SMS Pharmaceuticals Limited (SMSPHARMA) AI Stock Analysis

• Market Cap: ₹20.42B
• Dividend Yield: 0.18%
• Average Volume (3M): 5.86K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 1.24
• Revenue Growth: 10.29%
• EPS Growth: 26.79%
• Country: IN
• Employees: 1,197
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.31
• Shares Outstanding: 88,652,030
• 10 Day Avg. Volume: 6,476
• 30 Day Avg. Volume: 5,864
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹257.00
• Price Target Upside: 11.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ₹257.00 ▲(11.59% Upside)

The overall score of 61 reflects stable financial performance and neutral technical indicators, offset by a high valuation. Addressing operational efficiency and improving cash flow consistency could enhance the stock's attractiveness. The lack of positive or negative catalysts from earnings calls or corporate events keeps the focus on core financial and market metrics.

SMS Pharmaceuticals Limited Business Overview & Revenue Model

Company Description

SMS Pharmaceuticals Limited (SMSPHARMA) is a leading Indian pharmaceutical company that primarily operates in the active pharmaceutical ingredients (APIs) sector. The company specializes in the production and development of a wide range of APIs and intermediates for the global pharmaceutical industry. With a strong emphasis on research and development, SMS Pharmaceuticals has established itself as a trusted supplier of high-quality pharmaceutical ingredients, catering to a diverse clientele including major pharmaceutical companies worldwide.

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 demonstrates steady revenue growth and a stable balance sheet with moderate leverage. However, the significant fluctuations in net income and free cash flow indicate potential issues with cost management and liquidity, which must be addressed to ensure long-term stability.

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	Mar 2025	Mar 2024	Mar 2022	Mar 2023	Mar 2021
Income Statement
Total Revenue	7.83B	7.09B	5.15B	5.22B	5.61B
Gross Profit	1.45B	2.11B	1.81B	1.29B	1.81B
EBITDA	1.45B	1.21B	1.20B	593.89M	1.25B
Net Income	691.36M	498.26M	622.20M	-70.59M	625.27M
Balance Sheet
Total Assets	11.53B	10.34B	8.60B	8.80B	8.12B
Cash, Cash Equivalents and Short-Term Investments	415.86M	361.16M	465.83M	140.71M	404.23M
Total Debt	3.11B	2.81B	2.63B	2.54B	2.55B
Total Liabilities	5.13B	4.98B	3.89B	4.19B	4.02B
Stockholders Equity	6.40B	5.36B	4.70B	4.61B	4.11B
Cash Flow
Free Cash Flow	-588.57M	-20.35M	129.86M	-74.71M	-612.96M
Operating Cash Flow	645.23M	501.25M	402.34M	224.50M	904.53M
Investing Cash Flow	-1.24B	-520.72M	-271.53M	-296.86M	-1.52B
Financing Cash Flow	644.32M	306.79M	-69.21M	-319.69M	920.18M

SMS Pharmaceuticals Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 230.30
• 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:SMSPHARMA, the sentiment is Negative. The current price of 230.3 is below the 20-day moving average (MA) of 235.77, below the 50-day MA of 241.42, and below the 200-day MA of 237.21, indicating a bearish trend. The MACD of -6.29 indicates Positive momentum. The RSI at 39.31 is Neutral, neither overbought nor oversold. The STOCH value of 24.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	65 Neutral	₹25.58B	27.74		―	2.12%	-25.99%
SMSPHARMA	61 Neutral	₹20.42B	26.99		0.18%	10.29%	26.79%
SOLARA	53 Neutral	₹29.08B	126.42		―	-7.29%	―
BAJAJHCARE	52 Neutral	₹14.64B	32.28		0.22%	17.50%	―
Sector *	47 Neutral	C$212.69M	-1.55	-24.76%	3.11%	19.75%	0.14%
INDOCO	47 Neutral	₹26.90B	96.22		0.53%	-8.28%	-247.34%

SMS Pharmaceuticals Limited Corporate Events

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.