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Check Before You Invest : Cohance Lifesciences Ltd

BSE: 543064 NSE: COHANCE ISIN: INE03QK01018
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Cohance Lifesciences Ltd belong to?
Cohance Lifesciences Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Cohance Lifesciences Ltd a good quality company?
Cohance Lifesciences Ltd is a good quality company, based on a consistently good 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 Cohance Lifesciences Ltd undervalued or overvalued?
Cohance Lifesciences 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 89.76 36.68
Price to Book 4.11 8.52
Price to Sales 7.09 12.45
EV to EBITDA 35.13 30.16
Q.4 Is Cohance Lifesciences Ltd a good buy now?
Cohance Lifesciences 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 Cohance Lifesciences Ltd?
Cohance Lifesciences Ltd revenue growth is 13.9% for FY-2025, which is above its 5-year CAGR of 7.51%, indicating faster growth.

Q.2 Gross Profit margin of Cohance Lifesciences Ltd?
Cohance Lifesciences Ltd Gross profit margin which is the profit after deduction of direct costs, is 35.2% for FY-2025, which is below its 5-year median of 44.1%, indicating decreasing margins.

Q.3 Operating Profit Margin of Cohance Lifesciences Ltd?
Cohance Lifesciences Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 31.34% for FY-2025, which is below its 5-year median of 42.84% indicating decreasing margins.

Q.4 Net Profit Margin of Cohance Lifesciences Ltd?
Cohance Lifesciences Ltd Net Profit Margin is 22.11% for FY-2025, is below its 5-year median of 30.69%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 35.2 44.1
Operating Profit Margin (%) 31.34 42.84
Net Profit Margin (%) 22.11 30.69

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Cohance Lifesciences Ltd?
Cohance Lifesciences Ltd Return on Asset is 10.02%, which is below its 5-year historical median of 20.18%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Cohance Lifesciences Ltd?
Cohance Lifesciences Ltd Return on capital employed is 18.44% for FY-2025, which is below its 5-year historical median of 33.41%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Cohance Lifesciences Ltd?
Cohance Lifesciences Ltd Return on equity is 14.2% for FY-2025, which is below its 5-year historical median of 25.21%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Cohance Lifesciences Ltd?
Cohance Lifesciences Ltd Cash conversion cycle is 95 days, above its 5-year historical median of 89 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) 0.45 0.66
ROE (%) 14.2 25.21
ROCE (%) 18.44 33.41
Cash Conversion Cycle 95 days 89 days

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

Q.9 Debt to Equity ratio of Cohance Lifesciences Ltd?
Cohance Lifesciences Ltd Debt-to-Equity ratio is 0.05, which is lower the industry average of 0.14, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Cohance Lifesciences Ltd?
Cohance Lifesciences Ltd Debt to cash flow from operations is 0.27, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Cohance Lifesciences Ltd?

Q.1 Promoter shareholding and pledge status of Cohance Lifesciences Ltd?
Promoters hold 57.49% of the Cohance Lifesciences Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Cohance Lifesciences Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Cohance Lifesciences Ltd vs industry peers?
Cohance Lifesciences Ltd revenue CAGR is 7.51%, compared to the industry median CAGR of 5.35%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 13.9 5.4
Gross Profit Growth (%) -8.5 14
Operating Profit Growth (%) -7.6 11.5
Net Profit Growth (%) -11.7 12
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.45 0.79
ROE (%) 14.2 9.17
ROCE (%) 18.44 11.52
Cash Conversion Cycle (days) 95.46 76

Valuation & price assessment

Q.1 Stock return of Cohance Lifesciences Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -4.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- -4.2% -4.1% -61.2%
Q.2 Valuation ratios of Cohance Lifesciences Ltd vs historical?
The current P/E ratio of 89.76 is higher than its historical median of 36.68, 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 89.76 36.68 31.09
Price to Book 4.11 8.52 2.85
Price to Sales 7.09 12.45 2.82
EV to EBITDA 35.13 30.16 15.99

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