Unichem Laboratories Limited (UNICHEMLAB) AI Stock Analysis

• Market Cap: ₹33.12B
• Dividend Yield: N/A
• Average Volume (3M): 1.00K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.87
• Revenue Growth: 22.04%
• EPS Growth: N/A
• Country: IN
• Employees: 2,875
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -1.49
• Shares Outstanding: 70,405,754
• 10 Day Avg. Volume: 429
• 30 Day Avg. Volume: 1,005
• PEG Ratio: -0.12
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 2.32
• P/FCF Ratio: -33.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹475.00 ▲(2.25% Upside)

The overall stock score is primarily influenced by financial performance and technical analysis. Strong revenue growth and a stable balance sheet are offset by weak profitability and cash flow issues. The technical indicators suggest a bearish trend, while valuation is moderate. The absence of earnings call data and corporate events means these factors do not impact the score.

Unichem Laboratories Limited Business Overview & Revenue Model

Company Description

Unichem Laboratories Limited (UNICHEMLAB) is a prominent Indian pharmaceutical company that specializes in the development, manufacturing, and marketing of a wide range of pharmaceutical products. Established in 1944, the company operates across various sectors, including prescription pharmaceuticals, over-the-counter (OTC) products, and active pharmaceutical ingredients (APIs). UNICHEMLAB focuses on therapeutic areas such as cardiovascular, anti-diabetic, and anti-infective medicines, offering both branded and generic formulations to cater to diverse healthcare needs.

How the Company Makes Money

Unichem Laboratories generates revenue primarily through the sale of its pharmaceutical products, which includes both branded and generic medications. The company's revenue model is diversified across domestic and international markets, with significant income derived from its extensive portfolio of prescription drugs. Key revenue streams include sales from its formulations in various therapeutic segments, as well as from the production and sale of active pharmaceutical ingredients (APIs) to other pharmaceutical firms. Additionally, Unichem has established partnerships and collaborations with other companies for product development and distribution, further enhancing its market reach and revenue potential. The company also benefits from a growing demand for healthcare products and an increasing emphasis on quality medications in both local and global markets.

Unichem Laboratories Limited Financial Statement Overview

Summary

Unichem Laboratories shows strong revenue growth and improved gross margins. However, profitability is limited with a low net profit margin, and cash flow management poses challenges with negative operating cash flow. The balance sheet is stable with low leverage, but liquidity concerns need addressing.

Income Statement

Unichem Laboratories has demonstrated significant revenue growth, with Total Revenue increasing from $11.56 billion in 2020 to $21.11 billion in 2025, a strong upward trajectory. Gross Profit Margin improved to 59.08% in 2025, highlighting enhanced efficiency. However, the Net Profit Margin remains low at 6.51% in 2025, indicating limited profitability gains. The EBIT and EBITDA margins show volatility, suggesting operational challenges despite recent improvements.

Balance Sheet

The company maintains a healthy balance sheet with Stockholders' Equity rising to $24.51 billion in 2025, demonstrating robust equity support. The Debt-to-Equity Ratio is relatively low at 0.19, indicating low leverage and financial stability. However, the Equity Ratio has slightly decreased, reflecting a minor increase in liabilities relative to assets, warranting cautious monitoring.

Cash Flow

Cash flow performance is mixed, with Operating Cash Flow turning negative in 2025, showing cash management issues. Free Cash Flow remains negative, highlighting potential liquidity challenges. The Operating Cash Flow to Net Income Ratio reflects inconsistency in cash conversion efficiency. Attention is needed to improve cash flow stability and support growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.09B	21.11B	16.57B	13.25B	12.56B	12.05B
Gross Profit	12.33B	12.47B	3.17B	7.92B	8.07B	7.89B
EBITDA	2.87B	2.65B	742.36M	-456.07M	1.18B	1.41B
Net Income	1.31B	1.38B	-704.74M	-2.02B	330.62M	343.25M
Balance Sheet
Total Assets	0.00	35.69B	31.69B	31.93B	33.19B	31.26B
Cash, Cash Equivalents and Short-Term Investments	895.80M	895.80M	1.52B	1.89B	3.73B	3.14B
Total Debt	0.00	4.60B	2.48B	3.14B	3.49B	1.19B
Total Liabilities	-24.51B	11.19B	8.07B	7.58B	7.00B	5.69B
Stockholders Equity	24.51B	24.51B	23.62B	24.35B	26.18B	25.57B
Cash Flow
Free Cash Flow	0.00	-1.44B	-58.53M	-1.29B	-3.87B	-2.55B
Operating Cash Flow	0.00	-70.20M	166.94M	-850.91M	-2.60B	330.99M
Investing Cash Flow	0.00	-2.41B	504.04M	2.03B	1.00B	-735.58M
Financing Cash Flow	0.00	1.84B	-1.06B	-813.00M	1.91B	-1.21B

Unichem Laboratories Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 464.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UNICHEMLAB, the sentiment is Negative. The current price of 464.55 is below the 20-day moving average (MA) of 471.75, below the 50-day MA of 487.35, and below the 200-day MA of 591.60, indicating a bearish trend. The MACD of -5.20 indicates Negative momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 58.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:UNICHEMLAB.

Unichem Laboratories Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCAL	63 Neutral	₹46.59B	44.70	―	―	5.38%	―
AARTIDRUGS	62 Neutral	₹45.95B	24.34	―	0.20%	-0.03%	21.33%
SEQUENT	59 Neutral	₹55.15B	184.40	―	―	12.33%	439.46%
GUFICBIO	57 Neutral	₹32.77B	52.96	―	0.03%	2.37%	-30.78%
UNICHEMLAB	54 Neutral	₹33.12B	25.32	―	―	22.04%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Unichem Laboratories Limited Corporate Events

Unichem Laboratories Faces Demand Notice from NPPA for Alleged Overcharging

Unichem Laboratories Limited has received a Demand Notice from the National Pharmaceutical Pricing Authority (NPPA) regarding alleged overcharging for three drugs between July 2013 and November 2018. The NPPA has imposed a total penalty of ₹1,77,09,079 under the Drug Price Control Order 2013. Despite these allegations, Unichem Laboratories, which sold its domestic formulation business in December 2017, has assessed that there will be no material impact on its financials, operations, or other activities. The company is currently evaluating legal options to address the demand notices.

Unichem Laboratories Receives USFDA Inspection Report

Unichem Laboratories Limited announced that it has received the Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA) following an inspection of its Roha API facility. The inspection, conducted in June 2025, was classified as Voluntary Action Initiated (VAI) by the USFDA. This development indicates compliance with regulatory standards, potentially enhancing the company’s credibility and operational standing in the pharmaceutical industry.