Check Before You Invest : Lactose (India) Ltd

Snapshot

Q.1 Which industry/sub-sector does Lactose (India) Ltd belong to?

Lactose (India) Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Lactose (India) Ltd a good quality company?

Lactose (India) Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Lactose (India) Ltd undervalued or overvalued?

Lactose (India) Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Lactose (India) Ltd a good buy now?

Lactose (India) 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 Lactose (India) Ltd?

Lactose (India) Ltd revenue growth is 2.2% for FY-2025, which is below its 5-year CAGR of 23.79%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Lactose (India) Ltd?

Lactose (India) Ltd Return on capital employed is 13.01% for FY-2025, which is above its 5-year historical median of 10.21%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Lactose (India) Ltd?

Lactose (India) Ltd Return on Asset is 4.41%, which is above its 5-year historical median of 2.75%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Lactose (India) Ltd?

Lactose (India) Ltd Return on equity is 10.4% for FY-2025, which is above its 5-year historical median of 6.65%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Lactose (India) Ltd?

Lactose (India) Ltd Cash conversion cycle is 91 days, in line with its 5-year historical median of 91 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.99	0.69
ROE	10.4	6.65
ROCE	13.01	10.21
Cash Conversion Cycle	91 days	91 days

Q.6 Gross Profit margin of Lactose (India) Ltd?

Lactose (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.6% for FY-2025, which is in line with its 5-year median of 10.6%, indicating stable margins.

Q.7 Operating Profit Margin of Lactose (India) Ltd?

Lactose (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.49% for FY-2025, which is below its 5-year median of 17.29% indicating decreasing margins.

Q.8 Net Profit Margin of Lactose (India) Ltd?

Lactose (India) Ltd Net Profit Margin is 4.44% for FY-2025, is in line with with its 5-year median of 4.44%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	10.6	10.6
Operating Profit Margin	14.49	17.29
Net Profit Margin	4.44	4.44

Q.9 Debt to Equity ratio of Lactose (India) Ltd?

Lactose (India) Ltd Debt-to-Equity ratio is 1.08, 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 Lactose (India) Ltd?

Lactose (India) Ltd Debt to cash flow from operations is -192.2, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Lactose (India) Ltd?

Promoters hold 53.65% of the Lactose (India) Ltd, with 26.07% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Lactose (India) Ltd vs industry peers?

Lactose (India) Ltd revenue CAGR is 23.79%, 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	2.2	8.3
Gross Profit Growth	-20	14.7
Operating Profit Growth	-10.5	11.4
Net Profit Growth	-28.6	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.99	0.81
ROE	10.4	9.49
ROCE	13.01	11.91
Cash Conversion Cycle (days)	90.87	85

Valuation & price assessment

Q.1 Stock return of Lactose (India) Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 3.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	3.8%	31.1%	34.7%	-1.1%

Q.3 Valuation ratios of Lactose (India) Ltd vs historical?

The current P/E is similar 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	29.48	28.86	31.09
Price to Book	2.26	2.15	2.85
Price to Sales	0.98	1.27	2.79
EV to EBITDA	10.62	10.14	15.87

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