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Check Before You Invest : Kilitch Drugs (India) Ltd

BSE: 524500 NSE: KILITCH ISIN: INE729D01010
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Kilitch Drugs (India) Ltd belong to?
Kilitch Drugs (India) Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Kilitch Drugs (India) Ltd a good quality company?
Kilitch Drugs (India) 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 Kilitch Drugs (India) Ltd undervalued or overvalued?
Kilitch Drugs (India) Ltd appears Somewhat overvalued, as its key valuation ratios are higher 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 19.73 24.92
Price to Book 1.92 1.85
Price to Sales 3.39 3.38
EV to EBITDA 15.49 17.99
Q.4 Is Kilitch Drugs (India) Ltd a good buy now?
Kilitch Drugs (India) Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Kilitch Drugs (India) Ltd?
Kilitch Drugs (India) Ltd revenue growth is 38% for FY-2025, which is above its 5-year CAGR of 24.47%, indicating faster growth.

Q.2 Gross Profit margin of Kilitch Drugs (India) Ltd?
Kilitch Drugs (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.4% for FY-2025, which is above its 5-year median of 17.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Kilitch Drugs (India) Ltd?
Kilitch Drugs (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.14% for FY-2025, which is above its 5-year median of 14.72% indicating increasing margins.

Q.4 Net Profit Margin of Kilitch Drugs (India) Ltd?
Kilitch Drugs (India) Ltd Net Profit Margin is 17.16% for FY-2025, is above its 5-year median of 13.34%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 23.4 17.7
Operating Profit Margin (%) 17.14 14.72
Net Profit Margin (%) 17.16 13.34

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Kilitch Drugs (India) Ltd?
Kilitch Drugs (India) Ltd Return on Asset is 9.73%, which is above its 5-year historical median of 6.53%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Kilitch Drugs (India) Ltd?
Kilitch Drugs (India) Ltd Return on capital employed is 15.49% for FY-2025, which is above its 5-year historical median of 9.9%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Kilitch Drugs (India) Ltd?
Kilitch Drugs (India) Ltd Return on equity is 13.11% for FY-2025, which is above its 5-year historical median of 8.51%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Kilitch Drugs (India) Ltd?
Kilitch Drugs (India) Ltd Cash conversion cycle is 58 days, above its 5-year historical median of 55 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) 0.57 0.49
ROE (%) 13.11 8.51
ROCE (%) 15.49 9.9
Cash Conversion Cycle 58 days 55 days

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

Q.9 Debt to Equity ratio of Kilitch Drugs (India) Ltd?
Kilitch Drugs (India) Ltd Debt-to-Equity ratio is 0.19, which is above the industry average of 0.14, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Kilitch Drugs (India) Ltd?
Kilitch Drugs (India) Ltd Debt to cash flow from operations is 3.22, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Kilitch Drugs (India) Ltd?

Q.1 Promoter shareholding and pledge status of Kilitch Drugs (India) Ltd?
Promoters hold 63.77% of the Kilitch Drugs (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Kilitch Drugs (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Kilitch Drugs (India) Ltd vs industry peers?
Kilitch Drugs (India) Ltd revenue CAGR is 24.47%, 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 (%) 38 5.4
Gross Profit Growth (%) 68 14
Operating Profit Growth (%) 55 11.5
Net Profit Growth (%) 72.2 12
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.57 0.79
ROE (%) 13.11 9.17
ROCE (%) 15.49 11.52
Cash Conversion Cycle (days) 57.86 76

Valuation & price assessment

Q.1 Stock return of Kilitch Drugs (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 25.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
25.6% 18.4% 20.1% -18.2%
Q.2 Valuation ratios of Kilitch Drugs (India) Ltd vs historical?
The current P/E ratio of 19.73 is lower than its historical median of 24.92, indicating that the stock is trading below 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 19.73 24.92 31.09
Price to Book 1.92 1.85 2.85
Price to Sales 3.39 3.38 2.82
EV to EBITDA 15.49 17.99 15.99

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