Zim Laboratories Ltd. (ZIMLAB) AI Stock Analysis

• Market Cap: ₹3.68B
• Dividend Yield: N/A
• Average Volume (3M): 22.07K
• Price to Earnings (P/E): 39.2
• Beta (1Y): 0.89
• Revenue Growth: -3.36%
• EPS Growth: -47.58%
• Country: IN
• Employees: 556
• Sector: Healthcare
• Sector Strength: 43
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.39
• Shares Outstanding: 48,725,815
• 10 Day Avg. Volume: 36,145
• 30 Day Avg. Volume: 22,065
• 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: ₹82.00
• Price Target Upside: 7.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ₹82.00 ▲(7.19% Upside)

The overall stock score of 54 reflects strong financial performance, particularly in revenue growth and operational efficiency. However, bearish technical indicators and a high P/E ratio suggest caution. The lack of dividend yield and increased leverage are additional concerns.

Zim Laboratories Ltd. Business Overview & Revenue Model

Company Description

Zim Laboratories Ltd. (ZIMLAB) is a pharmaceutical company focused on the development, manufacturing, and marketing of a wide range of drug delivery solutions. The company operates in the healthcare and pharmaceutical sectors, offering innovative formulations for oral dosage forms, including tablets, capsules, and pellets. Zim Laboratories is known for its expertise in oral thin films and taste masking technologies, catering to both domestic and international markets.

How the Company Makes Money

Zim Laboratories Ltd. generates revenue primarily through the sale of its pharmaceutical products, which include a diverse portfolio of proprietary drug formulations. The company's revenue streams are derived from both direct sales to healthcare providers and pharmaceutical companies, as well as from contract manufacturing services, where ZimLAB develops and produces drugs on behalf of other companies. Additionally, ZimLAB benefits from strategic partnerships and collaborations in the pharmaceutical industry, which enhance its market reach and contribute to its earnings. The company's focus on innovative drug delivery solutions and expanding its product offerings to meet the needs of global markets also plays a significant role in its financial performance.

Zim Laboratories Ltd. Financial Statement Overview

Summary

Zim Laboratories Ltd. exhibits strong revenue growth and operational efficiency, reflected in stable margins and improved cash flow from operations. However, the decline in net profit margin and low free cash flow are areas of concern. The balance sheet is robust with a healthy equity position, though leverage has increased.

Income Statement

Zim Laboratories Ltd. has demonstrated solid revenue growth over the years, with a notable increase from 2024 to 2025. Gross profit margins have improved, indicating efficient cost management. However, the net profit margin saw a decline in 2025 due to lower net income despite higher revenues. EBIT and EBITDA margins have been stable, showcasing operational efficiency, though the recent dip in EBIT margin is a concern.

Balance Sheet

The company maintains a strong equity position, with an improving equity ratio indicating a healthy balance between assets and liabilities. The debt-to-equity ratio is manageable, though it has increased slightly, hinting at rising leverage. ROE has fluctuated, reflecting changes in profitability but remains at a reasonable level.

Cash Flow

Operating cash flow has improved significantly, which is a positive sign for liquidity. However, free cash flow remains low, with capital expenditures consuming a large portion of operating cash flow. The free cash flow to net income ratio remains weak, indicating challenges in converting net income into cash.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.79B	3.68B	3.99B	3.34B	3.07B
Gross Profit	2.11B	1.86B	903.81M	810.86M	1.48B
EBITDA	495.11M	462.10M	582.00M	452.62M	355.31M
Net Income	121.65M	172.46M	244.34M	145.50M	73.17M
Balance Sheet
Total Assets	4.72B	4.47B	3.42B	3.42B	3.25B
Cash, Cash Equivalents and Short-Term Investments	27.99M	96.41M	64.66M	34.20M	13.93M
Total Debt	1.18B	1.12B	620.00M	533.14M	823.20M
Total Liabilities	2.20B	2.08B	1.41B	1.66B	1.64B
Stockholders Equity	2.52B	2.39B	2.00B	1.76B	1.61B
Cash Flow
Free Cash Flow	3.57M	-576.45M	15.00M	339.81M	253.74M
Operating Cash Flow	411.55M	162.78M	381.68M	492.06M	318.51M
Investing Cash Flow	-399.27M	-730.13M	-362.04M	-145.71M	-58.81M
Financing Cash Flow	-91.05M	595.34M	5.46M	-329.70M	-259.74M

Zim Laboratories Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.50
• 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:ZIMLAB, the sentiment is Negative. The current price of 76.5 is below the 20-day moving average (MA) of 100.52, below the 50-day MA of 105.74, and below the 200-day MA of 99.97, indicating a bearish trend. The MACD of -9.35 indicates Positive momentum. The RSI at 22.19 is Positive, neither overbought nor oversold. The STOCH value of 4.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ZIMLAB.

Zim Laboratories Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VENUSREM	72 Outperform	₹6.31B	11.75		―	9.15%	88.32%
ALBERTDAVD	65 Neutral	₹4.66B	74.06		0.61%	-9.14%	-91.11%
Sector *	62 Neutral	€1.85B	21.43	10.06%	2.08%	7.83%	13.92%
LYKALABS	58 Neutral	₹3.56B	47.46		―	19.40%	1286.88%
ZIMLAB	54 Neutral	₹3.68B	39.17		―	-3.36%	-47.58%
MEDICAMEQ	54 Neutral	₹4.81B	50.94		0.29%	-9.90%	25.41%
NECLIFE	43 Neutral	₹3.27B	30.02		―	-0.74%	-2375.84%