Novartis India Limited (NOVARTIND) AI Stock Analysis

Novartis India Limited

(NSE:NOVARTIND)

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Rating:78Outperform

Price Target:INR 1,931.00▲(14.00% Upside)

Action:initiatedcoverage

Date:09/22/26

The score is driven primarily by strong financial strength (especially a very low-debt balance sheet) and a clear positive price trend with supportive momentum. These strengths are tempered by a high valuation (P/E 50.56) and a history of cash flow and revenue variability.

Positive Factors

Very low leverageAn almost debt-free balance sheet limits interest and refinancing pressure, giving Novartis India greater resilience if operating conditions weaken. The substantial equity base also preserves flexibility to support commercialization, sustain investment, and return capital without depending heavily on lenders.

Negative Factors

Uneven revenue growthThe pattern of declines followed by recovery shows that top-line expansion has not been consistently predictable. Uneven revenue growth can make planning and resource allocation less reliable, and it may limit confidence that the current earnings trajectory will continue smoothly.

Novartis India Limited (NOVARTIND) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 41.79B
Dividend Yield: 1.48%
Average Volume (3M): 9,516
Price to Earnings (P/E): 42.7
Beta (1Y): -0.17
Revenue Growth: 5.42%
EPS Growth: -4.87%
Country: India
Employees: 59
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

Novartis India Limited Business Overview & Revenue Model

Company Description

Evonile Pharma Limited, an affiliate of Novartis AG, operates as a healthcare enterprise primarily within India. The company's diverse portfolio encompasses a range of therapeutic solutions. These include bone and pain management treatments sold unde...

How the Company Makes Money

Novartis India Limited primarily makes money by commercializing pharmaceutical products in India. Its core revenue stream is the sale of branded prescription medicines to customers such as hospitals, pharmacies, distributors, and other healthcare cha...

Novartis India Limited Financial Statement Overview

Summary

Strong overall fundamentals supported by a very conservative balance sheet (low leverage; Balance Sheet Score 92) and solid recent profitability (Income Statement Score 78). Cash generation is good but less consistent over time (Cash Flow Score 70), with noted historical volatility in operating cash flow and free cash flow growth.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.71B	3.54B	3.98B	3.35B	3.79B	3.88B
Gross Profit	1.48B	1.33B	1.53B	1.32B	1.77B	2.06B
EBITDA	1.11B	941.00M	1.33B	652.60M	1.23B	106.60M
Net Income	977.70M	931.80M	1.01B	851.90M	1.03B	-37.20M
Balance Sheet
Total Assets	0	9.78B	9.48B	9.25B	9.83B	9.58B
Cash, Cash Equivalents and Short-Term Investments	6.68B	6.68B	6.37B	5.85B	5.70B	5.16B
Total Debt	0	32.10M	50.60M	69.70M	215.10M	240.10M
Total Liabilities	-8.18B	1.60B	1.63B	1.80B	2.07B	2.66B
Stockholders Equity	8.18B	8.18B	7.85B	7.45B	7.76B	6.92B
Cash Flow
Free Cash Flow	119.80M	843.60M	745.70M	1.48B	444.90M	381.70M
Operating Cash Flow	119.80M	847.00M	745.70M	1.13B	448.00M	386.70M
Investing Cash Flow	257.00M	-203.40M	-33.10M	331.30M	-1.53B	870.40M
Financing Cash Flow	-629.50M	-639.30M	-641.50M	-1.21B	-304.80M	-356.30M

Novartis India Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price1693.85

Price Trends

50DMA1849.17Negative

100DMA1684.34Positive

200DMA1340.49Positive

Market Momentum

MACD-39.53Positive

RSI38.75Neutral

STOCH40.15Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NOVARTIND, the sentiment is Negative. The current price of 1693.85 is below the 20-day moving average (MA) of 1901.00, below the 50-day MA of 1849.17, and above the 200-day MA of 1340.49, indicating a neutral trend. The MACD of -39.53 indicates Positive momentum. The RSI at 38.75 is Neutral, neither overbought nor oversold. The STOCH value of 40.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NOVARTIND.

Novartis India Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:NOVARTIND against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:CIPLA	79Outperform	INR 1.11T	38.44	―	2.10%	-0.74%	-46.77%
IN:GLENMARK	79Outperform	INR 651.37B	36.08	―	0.22%	32.94%	138.54%
IN:NOVARTIND	78Outperform	INR 41.82B	42.73	―	1.48%	5.42%	-4.87%
IN:LUPIN	77Outperform	INR 918.70B	16.62	―	0.90%	28.19%	49.25%
IN:DRREDDY	63Neutral	INR 1.13T	40.24	―	0.59%	-3.60%	-52.23%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ASTRAZEN	49Neutral	INR 159.18B	93.80	―	0.57%	31.10%	-7.49%

* General Sector Average

Performance Comparison

IN:NOVARTIND and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:NOVARTIND	Novartis India Limited	1693.85	820.95	94.05%
IN:ASTRAZEN	AstraZeneca Pharma India Limited	6367.35	-3406.26	-34.85%
IN:CIPLA	Cipla Ltd	1380.00	-117.54	-7.85%
IN:DRREDDY	Dr. Reddy's Laboratories Ltd.	1350.20	161.29	13.57%
IN:GLENMARK	Glenmark Pharmaceuticals Limited	2308.00	411.88	21.72%
IN:LUPIN	Lupin Limited	2009.00	37.45	1.90%

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 22, 2026

Novartis India Limited AI Stock Analysis