SMS Pharmaceuticals Limited (SMSPHARMA) AI Stock Analysis

• Market Cap: ₹22.40B
• Dividend Yield: 0.16%
• Average Volume (3M): 104.48K
• Price to Earnings (P/E): 30.0
• Beta (1Y): 1.47
• Revenue Growth: 10.29%
• EPS Growth: 25.18%
• Country: IN
• Employees: 1,197
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.31
• Shares Outstanding: 88,652,030
• 10 Day Avg. Volume: 47,512
• 30 Day Avg. Volume: 104,481
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹310.00
• Price Target Upside: 22.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ₹310.00 ▲(22.70% Upside)

The overall stock score of 55 reflects the company's solid revenue growth and stable balance sheet, offset by concerns over operational efficiency and liquidity management. The technical analysis suggests strong upward momentum, but the stock appears overvalued with limited income potential. Addressing cost management and cash flow consistency will be crucial for improving the stock's attractiveness.

SMS Pharmaceuticals Limited Business Overview & Revenue Model

Company Description

SMS Pharmaceuticals Limited manufactures and sells active pharmaceutical ingredients (APIs) and intermediates in India. The company offers anti-ulcer, anti-fungal, anti-migraine, anti-diabetic, erectile dysfunction, antiemetic, antiepileptic, antipsychotic, anti-hypertensive, anti-anginal, anti-viral, urinary antispasmodic, and anti-retroviral APIs. It is also involved in the contract research activities. The company also exports its products. SMS Pharmaceuticals Limited was incorporated in 1987 and is based in Hyderabad, India.

How the Company Makes Money

SMS Pharmaceuticals Limited generates revenue primarily through the manufacturing and sale of active pharmaceutical ingredients (APIs) and pharmaceutical intermediates. The company's key revenue streams include supplying these products to pharmaceutical companies around the world, who use them in the production of generic and branded medications. Significant partnerships with global pharmaceutical firms, a robust product portfolio, and a focus on innovation and quality contribute to the company's earnings. Additionally, SMS Pharmaceuticals may engage in contract manufacturing and custom synthesis services, further diversifying its revenue streams.

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.

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 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.80B	7.83B	5.22B	7.09B	5.15B	5.61B
Gross Profit	1.94B	1.45B	1.29B	2.11B	1.81B	1.81B
EBITDA	1.38B	1.45B	593.89M	1.21B	1.20B	1.25B
Net Income	660.99M	691.36M	-70.59M	498.26M	622.20M	625.27M
Balance Sheet
Total Assets	0.00	11.53B	8.80B	10.34B	8.60B	8.12B
Cash, Cash Equivalents and Short-Term Investments	90.66M	415.86M	140.71M	361.16M	465.83M	404.23M
Total Debt	0.00	3.11B	2.54B	2.81B	2.63B	2.55B
Total Liabilities	-5.64B	5.13B	4.19B	4.98B	3.89B	4.02B
Stockholders Equity	5.64B	6.40B	4.61B	5.36B	4.70B	4.11B
Cash Flow
Free Cash Flow	0.00	-588.57M	-74.71M	-20.35M	129.86M	-612.96M
Operating Cash Flow	0.00	645.23M	224.50M	501.25M	402.34M	904.53M
Investing Cash Flow	0.00	-1.24B	-296.86M	-520.72M	-271.53M	-1.52B
Financing Cash Flow	0.00	644.32M	-319.69M	306.79M	-69.21M	920.18M

SMS Pharmaceuticals Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 252.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 252.65 is below the 20-day moving average (MA) of 266.83, above the 50-day MA of 247.19, and above the 200-day MA of 233.26, indicating a neutral trend. The MACD of 9.04 indicates Positive momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 5.33 is Positive, 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
MOREPENLAB	67 Neutral	₹26.78B	28.68	10.21%	0.41%	2.12%	-25.99%
SMSPHARMA	55 Neutral	₹22.40B	29.99	―	0.16%	10.29%	25.18%
BAJAJHCARE	54 Neutral	₹14.92B	32.90	8.47%	0.21%	17.50%	―
SOLARA	53 Neutral	₹29.70B	116.62	0.05%	―	-7.29%	―
INDOCO	46 Neutral	₹26.33B	-23.46	-7.22%	0.07%	-8.28%	-246.17%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

SMS Pharmaceuticals Limited Corporate Events

SMS Pharmaceuticals Reports Strong Q1 Financial Performance

SMS Pharmaceuticals Limited reported a strong financial performance for the quarter ended June 30, 2025, with a 24% year-on-year increase in Profit After Tax (PAT) and a 19% rise in revenue, driven by higher volumes. The company has also initiated backward integration for key APIs and plans to double its R&D investment over the next 18 months to accelerate pipeline development, alongside a ₹250 crore capital expenditure plan, indicating a robust growth strategy.

SMS Pharmaceuticals Releases Q1 FY26 Investor Presentation

SMS Pharmaceuticals Limited has released its investor presentation for the quarter ending June 30, 2025, in compliance with SEBI regulations. This presentation, now available on the company’s website, provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder relations.

SMS Pharmaceuticals Transfers Shares to IEPF for Unclaimed Dividends

SMS Pharmaceuticals Limited announced the transfer of shares to the Investor Education Protection Fund (IEPF) due to unpaid or unclaimed dividends from the financial year 2017-2018. This move, communicated through newspaper advertisements in Financial Express and Nava Telangana, is part of the company’s compliance with SEBI regulations, ensuring transparency and adherence to financial obligations.