SMS Pharmaceuticals Limited (SMSPHARMA) AI Stock Analysis

• Market Cap: ₹29.19B
• Dividend Yield: 0.13%
• Average Volume (3M): 105.50K
• Price to Earnings (P/E): 32.5
• Beta (1Y): 1.65
• Revenue Growth: 11.91%
• EPS Growth: 36.92%
• Country: IN
• Employees: 1,197
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.84
• Shares Outstanding: 93,652,030
• 10 Day Avg. Volume: 15,241
• 30 Day Avg. Volume: 105,503
• PEG Ratio: 0.70
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 2.38
• P/FCF Ratio: -31.61
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹311.00 ▼(-0.22% Downside)

SMS Pharmaceuticals Limited's overall stock score reflects its strong technical momentum and stable financial foundation, tempered by valuation concerns and operational challenges. The stock's upward trend is a positive indicator, but potential overvaluation and cash flow issues warrant caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, enhancing long-term profitability and market reach.

Stable Balance Sheet

A stable balance sheet with moderate leverage supports financial stability, providing resilience against market fluctuations and enabling strategic investments.

Market Expansion

Investment in R&D for new products and improved formulations can drive market expansion and competitive advantage, supporting sustained growth.

Negative Factors

Cash Flow Volatility

Volatile cash flow can hinder operational flexibility and strategic investments, posing risks to financial health and growth potential.

Net Income Volatility

Volatility in net income suggests issues in cost management or operational efficiency, potentially impacting profitability and investor confidence.

Debt Levels

Rising debt levels can strain financial resources, limiting the company's ability to invest in growth opportunities and affecting long-term sustainability.

SMS Pharmaceuticals Limited Business Overview & Revenue Model

Company Description

SMS Pharmaceuticals Limited (SMSPHARMA) is a leading pharmaceutical company based in India, primarily engaged in the development, manufacturing, and marketing of Active Pharmaceutical Ingredients (APIs) and formulations. The company operates in various therapeutic segments, including anti-infectives, cardiovascular, and central nervous system drugs. SMSPHARMA is known for its commitment to quality and innovation, providing high-quality products that cater to both domestic and international markets.

How the Company Makes Money

SMS Pharmaceuticals generates revenue through multiple streams, primarily by selling its APIs and finished formulations to pharmaceutical companies globally. The company has established significant partnerships with various domestic and international firms, allowing it to supply its products on a large scale. Additionally, SMSPHARMA focuses on research and development to create new products and improve existing formulations, which helps to expand its market reach and enhance profitability. Revenue is also bolstered by compliance with regulatory standards, enabling the company to enter and maintain a strong presence in regulated markets.

SMS Pharmaceuticals Limited Financial Statement Overview

Summary

SMS Pharmaceuticals Limited shows solid revenue growth and a stable balance sheet with moderate leverage. However, volatility in net income and free cash flow raises concerns about operational and liquidity management. Addressing cost management and cash flow consistency is crucial for long-term sustainability.

Income Statement

SMS Pharmaceuticals Limited's revenue has shown a steady growth trajectory from 2020 to 2025, with notable year-on-year increases. However, the gross profit margin has seen some fluctuations, and there was a significant drop in net income in 2023, leading to a negative net profit margin that year. The EBIT and EBITDA margins have generally remained healthy, but the volatility in net income suggests some underlying issues with cost management or operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The equity ratio is relatively strong, reflecting solid asset backing by equity. Return on equity has generally been positive, except for a negative ROE in 2023 due to the negative net income. Overall, the balance sheet suggests financial stability, though the increasing debt levels warrant monitoring.

Cash Flow

Operating cash flow has been positive, but free cash flow has fluctuated significantly, with negative figures in some years, highlighting potential liquidity constraints. The operating cash flow to net income ratio is inconsistent, further indicating volatility in cash generation relative to earnings. These fluctuations suggest challenges in maintaining consistent cash flow, possibly due to high capital expenditures or operational inefficiencies.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.14B	7.83B	7.09B	5.22B	5.15B	5.61B
Gross Profit	2.31B	1.45B	2.11B	1.29B	1.81B	1.81B
EBITDA	1.50B	1.45B	1.18B	593.89M	1.20B	1.25B
Net Income	731.47M	691.36M	498.26M	-70.59M	622.20M	625.27M
Balance Sheet
Total Assets	0.00	11.53B	10.34B	8.80B	8.60B	8.12B
Cash, Cash Equivalents and Short-Term Investments	415.86M	415.86M	361.16M	73.78M	465.83M	404.23M
Total Debt	0.00	3.11B	2.81B	2.54B	2.63B	2.55B
Total Liabilities	-6.40B	5.13B	4.98B	4.19B	3.89B	4.02B
Stockholders Equity	6.40B	6.40B	5.36B	4.61B	4.70B	4.11B
Cash Flow
Free Cash Flow	0.00	-588.57M	-20.35M	-74.71M	129.86M	-612.96M
Operating Cash Flow	0.00	645.23M	501.25M	224.50M	402.34M	904.53M
Investing Cash Flow	0.00	-1.24B	-520.72M	-296.86M	-271.53M	-1.52B
Financing Cash Flow	0.00	644.32M	306.79M	-319.69M	-69.21M	920.18M

SMS Pharmaceuticals Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 311.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SMSPHARMA, the sentiment is Neutral. The current price of 311.7 is below the 20-day moving average (MA) of 312.93, above the 50-day MA of 297.02, and above the 200-day MA of 253.29, indicating a neutral trend. The MACD of 5.53 indicates Positive momentum. The RSI at 52.42 is Neutral, neither overbought nor oversold. The STOCH value of 20.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SMSPHARMA.

SMS Pharmaceuticals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMSPHARMA	65 Neutral	₹29.19B	32.48	―	0.13%	11.91%	36.92%
MOREPENLAB	57 Neutral	₹22.37B	22.68	―	0.49%	-0.29%	-29.04%
SOLARA	55 Neutral	₹20.70B	424.32	―	―	-4.18%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAJAJHCARE	51 Neutral	₹13.22B	28.83	―	0.24%	13.04%	―
INDOCO	40 Neutral	₹22.19B	-19.79	―	0.08%	-2.81%	-444.69%

SMS Pharmaceuticals Limited Corporate Events

SMS Pharmaceuticals’ Credit Rating Upgraded by CARE Ratings

SMS Pharmaceuticals Limited announced that CARE Ratings Limited has reaffirmed and upgraded its credit ratings for the company’s bank facilities. The long-term bank facilities have been reaffirmed with a positive outlook, while the short-term bank facilities have been upgraded, reflecting the company’s strong operational and financial performance. This credit rating improvement is likely to enhance the company’s financial standing and could positively impact its ability to secure favorable financing terms, benefiting stakeholders and potentially strengthening its market position.