Check Before You Invest : Kwality Pharmaceuticals Ltd

Snapshot

Q.1 Which industry/sub-sector does Kwality Pharmaceuticals Ltd belong to?

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

Q.2 Is Kwality Pharmaceuticals Ltd a good quality company?

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

Q.3 Is Kwality Pharmaceuticals Ltd undervalued or overvalued?

Kwality Pharmaceuticals Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Kwality Pharmaceuticals Ltd a good buy now?

Kwality Pharmaceuticals 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

Q.1 Revenue growth of Kwality Pharmaceuticals Ltd?

Kwality Pharmaceuticals Ltd revenue growth is 20.5% for FY-2025, which is below its 5-year CAGR of 21.7%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Kwality Pharmaceuticals Ltd?

Kwality Pharmaceuticals Ltd Return on capital employed is 18.3% for FY-2025, which is in line with its 5-year historical median of 18.3%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Kwality Pharmaceuticals Ltd?

Kwality Pharmaceuticals Ltd Return on Asset is 9.42%, which is in line with its 5-year historical median of 9.42%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Kwality Pharmaceuticals Ltd?

Kwality Pharmaceuticals Ltd Return on equity is 16.28% for FY-2025, which is in line with its 5-year historical median of 16.28%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Kwality Pharmaceuticals Ltd?

Kwality Pharmaceuticals Ltd Cash conversion cycle is 151 days, above its 5-year historical median of 141 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	0.87	0.87
ROE	16.28	16.28
ROCE	18.3	18.3
Cash Conversion Cycle	151 days	141 days

Q.6 Gross Profit margin of Kwality Pharmaceuticals Ltd?

Kwality Pharmaceuticals Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.6% for FY-2025, which is in line with its 5-year median of 19.6%, indicating stable margins.

Q.7 Operating Profit Margin of Kwality Pharmaceuticals Ltd?

Kwality Pharmaceuticals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.73% for FY-2025, which is in line with its 5-year median of 21.73% indicating stable margins.

Q.8 Net Profit Margin of Kwality Pharmaceuticals Ltd?

Kwality Pharmaceuticals Ltd Net Profit Margin is 10.78% for FY-2025, is above with its 5-year median of 7.81%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	19.6	19.6
Operating Profit Margin	21.73	21.73
Net Profit Margin	10.78	7.81

Q.9 Debt to Equity ratio of Kwality Pharmaceuticals Ltd?

Kwality Pharmaceuticals Ltd Debt-to-Equity ratio is 0.42, which is above with the industry average of 0.27, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Kwality Pharmaceuticals Ltd?

Kwality Pharmaceuticals Ltd Debt to cash flow from operations is 2.13, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kwality Pharmaceuticals Ltd?

Promoters hold 54.87% of the Kwality Pharmaceuticals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kwality Pharmaceuticals Ltd vs industry peers?

Kwality Pharmaceuticals Ltd revenue CAGR is 21.70%, 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	20.5	8.3
Gross Profit Growth	24.1	14.7
Operating Profit Growth	19.4	11.4
Net Profit Growth	66.7	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.87	0.81
ROE	16.28	9.49
ROCE	18.3	11.91
Cash Conversion Cycle (days)	151.07	85

Valuation & price assessment

Q.1 Stock return of Kwality Pharmaceuticals Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 74.12% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	74.1%	71.8%	143.7%

Q.3 Valuation ratios of Kwality Pharmaceuticals 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	30.42	25.66	31.09
Price to Book	5.6	3.29	2.85
Price to Sales	3.72	1.80	2.79
EV to EBITDA	16.65	10.19	15.87

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