Zim Laboratories Ltd. (ZIMLAB) AI Stock Analysis

• Market Cap: ₹3.32B
• Dividend Yield: N/A
• Average Volume (3M): 4.23K
• Price to Earnings (P/E): 36.0
• Beta (1Y): 0.92
• Revenue Growth: -3.36%
• EPS Growth: -47.58%
• Country: IN
• Employees: 556
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.39
• Shares Outstanding: 48,735,813
• 10 Day Avg. Volume: 3,301
• 30 Day Avg. Volume: 4,228
• PEG Ratio: -1.14
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 1.15K
• 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

• Rating: 56 Neutral
• Price Target: ₹71.00 ▲(3.09% Upside)

Zim Laboratories Ltd. has a moderate overall stock score driven by strong financial performance but offset by technical indicators suggesting a bearish trend and a high P/E ratio indicating overvaluation. The lack of dividend yield further impacts its valuation appeal.

Zim Laboratories Ltd. Business Overview & Revenue Model

Company Description

ZIM Laboratories Limited develops, manufactures, and supplies pharmaceutical formulation and pre formulation ingredients in India and internationally. The company provides technology-based drug delivery solutions and non-infringing proprietary manufacturing processes for generic pharmaceutical products in semi-finished and finished categories/formulations, such as granules, pellets, taste masked powders, suspensions, tablets, capsules, and oral thin films. It serves therapeutic areas, such as urology, gastroenterology, cardiology, and anticoagulants, as well as antibiotics and anti-infectives, NSAIDs/pain analgesics, and vitamins and supplements. ZIM Laboratories Limited was incorporated in 1984 and is based in Nagpur, India.

How the Company Makes Money

Zim Laboratories Ltd. generates revenue through multiple streams, including the sale of pharmaceutical formulations and APIs to wholesalers, distributors, and healthcare providers. The company also engages in contract manufacturing services for other pharmaceutical firms, which contributes significantly to its earnings. Additionally, ZIMLAB's ongoing investment in research and development allows it to create proprietary products and expand into new markets, enhancing its revenue potential. Strategic partnerships with other pharmaceutical companies and collaborations for joint ventures further bolster its financial performance by providing access to new technologies and markets.

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

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.69B	3.74B	3.68B	3.99B	3.31B	3.07B
Gross Profit	2.07B	730.04M	1.86B	903.81M	1.67B	1.48B
EBITDA	462.10M	495.11M	462.10M	582.00M	452.62M	355.31M
Net Income	93.92M	121.65M	172.46M	244.34M	145.50M	73.17M
Balance Sheet
Total Assets	0.00	4.72B	4.47B	3.42B	3.42B	3.25B
Cash, Cash Equivalents and Short-Term Investments	20.37M	20.37M	96.41M	64.66M	34.20M	13.93M
Total Debt	0.00	1.18B	1.12B	620.00M	533.14M	823.20M
Total Liabilities	-2.52B	2.20B	2.08B	1.41B	1.66B	1.64B
Stockholders Equity	2.52B	2.52B	2.39B	2.00B	1.76B	1.61B
Cash Flow
Free Cash Flow	0.00	3.57M	-576.45M	15.00M	339.81M	253.74M
Operating Cash Flow	0.00	411.55M	162.78M	381.68M	492.06M	318.51M
Investing Cash Flow	0.00	-399.27M	-730.13M	-362.04M	-145.71M	-58.81M
Financing Cash Flow	0.00	-91.05M	595.34M	5.46M	-329.70M	-259.74M

Zim Laboratories Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 68.87 is below the 20-day moving average (MA) of 71.31, below the 50-day MA of 73.78, and below the 200-day MA of 91.56, indicating a bearish trend. The MACD of -2.11 indicates Negative momentum. The RSI at 33.25 is Neutral, neither overbought nor oversold. The STOCH value of 28.53 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VENUSREM	69 Neutral	₹6.06B	11.28	―	―	9.15%	88.32%
ALBERTDAVD	59 Neutral	₹4.57B	73.18	―	0.62%	-9.14%	-91.11%
MEDICAMEQ	59 Neutral	₹4.41B	49.73	―	0.27%	-9.90%	33.18%
LYKALABS	58 Neutral	₹3.38B	46.04	―	―	19.40%	1286.88%
ZIMLAB	56 Neutral	₹3.32B	35.97	―	―	-3.36%	-47.58%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
NECLIFE	43 Neutral	₹3.11B	30.02	―	―	-3.41%	-3028.44%

Zim Laboratories Ltd. Corporate Events

Zim Laboratories Confirms Regulatory Compliance for Q3 2025

Zim Laboratories Limited has announced compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending September 30, 2025. This compliance, confirmed by their Registrar and Transfer Agent, MUFG Intime India Private Limited, ensures that securities received for dematerialization have been processed correctly, maintaining the integrity of the company’s listings on stock exchanges.