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Check Before You Invest : Unichem Laboratories Ltd

BSE: 506690 NSE: UNICHEMLAB ISIN: INE351A01035
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Unichem Laboratories Ltd belong to?
Unichem Laboratories Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Unichem Laboratories Ltd a good quality company?
Unichem Laboratories Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Unichem Laboratories Ltd undervalued or overvalued?
Unichem Laboratories Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Unichem Laboratories Ltd a good buy now?
Unichem Laboratories 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

Q.1 Revenue growth of Unichem Laboratories Ltd?
Unichem Laboratories Ltd revenue growth is 20.4% for FY-2025 , which is above its 5 year CAGR of 13.9% , indicating faster growth.
Q.2 Gross Profit margin of Unichem Laboratories Ltd?
Unichem Laboratories Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.5% for FY-2025 , which is above its 5 year median of 4.9% , indicating increasing margins.
Q.3 Operating Profit Margin of Unichem Laboratories Ltd?
Unichem Laboratories Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.63% for FY-2025 , which is above its 5 year median of 3.53% indicating increasing margins.
Q.4 Net Profit Margin of Unichem Laboratories Ltd?
Unichem Laboratories Ltd Net Profit Margin is 9.39% for FY-2025 , is above with its 5 year median of -5.88%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 16.5 4.9
Operating Profit Margin 14.63 3.53
Net Profit Margin 9.39 -5.88
Q.5 Return on Asset of Unichem Laboratories Ltd?
Unichem Laboratories Ltd Return on Asset is 5.48%, which is above its 5 year historical median of -1.78%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Unichem Laboratories Ltd?
Unichem Laboratories Ltd Return on equity is 6.87% for FY-2025 , which is above its historical median of -2.07%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Unichem Laboratories Ltd?
Unichem Laboratories Ltd Return on capital employed is 7.72% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Unichem Laboratories Ltd?
Unichem Laboratories Ltd Cash conversion cycle is 190 days, below its historical median of 191 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.58 0.37
ROE 6.87 -2.07
ROCE 7.72 -3.08
Cash Conversion Cycle 190 days 191 days
Q.9 Debt to Equity ratio of Unichem Laboratories Ltd?
Unichem Laboratories Ltd Debt-to-Equity ratio is 0.05 , which is lower with the industry average of 0.15 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Unichem Laboratories Ltd?
Unichem Laboratories Ltd Debt to cash flow from operations is 1.54 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Unichem Laboratories Ltd?
Promoters hold 70.22% of the Unichem Laboratories Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Unichem Laboratories Ltd vs industry peers?
Unichem Laboratories Ltd revenue CAGR is 13.92% , compared to the industry median CAGR of 5.54% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,735.7 137.1
Gross Profit 286.4 15.1
Operating Profit 254 16
Net Profit 163 5.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.58 0.8
ROE 6.87 8.91
ROCE 7.72 11.59
Cash Conversion Cycle (days) 190.25 76

Valuation & price assessment

Q.1 Stock return of Unichem Laboratories Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 4.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 4.4% 1.8% -3% -42.9%
Q.3 Valuation ratios of Unichem Laboratories Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 10.8 0.00 40.28
Price to Book 0.92 0.70 2.77
Price to Sales 1.61 2.02 2.65
EV to EBITDA 14.94 171.75 15.67

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