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Check Before You Invest : Windlas Biotech Ltd

BSE: 543329 NSE: WINDLAS ISIN: INE0H5O01029
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Windlas Biotech Ltd belong to?
Windlas Biotech Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Windlas Biotech Ltd a good quality company?
Windlas Biotech Ltd is a good quality company, based on a consistently good 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 Windlas Biotech Ltd undervalued or overvalued?
Windlas Biotech 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 26.7 24.38
Price to Book 3.45 2.39
Price to Sales 1.96 1.80
EV to EBITDA 14.71 12.76
Q.4 Is Windlas Biotech Ltd a good buy now?
Windlas Biotech 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

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 Windlas Biotech Ltd?
Windlas Biotech Ltd revenue growth is 19% for FY-2026, which is above its 5-year CAGR of 16.15%, indicating faster growth.

Q.2 Gross Profit margin of Windlas Biotech Ltd?
Windlas Biotech Ltd Gross profit margin which is the profit after deduction of direct costs, is 13% for FY-2026, which is in line with its 5-year median of 13.5%, indicating stable margins.

Q.3 Operating Profit Margin of Windlas Biotech Ltd?
Windlas Biotech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.58% for FY-2026, which is in line with its 5-year median of 11.74% indicating stable margins.

Q.4 Net Profit Margin of Windlas Biotech Ltd?
Windlas Biotech Ltd Net Profit Margin is 7.35% for FY-2026, is below its 5-year median of 8.28%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 13 13.5
Operating Profit Margin (%) 11.58 11.74
Net Profit Margin (%) 7.35 8.28

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Windlas Biotech Ltd?
Windlas Biotech Ltd Return on Asset is 7.97%, which is below its 5-year historical median of 8.75%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Windlas Biotech Ltd?
Windlas Biotech Ltd Return on capital employed is 16.05% for FY-2026, which is in line with its 5-year historical median of 16.05%. 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 Windlas Biotech Ltd?
Windlas Biotech Ltd Return on equity is 12.51% for FY-2026, which is in line with its 5-year historical median of 12.82%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Windlas Biotech Ltd?
Windlas Biotech Ltd Cash conversion cycle is 14 days, below its 5-year historical median of 41 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) 1.08 1.09
ROE (%) 12.51 12.82
ROCE (%) 16.05 16.05
Cash Conversion Cycle 14 days 41 days

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

Q.9 Debt to Equity ratio of Windlas Biotech Ltd?
Windlas Biotech Ltd Debt-to-Equity ratio is 0.05, which is lower the industry average of 0.14, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Windlas Biotech Ltd?
Windlas Biotech Ltd Debt to cash flow from operations is 0.28, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Windlas Biotech Ltd?

Q.1 Promoter shareholding and pledge status of Windlas Biotech Ltd?
Promoters hold 63.31% of the Windlas Biotech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Windlas Biotech Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Windlas Biotech Ltd vs industry peers?
Windlas Biotech Ltd revenue CAGR is 16.15%, compared to the industry median CAGR of 5.34%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 19 5.3
Gross Profit Growth (%) 10.3 11.8
Operating Profit Growth (%) 11.7 10.8
Net Profit Growth (%) 8.2 12.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.08 0.78
ROE (%) 12.51 8.58
ROCE (%) 16.05 10.85
Cash Conversion Cycle (days) 14.08 76

Valuation & price assessment

Q.1 Stock return of Windlas Biotech Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 37.91% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 37.9% -12.7%
Q.2 Valuation ratios of Windlas Biotech Ltd vs historical?
The current P/E ratio of 26.7 is higher than its historical median of 24.38, 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 26.7 24.38 31.09
Price to Book 3.45 2.39 2.85
Price to Sales 1.96 1.80 2.82
EV to EBITDA 14.71 12.76 15.99

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