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Check Before You Invest : Novelix Pharmaceuticals Ltd

BSE: 536565 NSE: ISIN: INE314I01036
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Novelix Pharmaceuticals Ltd belong to?
Novelix Pharmaceuticals Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Novelix Pharmaceuticals Ltd a good quality company?
Novelix Pharmaceuticals 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 Novelix Pharmaceuticals Ltd undervalued or overvalued?
Novelix Pharmaceuticals 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 5-year
Historic Median
Price to Earnings 62.99 -
Price to Book 2.34 1.19
Price to Sales 0.9 4.62
EV to EBITDA 46.18 -1.88
Q.4 Is Novelix Pharmaceuticals Ltd a good buy now?
Novelix 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

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 Novelix Pharmaceuticals Ltd?
Novelix Pharmaceuticals Ltd revenue growth is 628% for FY-2025, which is above its 5-year CAGR of 97.2%, indicating faster growth.

Q.2 Gross Profit margin of Novelix Pharmaceuticals Ltd?
Novelix Pharmaceuticals Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.5% for FY-2025, which is above its 5-year median of -0.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Novelix Pharmaceuticals Ltd?
Novelix Pharmaceuticals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.51% for FY-2025, which is above its 5-year median of -36.86% indicating increasing margins.

Q.4 Net Profit Margin of Novelix Pharmaceuticals Ltd?
Novelix Pharmaceuticals Ltd Net Profit Margin is 0.28% for FY-2025, is above its 5-year median of -4.27%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 0.5 -0.2
Operating Profit Margin (%) 0.51 -36.86
Net Profit Margin (%) 0.28 -4.27

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Novelix Pharmaceuticals Ltd?
Novelix Pharmaceuticals Ltd Return on Asset is 0.49%, which is above its 5-year historical median of -0.83%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Novelix Pharmaceuticals Ltd?
Novelix Pharmaceuticals Ltd Return on capital employed is 1% for FY-2025, which is above its 5-year historical median of -0.81%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Novelix Pharmaceuticals Ltd?
Novelix Pharmaceuticals Ltd Return on equity is 0.68% for FY-2025, which is above its 5-year historical median of -0.83%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Novelix Pharmaceuticals Ltd?
Novelix Pharmaceuticals Ltd Cash conversion cycle is 62 days, below its 5-year historical median of 94 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 (x) 1.78 0.2
ROE (%) 0.68 -0.83
ROCE (%) 1 -0.81
Cash Conversion Cycle 62 days 94 days

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

Q.9 Debt to Equity ratio of Novelix Pharmaceuticals Ltd?
Novelix Pharmaceuticals Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Novelix Pharmaceuticals Ltd?
Novelix Pharmaceuticals Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Novelix Pharmaceuticals Ltd?

Q.1 Promoter shareholding and pledge status of Novelix Pharmaceuticals Ltd?
Promoters hold 49.43% of the Novelix Pharmaceuticals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Novelix Pharmaceuticals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Novelix Pharmaceuticals Ltd vs industry peers?
Novelix Pharmaceuticals Ltd revenue CAGR is 97.20%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 628 -
Gross Profit Growth (%) 0 17.9
Operating Profit Growth (%) 0 16.4
Net Profit Growth (%) 0 17.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.78 0.52
ROE (%) 0.68 2.05
ROCE (%) 1 3.6
Cash Conversion Cycle (days) 62.48 46

Valuation & price assessment

Q.1 Stock return of Novelix Pharmaceuticals Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 22.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
22.3% 38.5% 72.5% 103.3%
Q.2 Valuation ratios of Novelix Pharmaceuticals Ltd vs historical?
The current P/E ratio of 62.99 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.
Q.3 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 62.99 - 33.62
Price to Book 2.34 1.19 1.57
Price to Sales 0.9 4.62 2.21
EV to EBITDA 46.18 -1.88 14.09

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