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Check Before You Invest : Anlon Healthcare Ltd

BSE: 544497 NSE: AHCL ISIN: INE0Y8W01025
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Anlon Healthcare Ltd belong to?
Anlon Healthcare Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Anlon Healthcare Ltd a good quality company?
Anlon Healthcare 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 Anlon Healthcare Ltd undervalued or overvalued?
Anlon Healthcare 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 3-year
Historic Median
Price to Earnings 35.9 34.17
Price to Book 2.7 3.29
Price to Sales 6.12 5.83
EV to EBITDA 23.52 22.78
Q.4 Is Anlon Healthcare Ltd a good buy now?
Anlon Healthcare 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 Anlon Healthcare Ltd?
Anlon Healthcare Ltd revenue growth is 80.7% for FY-2025, which is above its 3-year CAGR of 28.16%, indicating faster growth.

Q.2 Gross Profit margin of Anlon Healthcare Ltd?
Anlon Healthcare Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.8% for FY-2025, which is above its 3-year median of 17.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Anlon Healthcare Ltd?
Anlon Healthcare Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.17% for FY-2025, which is above its 3-year median of 23.64% indicating increasing margins.

Q.4 Net Profit Margin of Anlon Healthcare Ltd?
Anlon Healthcare Ltd Net Profit Margin is 17.06% for FY-2025, is above its 3-year median of 14.5%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 23.8 17.5
Operating Profit Margin (%) 27.17 23.64
Net Profit Margin (%) 17.06 14.5

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Anlon Healthcare Ltd?
Anlon Healthcare Ltd Return on Asset is 13.27%, which is above its 3-year historical median of 8.06%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Anlon Healthcare Ltd?
Anlon Healthcare Ltd Return on capital employed is 24.83% for FY-2025, which is above its 3-year historical median of 15.48%. 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 Anlon Healthcare Ltd?
Anlon Healthcare Ltd Return on equity is 40.45% for FY-2025, which is below its 3-year historical median of 67.99%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Anlon Healthcare Ltd?
Anlon Healthcare Ltd Cash conversion cycle is 226 days, in line with its 3-year historical median of 226 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 0.78 0.78
ROE (%) 40.45 67.99
ROCE (%) 24.83 15.48
Cash Conversion Cycle 226 days 226 days

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

Q.9 Debt to Equity ratio of Anlon Healthcare Ltd?
Anlon Healthcare Ltd Debt-to-Equity ratio is 0.83, 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 Anlon Healthcare Ltd?
Anlon Healthcare Ltd Debt to cash flow from operations is -2.95, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Anlon Healthcare Ltd?

Q.1 Promoter shareholding and pledge status of Anlon Healthcare Ltd?
Promoters hold 52.68% of the Anlon Healthcare Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Anlon Healthcare Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Anlon Healthcare Ltd vs industry peers?
Anlon Healthcare Ltd revenue CAGR is 28.16%, compared to the industry median CAGR of 6.81%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 80.7 6.8
Gross Profit Growth (%) 141.7 12.6
Operating Profit Growth (%) 106.3 9.5
Net Profit Growth (%) 110 8.6
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.78 0.75
ROE (%) 40.45 9.05
ROCE (%) 24.83 11.33
Cash Conversion Cycle (days) 225.79 83

Valuation & price assessment

Q.1 Stock return of Anlon Healthcare Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Anlon Healthcare Ltd vs historical?
The current P/E ratio of 35.9 is higher than its historical median of 34.17, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 35.9 34.17 33.73
Price to Book 2.7 3.29 3.09
Price to Sales 6.12 5.83 3.38
EV to EBITDA 23.52 22.78 16.04

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