Vaishali Pharma Ltd. (VAISHALI) AI Stock Analysis

• Market Cap: ₹697.82M
• Dividend Yield: N/A
• Average Volume (3M): 399.32K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.17
• Revenue Growth: 18.35%
• EPS Growth: -154.65%
• Country: IN
• Employees: 27
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.10
• Shares Outstanding: 107,192,130
• 10 Day Avg. Volume: 443,817
• 30 Day Avg. Volume: 399,324
• PEG Ratio: -11.89
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -0.86
• 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: ₹6.50 ▼(-19.15% Downside)
• Action: Reiterated Date: 01/06/26
• Date: Action: Reiterated 01/06/26

The score is driven primarily by mixed financial performance: strong revenue growth and balance-sheet stability are weighed down by negative EBIT and weak operating/free cash flow. Technicals add modest pressure due to longer-term downtrend despite short-term strength. Valuation contributes negatively because the negative P/E reduces interpretability and dividend yield is unavailable.

Positive Factors

Revenue Growth

Sustained top-line growth (~15% YoY) indicates durable demand or expanding market share in its specialty/generic segment. Over 2-6 months this supports scale advantages, capacity to invest in manufacturing or product development, and provides a buffer while margins are addressed.

Balance Sheet Strength

A steady increase in stockholders' equity and moderate leverage provide financial flexibility to fund growth or absorb shocks. This stability supports investment, access to credit, and lowers refinancing risk, preserving operational continuity over coming quarters.

Positive Net Profit Margin

Despite operating challenges, a positive net margin demonstrates the company can deliver bottom-line earnings after taxes and non-operating items. This residual profitability aids retained earnings accumulation and supports reinvestment and creditor confidence over the medium term.

Negative Factors

Negative EBIT

A negative EBIT signals core operations are loss-making before financing and taxes, indicating structural cost or pricing issues. If operating profitability isn't restored, the business will struggle to sustainably fund growth, service capital needs, or defend margins over months ahead.

Weak Cash Generation

Negative operating and free cash flows reduce internal funding for capex, working capital, and debt service. Persistent cash deficits force reliance on external financing, increasing leverage or dilution risk and constraining the firm's ability to execute strategic investments.

Declining Gross Margins

Falling gross margins point to cost pressures or weaker pricing power in core products. Margin erosion makes it harder to achieve operating profitability, limits the impact of revenue growth on earnings, and requires structural fixes such as cost controls or product mix improvement.

Vaishali Pharma Ltd. Business Overview & Revenue Model

Company Description

Vaishali Pharma Limited engages in the pharmaceutical business in India and internationally. It offers active pharmaceutical ingredients (APIs), including antibiotics, anti-ulcer, anti-inflammatory/analgesic/anti-pyretic, anti-malarial, cardiac, anti-diabetic, anti-cold/anti-allergic, anti-diarrheal/anti-protozoal/anti-parasitic, anti-viral, anti-epileptic, anti-asthmatic, anti-fungal, anti-platelet agent, skeletal muscle relaxant, and anti-helmintic drugs, as well as excipients, topical steroids, corticosteroids, and enzymes. The company also provides formulation products, such as antibiotics/antibacterial, anti-platelet, laxative, anti-ulcer/enzyme, anti-asthmatic, anti-malarial, anti-cold/anti-allergic/anti-viral, anti-psychotic, anti-fungal, anti-inflammatory/analgesic/anti-pyretic, anti-diabetic, cardiac, vitamins, topical steroids/corticosteroids, and other formulations. In addition, it offers veterinary pharmaceutical, nutraceutical, oncology, herbal, and surgical products. The company was founded in 1989 and is headquartered in Mumbai, India.

How the Company Makes Money

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Vaishali Pharma Ltd. Financial Statement Overview

Summary

Mixed fundamentals: strong revenue growth and a stable balance sheet are offset by profitability pressure (negative EBIT in 2025) and weak cash generation (negative operating and free cash flow in 2025).

Income Statement

Vaishali Pharma Ltd. has demonstrated strong revenue growth, with a notable increase from 2024 to 2025. However, the company faced challenges in profitability, as indicated by a negative EBIT in 2025. The gross profit margin has declined compared to previous years, reflecting cost pressures. Net profit margin remains positive but is not improving significantly, which suggests moderate profitability.

Balance Sheet

The balance sheet shows a healthy equity base with a steady increase in stockholders' equity. The debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. However, the equity ratio has shown slight fluctuations, suggesting some variability in asset funding. Overall, the balance sheet reflects stability with potential for growth.

Cash Flow

The cash flow statement reveals challenges in operational cash generation, with a significant negative operating cash flow in 2025. Free cash flow has also turned negative, indicating issues in generating cash after capital expenditures. The company needs to improve its cash flow management to sustain operations and fund growth effectively.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.05B	990.26M	862.80M	696.63M	758.21M	537.74M
Gross Profit	126.16M	102.85M	96.43M	129.19M	80.36M	61.56M
EBITDA	18.74M	32.95M	31.71M	113.59M	86.44M	44.42M
Net Income	3.98M	8.17M	7.19M	66.03M	40.24M	10.46M
Balance Sheet
Total Assets	0.00	1.10B	799.56M	789.07M	816.24M	861.23M
Cash, Cash Equivalents and Short-Term Investments	18.43M	18.43M	14.57M	124.24M	11.62M	3.13M
Total Debt	0.00	125.53M	134.92M	147.36M	208.11M	178.50M
Total Liabilities	-649.16M	449.29M	371.16M	383.76M	552.70M	637.05M
Stockholders Equity	649.16M	649.16M	428.39M	405.31M	263.54M	224.19M
Cash Flow
Free Cash Flow	0.00	-197.36M	2.71M	7.83M	4.54M	18.85M
Operating Cash Flow	0.00	-194.31M	8.07M	10.80M	13.19M	20.11M
Investing Cash Flow	0.00	-1.88M	12.03M	2.82M	-8.47M	-1.10M
Financing Cash Flow	0.00	184.91M	-14.16M	-17.32M	4.17M	-18.12M

Vaishali Pharma Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.04
• 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:VAISHALI, the sentiment is Negative. The current price of 8.04 is above the 20-day moving average (MA) of 7.49, below the 50-day MA of 8.11, and below the 200-day MA of 10.51, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 20.93 is Positive, neither overbought nor oversold. The STOCH value of 11.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VAISHALI.

Vaishali Pharma Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIOFILCHEM	63 Neutral	₹493.42M	172.45	―	―	36.76%	433.63%
BAFNAPH	58 Neutral	₹2.52B	48.53	―	―	-0.77%	2055.99%
BALPHARMA	58 Neutral	₹1.14B	16.40	―	1.62%	-9.07%	5.36%
VAISHALI	54 Neutral	₹697.82M	21.33	―	―	18.35%	-154.65%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AAREYDRUGS	48 Neutral	₹1.98B	84.53	―	―	-17.47%	-50.07%
KREBSBIO	41 Neutral	₹1.19B	-11.90	―	―	-46.31%	-26.28%

Vaishali Pharma Ltd. Corporate Events

Vaishali Pharma Clarifies Preferential Issue Pricing in NSE-Directed Postal Ballot Corrigendum

Vaishali Pharma Ltd. has issued a corrigendum to its postal ballot notice following directions from the National Stock Exchange, providing additional details and amendments under SEBI’s capital and disclosure rules. The update clarifies the valuation basis and pricing for subscription shares to be allotted on a preferential basis, setting a floor price of Rs 9.46 per share and a final issue price of Rs 20 per share, which could influence shareholder dilution, capital structure, and market perception of the company’s equity valuation.

The corrigendum specifies that the issue price is derived from a registered valuer’s reports and volume-weighted average prices over 90 and 10 trading days preceding the relevant date. By formally aligning the preferential allotment pricing with regulatory requirements and disclosing the equity swap and valuation methodology, the company seeks to reinforce compliance, transparency, and investor confidence ahead of the ongoing remote e-voting on the proposed transaction.