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SMS Pharmaceuticals Limited
(SMSPHARMA)
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Rating:61Neutral
Price Target:
₹433.00
▲(13.71% Upside)
Action:Reiterated
Date:09/16/26
The score is primarily held back by weak cash conversion and consistently negative free cash flow despite improved profitability, which reduces confidence in earnings quality. Offsetting this, technicals are constructive with the stock trading above major moving averages and positive momentum. Valuation remains a headwind due to the high P/E and minimal dividend yield.
Positive Factors
Profitability recovery and growth
The return to solid profitability across FY2024–FY2026, alongside positive recent revenue growth, indicates meaningful recovery in operating performance. If sustained, stronger earnings can support reinvestment, improve resilience, and provide a firmer base for compounding through the next several quarters.
Negative Factors
Weak cash conversion
Operating cash flow remains modest relative to reported profits, while recurring negative free cash flow indicates that earnings are not consistently converting into deployable cash. Persistent working-capital or capital-spending demands could constrain self-funded growth and weaken financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery and growth
The return to solid profitability across FY2024–FY2026, alongside positive recent revenue growth, indicates meaningful recovery in operating performance. If sustained, stronger earnings can support reinvestment, improve resilience, and provide a firmer base for compounding through the next several quarters.
Read all positive factors
SMS Pharmaceuticals Limited (SMSPHARMA) vs. iShares MSCI India ETF (INDA)
Market Cap
₹43.48B
Dividend Yield0.1%
Average Volume (3M)29.58K
Price to Earnings (P/E)36.5
Beta (1Y)1.35
Revenue Growth10.25%
EPS Growth33.78%
CountryIN
Employees1,617
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)11.24
Shares Outstanding93,652,030
10 Day Avg. Volume74,866
30 Day Avg. Volume29,583
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)4.36
Price to Sales (P/S)3.87
P/FCF Ratio-37.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SMS Pharmaceuticals Limited Business Overview & Revenue Model
Company Description
SMS Pharmaceuticals Limited, an Indian company established in 1987 and based in Hyderabad, specializes in the production and distribution of active pharmaceutical ingredients (APIs) and pharmaceutical intermediates. The firm offers a wide array of...
How the Company Makes Money
SMS Pharmaceuticals Limited primarily makes money by manufacturing and selling active pharmaceutical ingredients (APIs) and pharmaceutical intermediates (bulk drugs) to customers such as pharmaceutical formulation companies and other API traders/m...
SMS Pharmaceuticals Limited Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
72
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.00B | 8.87B | 7.83B | 7.09B | 5.22B | 5.15B |
| Gross Profit | 2.39B | 1.75B | 1.45B | 2.11B | 1.29B | 1.81B |
| EBITDA | 1.80B | 1.71B | 1.45B | 1.18B | 593.89M | 1.20B |
| Net Income | 1.02B | 1.02B | 691.36M | 498.26M | -70.59M | 622.20M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 13.62B | 11.53B | 10.34B | 8.80B | 8.60B |
| Cash, Cash Equivalents and Short-Term Investments | 460.75M | 460.75M | 415.86M | 361.16M | 73.78M | 465.83M |
| Total Debt | 0.00 | 3.65B | 3.11B | 2.81B | 2.54B | 2.63B |
| Total Liabilities | -7.86B | 5.77B | 5.13B | 4.98B | 4.19B | 3.89B |
| Stockholders Equity | 7.86B | 7.86B | 6.40B | 5.36B | 4.61B | 4.70B |
Cash Flow | ||||||
| Free Cash Flow | 126.58M | -926.46M | -588.57M | -20.35M | -74.71M | 129.86M |
| Operating Cash Flow | 423.25M | 379.12M | 645.23M | 501.25M | 224.50M | 402.34M |
| Investing Cash Flow | -305.04M | -1.32B | -1.24B | -520.72M | -296.86M | -271.53M |
| Financing Cash Flow | 462.69M | 981.46M | 644.32M | 306.79M | -319.69M | -69.21M |
SMS Pharmaceuticals Limited Technical Analysis
Positive
380.80
Price Trends
381.35
Positive
386.49
Positive
367.68
Positive
Market Momentum
13.92
Negative
57.36
Neutral
69.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SMSPHARMA, the sentiment is Positive. The current price of 380.8 is above the 20-day moving average (MA) of 379.68, below the 50-day MA of 381.35, and above the 200-day MA of 367.68, indicating a bullish trend. The MACD of 13.92 indicates Negative momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 69.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SMSPHARMA.
SMS Pharmaceuticals Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ₹148.77B | 27.42 | ― | 0.29% | 19.59% | 47.58% | |
65 Neutral | ₹482.15B | 42.26 | ― | 0.69% | 17.57% | 46.53% | |
61 Neutral | ₹43.48B | 36.49 | ― | 0.10% | 10.25% | 33.78% | |
57 Neutral | ₹16.45B | 27.88 | ― | 0.07% | 40.45% | 174.03% | |
56 Neutral | ₹67.58B | 49.76 | ― | ― | 51.74% | 77.53% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹11.37B | 48.34 | ― | 1.20% | 11.96% | -28.48% |
* General Sector Average
IN:SMSPHARMA
SMS Pharmaceuticals Limited
410.85
125.89
44.18%
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IN:KOPRAN
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249.65
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42.87%
IN:MARKSANS
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77.89%
IN:NGLFINE
NGL Fine-Chem Ltd.
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80.72%
IN:SENORES
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1,420.75
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107.09%
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.