Zim Laboratories Ltd. (ZIMLAB) AI Stock Analysis

• Market Cap: ₹3.33B
• Dividend Yield: N/A
• Average Volume (3M): 6.28K
• Price to Earnings (P/E): 50.6
• Beta (1Y): 1.08
• Revenue Growth: -5.82%
• EPS Growth: -59.22%
• Country: IN
• Employees: 556
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.09
• Shares Outstanding: 48,735,813
• 10 Day Avg. Volume: 5,950
• 30 Day Avg. Volume: 6,279
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ₹78.00 ▲(9.69% Upside)

Zim Laboratories Ltd. scores moderately due to strong financial performance with revenue growth and operational efficiency. However, the stock's overvaluation and neutral technical indicators weigh down the overall score. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

The company's consistent revenue growth and operational efficiency highlight its ability to expand market presence and maintain competitive advantage.

Operational Efficiency

Improved gross profit margins demonstrate effective cost control, enhancing long-term profitability and competitiveness.

Cash Flow Improvement

Enhanced operating cash flow strengthens liquidity, providing flexibility for strategic investments and debt management.

Negative Factors

Decline in Net Profit Margin

A declining net profit margin can signal challenges in maintaining profitability, potentially impacting future earnings.

Low Free Cash Flow

Low free cash flow limits the company's ability to reinvest in growth opportunities and manage debt effectively.

Increased Leverage

Rising leverage can increase financial risk, potentially affecting the company's ability to finance operations and growth.

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, concerns include a decline in net profit margin and low free cash flow, alongside increased leverage.

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	454.76M	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: 71.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 71.11 is above the 20-day moving average (MA) of 70.40, below the 50-day MA of 71.85, and below the 200-day MA of 84.69, indicating a bearish trend. The MACD of -0.82 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 25.23 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	72 Outperform	₹9.72B	13.81	―	―	13.32%	218.38%
ZIMLAB	63 Neutral	₹3.33B	50.60	―	―	-5.82%	-59.22%
MEDICAMEQ	57 Neutral	₹5.29B	47.58	―	0.26%	-9.16%	49.09%
NECLIFE	52 Neutral	₹4.09B	-1.13	―	―	-30.27%	-3470.06%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ALBERTDAVD	51 Neutral	₹4.18B	-27.69	―	0.66%	-13.51%	-122.00%
LYKALABS	51 Neutral	₹2.86B	139.15	―	―	4.04%	-35.02%

Zim Laboratories Ltd. Corporate Events

Zim Laboratories to Close Trading Window Ahead of December Quarter Results

Zim Laboratories Limited has announced the closure of its trading window for company securities starting 1 January 2026, in line with SEBI (Prohibition of Insider Trading) Regulations, 2015 and its internal code of conduct for regulating, monitoring and reporting trading by insiders. The restriction applies to designated persons, including promoters, directors, key managerial personnel, connected persons, specified employees and their immediate relatives, and will remain in force until 48 hours after the company discloses its financial results for the quarter and nine months ended 31 December 2025, underscoring ongoing adherence to regulatory norms and governance standards around unpublished price-sensitive information.

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.