Natural Capsules Limited (NATCAPSUQ) AI Stock Analysis

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Natural Capsules Limited

(NSE:NATCAPSUQ)

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Rating:40Underperform

Price Target:INR 146.00▼(-6.47% Downside)

Action:downgraded

Date:10/29/26

Weak financial performance from profitability and cash flow deterioration is the largest negative factor, followed by bearish technical signals from price action below moving averages and negative MACD, plus poor valuation due to negative P/E.

Positive Factors

Revenue GrowthStrong FY2026 revenue growth shows that the company expanded sales of its capsule-shell products despite the challenging profitability outcome. Continued top-line expansion can provide a broader base for operating leverage if management restores margins and controls the costs associated with growth.

Negative Factors

Profitability CollapseThe swing from near break-even performance to a sizable net loss shows that revenue growth is not currently translating into earnings. Compressed gross margins and negative operating and EBITDA margins indicate meaningful cost or mix pressure that could remain a durable drag until corrected.

Natural Capsules Limited (NATCAPSUQ) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.58B
Dividend Yield: ―
Average Volume (3M): 4,149
Price to Earnings (P/E): -6.8
Beta (1Y): 0.35
Revenue Growth: 8.84%
EPS Growth: -285.42%
Country: India
Employees: 620
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

Natural Capsules Limited Business Overview & Revenue Model

Company Description

Natural Capsules Ltd. specializes in the production and global distribution of hard gelatin and cellulose capsule shells, catering to markets in India and abroad. The company offers a comprehensive array of capsule types, including those guaranteed f...

Natural Capsules Limited Financial Statement Overview

Summary

Revenue grew to 1.87 billion but gross margins fell sharply to 25%, resulting in a 170 million net loss; operating cash flow dropped to 8.5 million while balance sheet shows moderate leverage at 0.52 debt-to-equity.

Income Statement

25Negative

Balance Sheet

55Neutral

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024
Income Statement
Total Revenue	857.19M	1.87B	1.64B
Gross Profit	350.75M	467.09M	757.25M
EBITDA	39.63M	1.72M	182.22M
Net Income	-64.68M	-170.74M	6.17M
Balance Sheet
Total Assets	4.20B	4.24B	4.19B
Cash, Cash Equivalents and Short-Term Investments	53.75M	48.23M	51.98M
Total Debt	1.12B	1.15B	1.05B
Total Liabilities	1.75B	1.89B	1.62B
Stockholders Equity	2.27B	2.22B	2.33B
Cash Flow
Free Cash Flow	-115.70M	-106.77M	-178.78M
Operating Cash Flow	201.52M	8.53M	267.52M
Investing Cash Flow	-313.49M	-115.30M	-444.85M
Financing Cash Flow	25.08M	102.16M	161.67M

Natural Capsules Limited Technical Analysis

Technical Analysis SentimentNeutral

Last Price156.10

Price Trends

50DMA165.58Negative

100DMA160.01Negative

200DMA158.40Negative

Market Momentum

MACD-3.56Negative

RSI55.71Neutral

STOCH90.77Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NATCAPSUQ, the sentiment is Neutral. The current price of 156.10 is above the 20-day moving average (MA) of 146.50, below the 50-day MA of 165.58, and below the 200-day MA of 158.40, indicating a neutral trend. The MACD of -3.56 indicates Negative momentum. The RSI at 55.71 is Neutral, neither overbought nor oversold. The STOCH value of 90.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:NATCAPSUQ.

Natural Capsules Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:NATCAPSUQ against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PAR	73Outperform	INR 1.46B	11.27	―	―	9.40%	34.12%
IN:BROOKS	61Neutral	INR 1.94B	2.59	―	―	-14.88%	431.30%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ALPA	54Neutral	INR 1.17B	33.32	―	―	0.46%	-83.31%
IN:BALPHARMA	45Neutral	INR 1.40B	20.03	―	1.33%	18.79%	-2.58%
IN:NECLIFE	44Neutral	INR 2.04B	-0.94	―	―	-99.53%	-41.93%
IN:NATCAPSUQ	40Underperform	INR 1.60B	-6.83	―	―	8.84%	-285.42%

* General Sector Average

Performance Comparison

IN:NATCAPSUQ and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:NATCAPSUQ	Natural Capsules Limited	156.10	-37.30	-19.29%
IN:ALPA	Alpa Laboratories Limited	55.61	-24.36	-30.46%
IN:BALPHARMA	Bal Pharma Limited	90.10	11.30	14.34%
IN:BROOKS	Brooks Laboratories Limited	64.23	-38.62	-37.55%
IN:NECLIFE	Nectar Lifesciences Ltd.	10.73	-3.91	-26.71%
IN:PAR	Par Drugs and Chemicals Limited	119.00	24.89	26.45%

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: Oct 29, 2026

Natural Capsules Limited AI Stock Analysis