company was founded in 1990 and is based in Hyderabad, India.

How the Company Makes Money

SMS Lifesciences India Ltd. generates revenue primarily through the sale of its Active Pharmaceutical Ingredients (APIs) and intermediates to various pharmaceutical companies. The company operates on a B2B model, supplying its products to both domestic and international markets. Key revenue streams include direct sales of APIs, contract manufacturing services, and strategic partnerships with other pharmaceutical firms for co-development projects. Furthermore, SMSLIFE benefits from long-term contracts with clients, which provide a steady income stream. Their focus on quality and compliance with international standards has also opened doors for exports, contributing significantly to their earnings.

SMS Lifesciences India Ltd. Financial Statement Overview

Summary

SMS Lifesciences India Ltd. demonstrates robust financial health with growing profitability and efficient equity utilization. However, attention to cost management and cash flow consistency could further strengthen its financial position.

Income Statement

SMS Lifesciences India Ltd. shows a strong EBIT and EBITDA margin, with consistent revenue growth over the years. The net profit margin has been improving, indicating enhanced profitability. However, the volatility in gross profit margin suggests potential cost management issues.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, indicating balanced leverage. The return on equity is solid, reflecting efficient use of equity capital. However, the equity ratio shows a moderate reliance on liabilities, which could pose risks in economic downturns.

Cash Flow

There is a noticeable improvement in free cash flow growth, and the operating cash flow to net income ratio is healthy, suggesting efficient cash conversion. However, historical inconsistencies in cash flow indicate potential volatility in operational cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.35B	3.45B	3.06B	3.16B	3.47B	2.66B
Gross Profit	1.03B	505.79M	962.44M	875.57M	875.42M	702.13M
EBITDA	458.85M	498.99M	349.41M	341.76M	489.11M	319.58M
Net Income	172.68M	201.09M	90.93M	114.63M	253.22M	135.57M
Balance Sheet
Total Assets	0.00	3.90B	3.91B	3.95B	3.57B	3.02B
Cash, Cash Equivalents and Short-Term Investments	15.08M	15.08M	5.70M	36.10M	33.56M	106.25M
Total Debt	0.00	864.09M	1.01B	1.00B	795.98M	646.86M
Total Liabilities	-2.12B	1.78B	1.97B	2.07B	1.92B	1.73B
Stockholders Equity	2.12B	1.97B	1.77B	1.64B	1.52B	1.29B
Cash Flow
Free Cash Flow	0.00	144.61M	34.38M	-3.38K	-623.94M	-3.87M
Operating Cash Flow	0.00	298.10M	243.06M	1.47K	-112.41M	351.70M
Investing Cash Flow	0.00	-150.61M	-184.50M	-312.92M	-71.43M	-262.35M
Financing Cash Flow	0.00	-148.15M	-65.64M	168.88M	108.33M	-25.46M

SMS Lifesciences India Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1105.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SMSLIFE, the sentiment is Negative. The current price of 1105 is below the 20-day moving average (MA) of 1268.31, below the 50-day MA of 1313.00, and below the 200-day MA of 1239.60, indicating a bearish trend. The MACD of -35.60 indicates Positive momentum. The RSI at 38.12 is Neutral, neither overbought nor oversold. The STOCH value of 28.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SMSLIFE.

SMS Lifesciences India 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%
SMSPHARMA	65 Neutral	₹29.73B	33.07	―	0.13%	11.91%	36.92%
NURECA	57 Neutral	₹2.66B	26.21	―	―	43.30%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LYKALABS	51 Neutral	₹2.55B	-390.11	―	―	4.04%	-35.02%
BROOKS	45 Neutral	₹1.82B	13.28	―	―	18.67%	―

SMS Lifesciences India Ltd. Corporate Events

Haleos Labs Temporarily Withholds Dividends Pending KYC Updates

Haleos Labs Limited, formerly known as SMS Lifesciences India Limited, has announced a temporary withholding of dividend payments to shareholders who have not updated their KYC details as per SEBI requirements. This decision affects dividends declared at the company’s 19th Annual General Meeting for the financial year 2024-25, and payments will resume once shareholders comply with the KYC update requirements.