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Check Before You Invest : Makers Laboratories Ltd

BSE: 506919 NSE: ISIN: INE987A01010
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Makers Laboratories Ltd belong to?
Makers Laboratories Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Makers Laboratories Ltd a good quality company?
Makers Laboratories Ltd is a quality company, based on a 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 Makers Laboratories Ltd undervalued or overvalued?
Makers Laboratories 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 - -
Price to Book 1.72 1.55
Price to Sales 1.95 1.75
EV to EBITDA 204.51 8.58
Q.4 Is Makers Laboratories Ltd a good buy now?
Makers Laboratories Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. 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 Makers Laboratories Ltd?
Makers Laboratories Ltd revenue growth is -12.5% for FY-2025, which is below its 5-year CAGR of -3.53%, indicating slower growth.

Q.2 Gross Profit margin of Makers Laboratories Ltd?
Makers Laboratories Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.1% for FY-2025, which is above its 5-year median of 4.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Makers Laboratories Ltd?
Makers Laboratories Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -5.14% for FY-2025, which is in line with its 5-year median of -5.14% indicating stable margins.

Q.4 Net Profit Margin of Makers Laboratories Ltd?
Makers Laboratories Ltd Net Profit Margin is 10.81% for FY-2025, is above its 5-year median of -3.64%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 18.1 4.2
Operating Profit Margin (%) -5.14 -5.14
Net Profit Margin (%) 10.81 -3.64

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Makers Laboratories Ltd?
Makers Laboratories Ltd Return on Asset is 5.89%, which is above its 5-year historical median of -2.11%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Makers Laboratories Ltd?
Makers Laboratories Ltd Return on capital employed is 9.67% for FY-2025, which is above its 5-year historical median of -0.8%. 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 Makers Laboratories Ltd?
Makers Laboratories Ltd Return on equity is 8.63% for FY-2025, which is above its 5-year historical median of -3.43%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Makers Laboratories Ltd?
Makers Laboratories Ltd Cash conversion cycle is 67 days, below its 5-year historical median of 88 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 (x) 0.55 0.57
ROE (%) 8.63 -3.43
ROCE (%) 9.67 -0.8
Cash Conversion Cycle 67 days 88 days

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

Q.9 Debt to Equity ratio of Makers Laboratories Ltd?
Makers Laboratories Ltd Debt-to-Equity ratio is 0.01, 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 Makers Laboratories Ltd?
Makers Laboratories Ltd Debt to cash flow from operations is -0.19, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Makers Laboratories Ltd?

Q.1 Promoter shareholding and pledge status of Makers Laboratories Ltd?
Promoters hold 61.27% of the Makers Laboratories Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Makers Laboratories Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Makers Laboratories Ltd vs industry peers?
Makers Laboratories Ltd revenue CAGR is -3.53%, compared to the industry median CAGR of 5.35%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -12.5 5.4
Gross Profit Growth (%) 0 14
Operating Profit Growth (%) 0 11.5
Net Profit Growth (%) 0 12
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.55 0.79
ROE (%) 8.63 9.17
ROCE (%) 9.67 11.52
Cash Conversion Cycle (days) 66.76 76

Valuation & price assessment

Q.1 Stock return of Makers Laboratories Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
8.3% -6.2% 14.1% -0.7%
Q.2 Valuation ratios of Makers Laboratories Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near 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 - - 31.09
Price to Book 1.72 1.55 2.85
Price to Sales 1.95 1.75 2.82
EV to EBITDA 204.51 8.58 15.99

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