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Check Before You Invest : Balaxi Pharmaceuticals Ltd

BSE: 0 NSE: BALAXI ISIN: INE618N01022
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Balaxi Pharmaceuticals Ltd belong to?
Balaxi Pharmaceuticals Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Balaxi Pharmaceuticals Ltd a good quality company?
Balaxi Pharmaceuticals Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Balaxi Pharmaceuticals Ltd undervalued or overvalued?
Balaxi Pharmaceuticals Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 42.21 38.82
Price to Book 1.21 5.21
Price to Sales 2.29 4.83
EV to EBITDA 19.69 27.19
Q.4 Is Balaxi Pharmaceuticals Ltd a good buy now?
Balaxi Pharmaceuticals Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Balaxi Pharmaceuticals Ltd?
Balaxi Pharmaceuticals Ltd revenue growth is -13.1% for FY-2025, which is below its 5-year CAGR of 5.97%, indicating slower growth.

Q.2 Gross Profit margin of Balaxi Pharmaceuticals Ltd?
Balaxi Pharmaceuticals Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.4% for FY-2025, which is below its 5-year median of 19.7%, indicating decreasing margins.

Q.3 Operating Profit Margin of Balaxi Pharmaceuticals Ltd?
Balaxi Pharmaceuticals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.27% for FY-2025, which is below its 5-year median of 15.6% indicating decreasing margins.

Q.4 Net Profit Margin of Balaxi Pharmaceuticals Ltd?
Balaxi Pharmaceuticals Ltd Net Profit Margin is 5.91% for FY-2025, is below its 5-year median of 14.48%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 9.4 19.7
Operating Profit Margin (%) 4.27 15.6
Net Profit Margin (%) 5.91 14.48

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Balaxi Pharmaceuticals Ltd?
Balaxi Pharmaceuticals Ltd Return on Asset is 2.19%, which is below its 5-year historical median of 15.33%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Balaxi Pharmaceuticals Ltd?
Balaxi Pharmaceuticals Ltd Return on capital employed is 5.12% for FY-2025, which is below its 5-year historical median of 28.22%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Balaxi Pharmaceuticals Ltd?
Balaxi Pharmaceuticals Ltd Return on equity is 2.93% for FY-2025, which is below its 5-year historical median of 23.22%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Balaxi Pharmaceuticals Ltd?
Balaxi Pharmaceuticals Ltd Cash conversion cycle is 432 days, above its 5-year historical median of 154 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.37 1.02
ROE (%) 2.93 23.22
ROCE (%) 5.12 28.22
Cash Conversion Cycle 432 days 154 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Balaxi Pharmaceuticals Ltd?
Balaxi Pharmaceuticals Ltd Debt-to-Equity ratio is 0.24, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Balaxi Pharmaceuticals Ltd?
Balaxi Pharmaceuticals Ltd Debt to cash flow from operations is -4, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Balaxi Pharmaceuticals Ltd?

Q.1 Promoter shareholding and pledge status of Balaxi Pharmaceuticals Ltd?
Promoters hold 65.99% of the Balaxi Pharmaceuticals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Balaxi Pharmaceuticals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Balaxi Pharmaceuticals Ltd vs industry peers?
Balaxi Pharmaceuticals Ltd revenue CAGR is 5.97%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -13.1 -
Gross Profit Growth (%) - 17.9
Operating Profit Growth (%) -40 16.4
Net Profit Growth (%) - 17.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.37 0.52
ROE (%) 2.93 2.05
ROCE (%) 5.12 3.6
Cash Conversion Cycle (days) 432.23 46

Valuation & price assessment

Q.1 Stock return of Balaxi Pharmaceuticals Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -44.86% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- -44.9% -61.7% -44.3%
Q.2 Valuation ratios of Balaxi Pharmaceuticals Ltd vs historical?
The current P/E ratio of 42.21 is higher than its historical median of 38.82, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 42.21 38.82 33.62
Price to Book 1.21 5.21 1.57
Price to Sales 2.29 4.83 2.21
EV to EBITDA 19.69 27.19 14.09

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