Check Before You Invest : Beta Drugs Ltd

Snapshot

Q.1 Which industry/sub-sector does Beta Drugs Ltd belong to?

Beta Drugs Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Beta Drugs Ltd a good quality company?

Beta Drugs Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Beta Drugs Ltd undervalued or overvalued?

Beta Drugs Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Beta Drugs Ltd a good buy now?

Beta Drugs 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

Q.1 Revenue growth of Beta Drugs Ltd?

Beta Drugs Ltd revenue growth is 11.4% for FY-2025, which is below its 5-year CAGR of 27.51%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Beta Drugs Ltd?

Beta Drugs Ltd Return on capital employed is 13.53% for FY-2025, which is below its 5-year historical median of 26.91%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Beta Drugs Ltd?

Beta Drugs Ltd Return on Asset is 6.21%, which is below its 5-year historical median of 14.03%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Beta Drugs Ltd?

Beta Drugs Ltd Return on equity is 12.6% for FY-2025, which is below its 5-year historical median of 20.23%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Beta Drugs Ltd?

Beta Drugs Ltd Cash conversion cycle is 46 days, below its 5-year historical median of 49 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.89	1.23
ROE	12.6	20.23
ROCE	13.53	26.91
Cash Conversion Cycle	46 days	49 days

Q.6 Gross Profit margin of Beta Drugs Ltd?

Beta Drugs Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.9% for FY-2025, which is below its 5-year median of 19.1%, indicating decreasing margins.

Q.7 Operating Profit Margin of Beta Drugs Ltd?

Beta Drugs Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.27% for FY-2025, which is below its 5-year median of 19.28% indicating decreasing margins.

Q.8 Net Profit Margin of Beta Drugs Ltd?

Beta Drugs Ltd Net Profit Margin is 7.01% for FY-2025, is below with its 5-year median of 11.1%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	14.9	19.1
Operating Profit Margin	14.27	19.28
Net Profit Margin	7.01	11.1

Q.9 Debt to Equity ratio of Beta Drugs Ltd?

Beta Drugs Ltd Debt-to-Equity ratio is 0.99, which is above with the industry average of 0.27, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Beta Drugs Ltd?

Beta Drugs Ltd Debt to cash flow from operations is 7.07, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Beta Drugs Ltd?

Promoters hold 64.63% of the Beta Drugs Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Beta Drugs Ltd vs industry peers?

Beta Drugs Ltd revenue CAGR is 27.51%, compared to the industry median CAGR of 8.30%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	11.4	8.3
Gross Profit Growth	-2.9	14.7
Operating Profit Growth	-8.8	11.4
Net Profit Growth	-31.8	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.89	0.81
ROE	12.6	9.49
ROCE	13.53	11.91
Cash Conversion Cycle (days)	45.69	85

Valuation & price assessment

Q.1 Stock return of Beta Drugs Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 48.54% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	48.5%	19%	-21.5%

Q.3 Valuation ratios of Beta Drugs Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	89.81	69.08	31.09
Price to Book	7.38	10.44	2.85
Price to Sales	6.29	6.82	2.79
EV to EBITDA	36.47	35.14	15.87

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