SMS Pharmaceuticals Limited (IN:SMSPHARMA)
:SMSPHARMA
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SMS Pharmaceuticals Limited
(SMSPHARMA)
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Rating:57Neutral
Price Target:
₹395.00
▲(21.39% Upside)
Action:Reiterated
Date:05/23/26
The score is primarily constrained by weak cash conversion and recurring negative free cash flow despite improved reported profitability. Technicals are mixed with near-term weakness but a still-positive longer-term trend, while valuation is balanced by a high dividend yield against a relatively high P/E.
Positive Factors
B2B API Manufacturing Model
A focused B2B API manufacturing model creates durable, repeatable revenue from formulators and drug makers. Supplying both domestic and export markets diversifies demand channels, while bulk-API production benefits from scale, long-term contracts and higher switching costs versus finished-dose competition.
Negative Factors
Weak Cash Generation / Negative Free Cash Flow
Recurring negative free cash flow despite reported profits is a structural weakness. Low conversion of earnings to cash constrains funding for capex, working capital and dividends, increases reliance on external financing, and raises liquidity risk if margins normalize or sales soften.
Read all positive and negative factors
Positive Factors
Negative Factors
B2B API Manufacturing Model
A focused B2B API manufacturing model creates durable, repeatable revenue from formulators and drug makers. Supplying both domestic and export markets diversifies demand channels, while bulk-API production benefits from scale, long-term contracts and higher switching costs versus finished-dose competition.
Read all positive factors
SMS Pharmaceuticals Limited (SMSPHARMA) vs. iShares MSCI India ETF (INDA)
Market Cap
₹35.30B
Dividend Yield0.13%
Average Volume (3M)105.50K
Price to Earnings (P/E)26.2
Beta (1Y)1.57
Revenue Growth13.30%
EPS Growth39.45%
CountryIN
Employees1,197
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)9.69
Shares Outstanding93,652,030
10 Day Avg. Volume15,241
30 Day Avg. Volume105,503
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)4.36
Price to Sales (P/S)3.87
P/FCF Ratio-37.01
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
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, anti...
How the Company Makes Money
SMS Pharmaceuticals Limited makes money mainly by manufacturing and selling active pharmaceutical ingredients (APIs) and related intermediates in bulk quantities to pharmaceutical companies that use these inputs to produce finished formulations (t...
SMS Pharmaceuticals Limited Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
72
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.60B | 8.87B | 7.83B | 7.09B | 5.22B | 5.15B |
| Gross Profit | 2.49B | 1.75B | 1.45B | 2.11B | 1.29B | 1.81B |
| EBITDA | 1.67B | 1.31B | 1.45B | 1.18B | 593.89M | 1.20B |
| Net Income | 843.60M | 1.02B | 691.36M | 498.26M | -70.59M | 622.20M |
Balance Sheet | ||||||
| Total Assets | 12.76B | 13.62B | 11.53B | 10.34B | 8.80B | 8.60B |
| Cash, Cash Equivalents and Short-Term Investments | 1.02B | 460.75M | 415.86M | 361.16M | 73.78M | 465.83M |
| Total Debt | 3.24B | 3.65B | 3.11B | 2.81B | 2.54B | 2.63B |
| Total Liabilities | 5.47B | 5.77B | 5.13B | 4.98B | 4.19B | 3.89B |
| Stockholders Equity | 7.29B | 7.86B | 6.40B | 5.36B | 4.61B | 4.70B |
Cash Flow | ||||||
| Free Cash Flow | 126.58M | -926.46M | -588.57M | -20.35M | -74.71M | 129.86M |
| Operating Cash Flow | 423.25M | 379.12M | 645.23M | 501.25M | 224.50M | 402.34M |
| Investing Cash Flow | -305.04M | -1.32B | -1.24B | -520.72M | -296.86M | -271.53M |
| Financing Cash Flow | 462.69M | 981.46M | 644.32M | 306.79M | -319.69M | -69.21M |
SMS Pharmaceuticals Limited Technical Analysis
Neutral
325.40
Price Trends
399.63
Negative
370.44
Positive
323.30
Positive
Market Momentum
-4.93
Positive
41.54
Neutral
16.72
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 325.4 is below the 20-day moving average (MA) of 402.93, below the 50-day MA of 399.63, and above the 200-day MA of 323.30, indicating a neutral trend. The MACD of -4.93 indicates Positive momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 16.72 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹115.31B | 17.02 | ― | 0.44% | 12.51% | 9.82% | |
71 Outperform | ₹380.05B | 27.20 | ― | 1.07% | 14.50% | 47.08% | |
70 Outperform | ₹17.47B | 26.41 | ― | 0.13% | 36.08% | 130.40% | |
65 Neutral | ₹53.25B | 29.36 | ― | ― | ― | ― | |
62 Neutral | ₹9.37B | 20.27 | ― | 1.96% | 8.23% | -33.30% | |
57 Neutral | ₹35.30B | 26.18 | ― | 0.13% | 13.30% | 39.45% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
IN:SMSPHARMA
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SMS Pharmaceuticals Limited Corporate Events
SMS Pharmaceuticals Clears FY26 Results, Dividend and Governance Moves
May 22, 2026
SMS Pharmaceuticals Limited reported its audited standalone and consolidated financial results for the quarter and year ended 31 March 2026, with the statutory auditors issuing an unmodified opinion, underscoring the integrity of its financial rep...
SMS Pharmaceuticals Clears FY26 Results, Dividend and Office Shift
May 22, 2026
SMS Pharmaceuticals Limited reported that its board has approved the audited standalone and consolidated financial results for the fourth quarter and full year ended 31 March 2026, with the statutory auditors issuing an unmodified opinion. The boa...
SMS Pharmaceuticals publicises IEPFA’s ‘Saksham Niveshak’ investor campaign
May 2, 2026
SMS Pharmaceuticals Limited has notified stock exchanges that it has published newspaper advertisements in The Financial Express and Nava Telangana regarding the Investor Education and Protection Fund Authority’s “Second 100-Days Campa...
SMS Pharmaceuticals opens SEBI-backed window for legacy physical share transfers
Mar 20, 2026
SMS Pharmaceuticals Limited has notified stock exchanges that, pursuant to a recent SEBI circular, a special window has been re-opened for re-lodgement of physical share transfer requests. The facility applies only to transfer deeds originally lod...
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.