Bal Pharma Limited (BALPHARMA) AI Stock Analysis

Bal Pharma Limited

(NSE:BALPHARMA)

Select Model

Rating:49Neutral

Price Target:INR 81.00▼(-0.25% Downside)

Action:reiterated

Date:09/10/26

The score is held back primarily by weak financial quality—especially volatile cash flows with repeated negative free cash flow and a highly leveraged balance sheet. Technicals are supportive due to a strong uptrend, but very overbought momentum signals increase near-term downside risk. Valuation is middling (P/E ~25) with only a modest dividend yield, providing limited offset to the financial risks.

Positive Factors

Long-term revenue growthThe company has expanded revenue over the longer term, indicating continued demand for its pharmaceutical portfolio. Although the pace has been inconsistent, this underlying growth provides a base for scale, broader market participation, and potential operating improvement over the next several quarters.

Negative Factors

High and rising leverageHigh and rising leverage leaves Bal Pharma carrying substantial financial obligations relative to shareholder capital. This can constrain flexibility, increase the importance of steady earnings and cash generation, and make funding growth or absorbing weaker operating periods more difficult.

Bal Pharma Limited (BALPHARMA) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.51B
Dividend Yield: 1.47%
Average Volume (3M): 5,246
Price to Earnings (P/E): 18.0
Beta (1Y): 0.61
Revenue Growth: 13.51%
EPS Growth: -14.80%
Country: India
Employees: 939
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

Bal Pharma Limited Business Overview & Revenue Model

Company Description

Bal Pharma Limited, together with its subsidiaries, manufactures and markets pharmaceutical formulations and active pharmaceutical ingredients (APIs) in India and internationally. The company offers prescription drugs, generics, OTC products, intrave...

How the Company Makes Money

Bal Pharma Limited makes money primarily by selling pharmaceutical products, with revenue generally coming from: (1) sales of finished dosage formulations (branded or generic medicines sold through distribution channels to hospitals, pharmacies, and...

Bal Pharma Limited Financial Statement Overview

Summary

Income statement is moderate (revenue growth over 2021–2026 but inconsistent; thin and softening earnings), while the balance sheet is pressured by high leverage (~1.8x–2.1x debt-to-equity with rising debt). Cash flow is the biggest weakness: volatile operating cash flow and repeated negative free cash flow in 2023 and 2025–2026 raise quality-of-earnings and funding-risk concerns.

Income Statement

56Neutral

Balance Sheet

42Neutral

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.34B	3.12B	3.03B	3.39B	3.04B	2.81B
Gross Profit	973.08M	761.52M	730.18M	770.20M	1.25B	1.11B
EBITDA	346.70M	338.31M	317.63M	320.23M	245.00M	239.71M
Net Income	72.06M	62.84M	72.15M	73.92M	25.72M	56.12M
Balance Sheet
Total Assets	0	3.76B	3.36B	3.20B	3.13B	2.61B
Cash, Cash Equivalents and Short-Term Investments	92.92M	92.92M	105.19M	199.29M	74.63M	60.84M
Total Debt	0	1.60B	1.50B	1.42B	1.33B	1.07B
Total Liabilities	-822.52M	2.93B	2.58B	2.50B	2.49B	2.02B
Stockholders Equity	822.52M	822.27M	774.16M	692.94M	637.89M	586.27M
Cash Flow
Free Cash Flow	0	-40.83M	-145.55M	118.26M	-164.89M	192.39M
Operating Cash Flow	0	144.72M	42.32M	228.06M	-18.43M	277.08M
Investing Cash Flow	0	-215.41M	-156.53M	-188.91M	-221.82M	-94.85M
Financing Cash Flow	0	72.26M	90.12M	-12.06M	244.00M	-181.34M

Bal Pharma Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price81.20

Price Trends

50DMA94.65Negative

100DMA89.66Negative

200DMA81.82Negative

Market Momentum

MACD-4.57Positive

RSI36.29Neutral

STOCH27.59Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BALPHARMA, the sentiment is Negative. The current price of 81.20 is below the 20-day moving average (MA) of 92.39, below the 50-day MA of 94.65, and below the 200-day MA of 81.82, indicating a bearish trend. The MACD of -4.57 indicates Positive momentum. The RSI at 36.29 is Neutral, neither overbought nor oversold. The STOCH value of 27.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BALPHARMA.

Bal Pharma Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:BALPHARMA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:BROOKS	82Outperform	INR 1.79B	13.49	―	―	-7.71%	927.75%
IN:PAR	73Outperform	INR 1.41B	9.73	―	―	9.40%	34.12%
IN:VAISHALI	62Neutral	INR 866.70M	18.83	―	―	3.08%	972.22%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:AAREYDRUGS	52Neutral	INR 2.98B	72.28	―	―	-7.69%	-0.35%
IN:BALPHARMA	49Neutral	INR 1.29B	18.03	―	1.47%	13.51%	-14.80%
IN:ALPA	47Neutral	INR 1.05B	29.99	―	―	0.46%	-83.31%

* General Sector Average

Performance Comparison

IN:BALPHARMA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:BALPHARMA	Bal Pharma Limited	81.20	0.52	0.64%
IN:AAREYDRUGS	Aarey Drugs & Pharmaceuticals Ltd.	105.25	9.00	9.35%
IN:ALPA	Alpa Laboratories Limited	49.80	-40.82	-45.05%
IN:BROOKS	Brooks Laboratories Limited	60.85	-50.45	-45.33%
IN:PAR	Par Drugs and Chemicals Limited	114.67	12.95	12.73%
IN:VAISHALI	Vaishali Pharma Ltd.	6.42	-3.58	-35.80%

Bal Pharma Limited Corporate Events

Bal Pharma Closes Trading Window Ahead of Q2 FY27 Results

Sep 25, 2026

Bal Pharma Limited operates in the pharmaceutical sector, focusing on the development, manufacturing and marketing of pharmaceutical formulations and active pharmaceutical ingredients. The company serves domestic and international markets and its sha...

Bal Pharma holds 39th AGM via video conferencing in line with MCA norms

Sep 24, 2026

Bal Pharma Limited reported that its 39th Annual General Meeting was held on September 24, 2026, via video conferencing and other audio-visual means in line with MCA circulars and Companies Act provisions. All items of business set out in the AGM not...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 10, 2026

Bal Pharma Limited AI Stock Analysis