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Zim Laboratories Ltd. (IN:ZIMLAB)
:ZIMLAB
India Market
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Zim Laboratories Ltd. (ZIMLAB) AI Stock Analysis

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IN:ZIMLAB

Zim Laboratories Ltd.

(ZIMLAB)

Rating:54Neutral
Price Target:
₹82.00
▲(10.51% 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. (ZIMLAB) vs. iShares MSCI India ETF (INDA)

Zim Laboratories Ltd. Business Overview & Revenue Model

Company DescriptionZim 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 MoneyZim 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. shows strong revenue growth and operational efficiency, with stable margins and improved operating cash flow. However, the decline in net profit margin and low free cash flow are concerns. The balance sheet is robust, but leverage has increased.
Income Statement
74
Positive
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
68
Positive
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
61
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.79B3.74B3.68B3.99B3.34B3.07B
Gross Profit1.92B730.04M1.86B903.81M810.86M1.48B
EBITDA495.11M495.11M462.10M582.00M452.62M355.31M
Net Income121.65M121.65M172.46M244.34M145.50M73.17M
Balance Sheet
Total Assets4.72B4.72B4.47B3.42B3.42B3.25B
Cash, Cash Equivalents and Short-Term Investments27.99M27.99M96.41M64.66M34.20M13.93M
Total Debt1.18B1.18B1.12B620.00M533.14M823.20M
Total Liabilities2.20B2.20B2.08B1.41B1.66B1.64B
Stockholders Equity2.52B2.52B2.39B2.00B1.76B1.61B
Cash Flow
Free Cash Flow0.003.57M-576.45M15.00M339.81M253.74M
Operating Cash Flow0.00411.55M162.78M381.68M492.06M318.51M
Investing Cash Flow0.00-399.27M-730.13M-362.04M-145.71M-58.81M
Financing Cash Flow0.00-91.05M595.34M5.46M-329.70M-259.74M

Zim Laboratories Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price74.20
Price Trends
50DMA
96.44
Negative
100DMA
95.46
Negative
200DMA
97.57
Negative
Market Momentum
MACD
-5.84
Negative
RSI
32.78
Neutral
STOCH
50.38
Neutral
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 74.2 is below the 20-day moving average (MA) of 75.69, below the 50-day MA of 96.44, and below the 200-day MA of 97.57, indicating a bearish trend. The MACD of -5.84 indicates Negative momentum. The RSI at 32.78 is Neutral, neither overbought nor oversold. The STOCH value of 50.38 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
₹6.18B11.48
9.15%88.32%
65
Neutral
₹4.58B72.68
0.62%-9.14%-91.11%
58
Neutral
₹3.57B47.55
19.40%1286.88%
54
Neutral
₹3.65B38.50
-3.36%-47.58%
54
Neutral
₹4.71B47.59
0.29%-9.90%33.18%
51
Neutral
$7.92B-0.43-41.67%2.21%22.29%-1.85%
43
Neutral
₹3.29B30.02
-3.41%-3028.44%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ZIMLAB
Zim Laboratories Ltd.
74.20
-45.50
-38.01%
IN:ALBERTDAVD
Albert David Ltd
801.55
-734.79
-47.83%
IN:LYKALABS
Lyka Labs Limited
99.22
-56.78
-36.40%
IN:MEDICAMEQ
Medicamen Biotech Limited
351.15
-77.37
-18.06%
IN:NECLIFE
Nectar Lifesciences Ltd.
14.66
-37.03
-71.64%
IN:VENUSREM
Venus Remedies Limited
462.00
105.15
29.47%
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.Date of analysis: Aug 06, 2025