Check Before You Invest : Orchid Pharma Ltd

Snapshot

Q.1 Which industry/sub-sector does Orchid Pharma Ltd belong to?

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

Q.2 Is Orchid Pharma Ltd a good quality company?

Orchid Pharma Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Orchid Pharma Ltd undervalued or overvalued?

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

Q.4 Is Orchid Pharma Ltd a good buy now?

Orchid Pharma 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 Orchid Pharma Ltd?

Orchid Pharma Ltd revenue growth is 12.5% for FY-2025, which is below its 5-year CAGR of 13.89%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Orchid Pharma Ltd?

Orchid Pharma Ltd Return on capital employed is 8.52% for FY-2025, which is in line with its 5-year historical median of 8.52%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Orchid Pharma Ltd?

Orchid Pharma Ltd Return on Asset is 6.56%, which is above its 5-year historical median of 4.77%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Orchid Pharma Ltd?

Orchid Pharma Ltd Return on equity is 8.38% for FY-2025, which is above its 5-year historical median of 7.84%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Orchid Pharma Ltd?

Orchid Pharma Ltd Cash conversion cycle is 127 days, below its 5-year historical median of 140 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	0.57	0.57
ROE	8.38	7.84
ROCE	8.52	8.52
Cash Conversion Cycle	127 days	140 days

Q.6 Gross Profit margin of Orchid Pharma Ltd?

Orchid Pharma Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.3% for FY-2025, which is above its 5-year median of 10.6%, indicating increasing margins.

Q.7 Operating Profit Margin of Orchid Pharma Ltd?

Orchid Pharma Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.03% for FY-2025, which is below its 5-year median of 12.68% indicating decreasing margins.

Q.8 Net Profit Margin of Orchid Pharma Ltd?

Orchid Pharma Ltd Net Profit Margin is 11.55% for FY-2025, is above with its 5-year median of 8.3%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	15.3	10.6
Operating Profit Margin	12.03	12.68
Net Profit Margin	11.55	8.3

Q.9 Debt to Equity ratio of Orchid Pharma Ltd?

Orchid Pharma Ltd Debt-to-Equity ratio is 0.13, which is lower with the industry average of 0.27, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Orchid Pharma Ltd?

Orchid Pharma Ltd Debt to cash flow from operations is 6.34, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Orchid Pharma Ltd?

Promoters hold 69.84% of the Orchid Pharma Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Orchid Pharma Ltd vs industry peers?

Orchid Pharma Ltd revenue CAGR is 13.89%, 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	12.5	8.3
Gross Profit Growth	12.8	14.7
Operating Profit Growth	-	11.4
Net Profit Growth	11.6	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.57	0.81
ROE	8.38	9.49
ROCE	8.52	11.91
Cash Conversion Cycle (days)	127.02	85

Valuation & price assessment

Q.1 Stock return of Orchid Pharma Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 31.4% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	31.4%	-15.5%	17.2%	-20.8%

Q.3 Valuation ratios of Orchid Pharma 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	75.09	43.89	31.09
Price to Book	2.38	2.60	2.85
Price to Sales	3.93	4.00	2.79
EV to EBITDA	32.88	29.65	15.87

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