Indoco Remedies Limited (INDOCO) AI Stock Analysis

0 Followers

Indoco Remedies Limited

(NSE:INDOCO)

Select Model

Rating:47Neutral

Price Target:INR 211.00▼(-1.63% Downside)

Action:reiterated

Date:09/30/26

The score is held down primarily by weak financial performance—two years of net losses, higher leverage, and persistently negative free cash flow. Technicals are supportive with a clear uptrend and positive momentum, but valuation is a major headwind due to the extremely high P/E, only partially offset by the dividend yield.

Positive Factors

Diversified Pharmaceutical BusinessThe company operates across formulations, APIs, branded and generic medicines, multiple therapeutic segments, and contract manufacturing. This diversified operating model can spread dependence across products, markets, and customers, supporting business resilience over the next several quarters.

Negative Factors

Sustained Losses and Weak MarginsTwo consecutive years of net losses and an EBIT margin near 0.8% show that revenue is not currently translating into adequate operating returns. Persistent margin compression can weaken reinvestment capacity and make a durable earnings recovery dependent on successful cost and execution improvements.

Indoco Remedies Limited (INDOCO) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 22.86B
Dividend Yield: 0.09%
Average Volume (3M): 39.58K
Price to Earnings (P/E): 63.1
Beta (1Y): 0.99
Revenue Growth: 10.75%
EPS Growth: ―
Country: India
Employees: 6,000
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

Indoco Remedies Limited Business Overview & Revenue Model

Company Description

Indoco Remedies Limited, an Indian pharmaceutical company founded in Mumbai in 1945 (originally known as Indo Continental Trading Company), operates globally, manufacturing and distributing a broad spectrum of finished drug formulations and active ph...

Indoco Remedies Limited Financial Statement Overview

Summary

Despite ~9% revenue growth and a reasonable gross margin (~41%), profitability has deteriorated sharply with two consecutive years of net losses, very low EBIT margin (~0.8%), rising leverage (debt-to-equity ~1.16), and deeply negative free cash flow in recent years—indicating elevated execution and financial risk.

Income Statement

38Negative

Balance Sheet

42Neutral

Cash Flow

27Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	18.59B	18.45B	16.65B	17.88B	16.40B	15.04B
Gross Profit	10.14B	7.51B	6.59B	6.03B	11.01B	10.24B
EBITDA	2.69B	1.42B	1.06B	2.67B	2.87B	3.25B
Net Income	35.90M	-987.00M	-737.40M	984.60M	1.42B	1.55B
Balance Sheet
Total Assets	0	25.93B	24.30B	21.45B	16.58B	14.86B
Cash, Cash Equivalents and Short-Term Investments	329.90M	329.90M	153.17M	221.00M	119.25M	416.17M
Total Debt	0	10.90B	9.94B	6.72B	3.33B	2.57B
Total Liabilities	-9.32B	16.61B	14.12B	10.34B	6.30B	5.81B
Stockholders Equity	9.32B	9.39B	10.22B	11.10B	10.28B	9.05B
Cash Flow
Free Cash Flow	540.40M	-1.15B	-3.28B	-2.71B	-284.30M	485.05M
Operating Cash Flow	1.58B	324.30M	278.90M	1.55B	1.79B	1.74B
Investing Cash Flow	-595.60M	-1.03B	-3.44B	-4.38B	-2.08B	-1.21B
Financing Cash Flow	-976.70M	952.20M	3.09B	3.19B	228.10M	-443.72M

Indoco Remedies Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price214.50

Price Trends

50DMA240.62Negative

100DMA237.03Negative

200DMA222.00Negative

Market Momentum

MACD-8.26Positive

RSI38.85Neutral

STOCH29.48Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDOCO, the sentiment is Negative. The current price of 214.50 is below the 20-day moving average (MA) of 224.93, below the 50-day MA of 240.62, and below the 200-day MA of 222.00, indicating a bearish trend. The MACD of -8.26 indicates Positive momentum. The RSI at 38.85 is Neutral, neither overbought nor oversold. The STOCH value of 29.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INDOCO.

Indoco Remedies Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:INDOCO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:APLLTD	66Neutral	INR 178.32B	20.82	―	1.34%	19.68%	33.03%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:MOREPENLAB	55Neutral	INR 54.93B	28.31	―	0.21%	30.20%	91.17%
IN:UNICHEMLAB	51Neutral	INR 35.49B	11.39	―	―	9.43%	132.94%
IN:SOLARA	50Neutral	INR 31.02B	83.33	―	―	27.30%	456.80%
IN:INDOCO	47Neutral	INR 19.77B	63.15	―	0.09%	10.75%	―
IN:HIKAL	47Neutral	INR 27.42B	-552.25	―	0.27%	8.93%	-149.51%

* General Sector Average

Performance Comparison

IN:INDOCO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:INDOCO	Indoco Remedies Limited	214.50	-45.82	-17.60%
IN:APLLTD	Alembic Pharmaceuticals Limited	895.75	-12.38	-1.36%
IN:HIKAL	Hikal Limited	220.90	-11.14	-4.80%
IN:MOREPENLAB	Morepen Laboratories Limited	96.80	49.85	106.17%
IN:SOLARA	Solara Active Pharma Sciences Ltd.	643.30	78.30	13.86%
IN:UNICHEMLAB	Unichem Laboratories Limited	493.60	33.05	7.18%

Indoco Remedies Limited Corporate Events

Indoco Remedies Posts Q2 FY27 Earnings Call Recording for Investors

Oct 27, 2026

Indoco Remedies Limited has notified the stock exchanges that the audio recording of its earnings conference call discussing unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026, is now availa...

Indoco Remedies Sets October 27 Earnings Call on Q2 and Half-Year Results

Oct 21, 2026

Indoco Remedies Limited has scheduled an earnings conference call to discuss its unaudited financial results for the quarter and half year ended 30 September 2026, reaffirming its role as a transparent, exchange-listed Indian pharmaceutical manufactu...

Indoco Remedies Sells Mumbai Industrial Plot for Rs 64 Crore, Says Operations Unaffected

Aug 27, 2026

Indoco Remedies Limited has executed a deed of conveyance to sell a company-owned plot of land measuring about 2,876 square meters of built-up area in the Mahal Industrial Estate in Mumbai to Kalpataru Townships Private Limited for a total considerat...

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 30, 2026

Indoco Remedies Limited AI Stock Analysis