Natural Capsules Limited (NATCAPSUQ) AI Stock Analysis

Natural Capsules Limited

(NSE:NATCAPSUQ)

Select Model

Rating:40Underperform

Price Target:INR 131.00▼(-3.68% 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

Specialized Capsule BusinessThe company operates in a specialized pharmaceutical and healthcare-supplies niche, supplying empty hard capsules used in medicines and supplements. This focused business model gives it a defined role in the dosage-form value chain and provides exposure to recurring demand from capsule-based products.

Negative Factors

Profitability CollapseThe shift from near break-even performance to a sizable net loss shows that revenue growth is currently accompanied by substantial earnings pressure. Negative operating and EBITDA margins reduce internal funding capacity and raise concern that cost or pricing pressures could persist over the next several quarters.

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

Market Cap: INR 1.45B
Dividend Yield: ―
Average Volume (3M): 4,688
Price to Earnings (P/E): -6.2
Beta (1Y): 0.34
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 SentimentNegative

Last Price136.00

Price Trends

50DMA171.66Negative

100DMA161.13Negative

200DMA160.09Negative

Market Momentum

MACD-8.58Positive

RSI27.84Positive

STOCH6.96Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NATCAPSUQ, the sentiment is Negative. The current price of 136.00 is below the 20-day moving average (MA) of 154.51, below the 50-day MA of 171.66, and below the 200-day MA of 160.09, indicating a bearish trend. The MACD of -8.58 indicates Positive momentum. The RSI at 27.84 is Positive, neither overbought nor oversold. The STOCH value of 6.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 1.41B	9.73	―	―	9.40%	34.12%
IN:BROOKS	61Neutral	INR 1.79B	13.49	―	―	-7.71%	927.75%
IN:BALPHARMA	58Neutral	INR 1.29B	18.03	―	1.47%	13.51%	-14.80%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ALPA	54Neutral	INR 1.05B	29.99	―	―	0.46%	-83.31%
IN:NECLIFE	44Neutral	INR 2.00B	-0.90	―	―	-99.53%	-41.93%
IN:NATCAPSUQ	40Underperform	INR 1.42B	-6.24	―	―	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	136.00	-77.00	-36.15%
IN:ALPA	Alpa Laboratories Limited	49.80	-40.82	-45.05%
IN:BALPHARMA	Bal Pharma Limited	81.20	0.52	0.64%
IN:BROOKS	Brooks Laboratories Limited	60.85	-50.45	-45.33%
IN:NECLIFE	Nectar Lifesciences Ltd.	10.29	-4.61	-30.94%
IN:PAR	Par Drugs and Chemicals Limited	114.67	12.95	12.73%

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