Unichem Laboratories Limited (UNICHEMLAB) AI Stock Analysis

• Market Cap: ₹26.21B
• Dividend Yield: N/A
• Average Volume (3M): 1.03K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 1.06
• Revenue Growth: 25.42%
• EPS Growth: N/A
• Country: US
• Employees: 2,875
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -1.69
• Shares Outstanding: 70,405,754
• 10 Day Avg. Volume: 1,013
• 30 Day Avg. Volume: 1,033
• PEG Ratio: -0.12
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 2.32
• P/FCF Ratio: -33.98
• 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: 54 Neutral
• Price Target: ₹380.00 ▼(-14.23% Downside)

The overall stock score is primarily influenced by financial performance and technical analysis. Strong revenue growth and a stable balance sheet are offset by weak profitability and cash flow issues. The technical indicators suggest a bearish trend, while valuation is moderate. The absence of earnings call data and corporate events means these factors do not impact the score.

Positive Factors

Revenue Growth

Sustained revenue growth to 21.11bn in 2025 indicates expanding market penetration across domestic, export formulations and APIs. Over the medium term this durable top-line expansion supports scale benefits, funds reinvestment in R&D and capacity, and reduces reliance on single markets.

Improved Gross Margins

A gross margin expansion to ~59% signals improved manufacturing efficiency and a healthier product mix. Structurally higher gross margins provide a buffer against pricing pressure, enable operating leverage as sales grow, and increase capacity to invest in product development and quality compliance.

Low Leverage / Strong Equity

Low debt relative to equity and rising shareholders' equity provide durable financial flexibility. This balance sheet strength supports capex, regulatory compliance spending, M&A or temporary shocks without forcing dilutive financing, improving long-term strategic optionality.

Negative Factors

Negative Operating & Free Cash Flow

Negative operating and free cash flows are a structural concern: they limit the company's ability to internally fund capex, regulatory investments or working capital. Persistent cash deficits may require external financing, raising risk and cost of growth over the medium term.

Low Net Profitability

A net margin near 6.5% despite strong revenues and higher gross margins indicates limited conversion of sales into earnings. Structurally weak net profitability constrains retained earnings, reduces cushion for investments or dividends, and weakens long-term return generation.

Margin & Cash Conversion Volatility

Volatile EBIT/EBITDA margins and inconsistent cash conversion create execution and forecasting risk. Over the medium term this variability can impede disciplined capital allocation, increase working capital needs, and elevate financing costs, hindering steady operational improvement.

Unichem Laboratories Limited Business Overview & Revenue Model

Company Description

Unichem Laboratories Limited, a pharmaceutical company, manufactures and sells pharmaceutical products worldwide. It offers formulation products that address various therapeutic areas, such as gastroenterology, cardiology, diabetology, psychiatry, neurology, anti-bacterial, anti-infective, and pain management; and active pharmaceutical ingredients, as well as contract manufacturing services. The company was founded in 1944 and is headquartered in Mumbai, India.

How the Company Makes Money

Unichem Laboratories generates revenue primarily through the sale of its pharmaceutical products, which includes both branded and generic medications. The company's revenue model is diversified across domestic and international markets, with significant income derived from its extensive portfolio of prescription drugs. Key revenue streams include sales from its formulations in various therapeutic segments, as well as from the production and sale of active pharmaceutical ingredients (APIs) to other pharmaceutical firms. Additionally, Unichem has established partnerships and collaborations with other companies for product development and distribution, further enhancing its market reach and revenue potential. The company also benefits from a growing demand for healthcare products and an increasing emphasis on quality medications in both local and global markets.

Unichem Laboratories Limited Financial Statement Overview

Summary

Unichem Laboratories shows strong revenue growth and improved gross margins, but profitability is limited with a low net profit margin. The balance sheet is stable with low leverage, yet cash flow management is a concern due to negative operating and free cash flows.

Income Statement

Unichem Laboratories has demonstrated significant revenue growth, with Total Revenue increasing from $11.56 billion in 2020 to $21.11 billion in 2025, a strong upward trajectory. Gross Profit Margin improved to 59.08% in 2025, highlighting enhanced efficiency. However, the Net Profit Margin remains low at 6.51% in 2025, indicating limited profitability gains. The EBIT and EBITDA margins show volatility, suggesting operational challenges despite recent improvements.

Balance Sheet

The company maintains a healthy balance sheet with Stockholders' Equity rising to $24.51 billion in 2025, demonstrating robust equity support. The Debt-to-Equity Ratio is relatively low at 0.19, indicating low leverage and financial stability. However, the Equity Ratio has slightly decreased, reflecting a minor increase in liabilities relative to assets, warranting cautious monitoring.

Cash Flow

Cash flow performance is mixed, with Operating Cash Flow turning negative in 2025, showing cash management issues. Free Cash Flow remains negative, highlighting potential liquidity challenges. The Operating Cash Flow to Net Income Ratio reflects inconsistency in cash conversion efficiency. Attention is needed to improve cash flow stability and support growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.09B	21.11B	16.57B	13.25B	12.56B	12.05B
Gross Profit	12.33B	12.47B	3.17B	7.92B	8.07B	7.89B
EBITDA	2.87B	2.65B	742.36M	-456.07M	1.18B	1.41B
Net Income	1.31B	1.38B	-704.74M	-2.02B	330.62M	343.25M
Balance Sheet
Total Assets	0.00	35.69B	31.69B	31.93B	33.19B	31.26B
Cash, Cash Equivalents and Short-Term Investments	895.80M	895.80M	1.52B	1.89B	3.73B	3.14B
Total Debt	0.00	4.60B	2.48B	3.14B	3.49B	1.19B
Total Liabilities	-24.51B	11.19B	8.07B	7.58B	7.00B	5.69B
Stockholders Equity	24.51B	24.51B	23.62B	24.35B	26.18B	25.57B
Cash Flow
Free Cash Flow	0.00	-1.44B	-58.53M	-1.29B	-3.87B	-2.55B
Operating Cash Flow	0.00	-70.20M	166.94M	-850.91M	-2.60B	330.99M
Investing Cash Flow	0.00	-2.41B	504.04M	2.03B	1.00B	-735.58M
Financing Cash Flow	0.00	1.84B	-1.06B	-813.00M	1.91B	-1.21B

Unichem Laboratories Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 443.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UNICHEMLAB, the sentiment is Negative. The current price of 443.05 is above the 20-day moving average (MA) of 415.23, above the 50-day MA of 441.64, and below the 200-day MA of 524.08, indicating a bearish trend. The MACD of -18.69 indicates Positive momentum. The RSI at 18.92 is Positive, neither overbought nor oversold. The STOCH value of 6.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:UNICHEMLAB.

Unichem Laboratories Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPGLIFE	76 Outperform	₹35.32B	16.39	―	0.85%	―	―
DCAL	63 Neutral	₹33.17B	24.32	―	―	5.38%	―
SEQUENT	58 Neutral	₹52.69B	124.17	―	―	14.39%	152.14%
AARTIDRUGS	57 Neutral	₹33.83B	16.99	―	0.24%	4.08%	31.52%
GUFICBIO	57 Neutral	₹31.04B	54.54	―	0.03%	7.78%	-34.68%
UNICHEMLAB	54 Neutral	₹26.21B	29.63	―	―	25.42%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Unichem Laboratories Limited Corporate Events

Unichem Laboratories Settles European Commission Fine

Unichem Laboratories Limited has announced the payment of a fine amounting to €16,753,873.41 to the European Commission related to the Perindopril drug matter. This payment marks a significant financial obligation for the company and may impact its financial performance. The resolution of this matter could influence the company’s reputation and its regulatory standing within the European market.