1. At a Glance
Sakar Healthcare is that underdog pharmaceutical company you ignored at ₹90 and now it’s yelling “I told you so” at ₹365. Riding high on EU approvals, oncology patents, and export tie-ups, this mini-capsule maker just punched its way into serious markets. But is it still medicine or now just meme stock?
2. Introduction with Hook
Imagine your neighborhood chemist suddenly getting invited to Davos. That’s Sakar.
This Ahmedabad-based company:
- Got two EU marketing authorizations in 2025
- Signed deals across Europe, South America, and the Nordics
- Claimed 292 registered products with 210 more on the way
Yet the ROE is a sleepy 6.4% and promoter holding is melting faster than paracetamol in hot water.
3. Business Model (WTF Do They Even Do?)
Basically, Sakar makes pharmaceuticals—but not your basic Crocin and Hajmola.
We’re talking:
- Oncology drugs (cancer treatments)
- Export-focused R&D (aka paperwork Olympics)
- Contract manufacturing for big boys like Dr. Reddy’s and Biocon
- Now entering regulated EU markets after receiving EU GMP approval
Think of them as the backstage crew that suddenly decided to grab the mic.
4. Financials Overview
| Metric | Q1 FY26 | YoY Growth |
|---|---|---|
| Sales | ₹52.74 Cr | +35% |
| EBITDA | ₹12.71 Cr | +41% |
| Net Profit | ₹4.67 Cr | +64% |
| EPS | ₹2.13 | Laughs in ₹10 FV |
- Operating Margin: 24.1%—healthy, unlike their customers.
- Net Profit Margin: Improving faster than your sleep cycle on melatonin.
- Interest Cost: Still small, but watch that Q4 FY25 blip.
5. Valuation
Fair Value Range: ₹280 – ₹400
Method 1: PE-Based
- EPS TTM: ₹9
- At 30x = ₹270
- At 45x = ₹405
Method 2: DCF-Adjusted for oncology ramp-up
- Conservative FV = ₹285
- Aggressive (post-EU revenue leap) = ₹400+
Conclusion:
You’re not buying numbers, you’re buying narrative—and oncology isn’t a bad story to bet on (unless you like math).
6. What’s Cooking – News, Triggers, Drama
Oh boy.
- June 2025: 2nd EU approval for colorectal cancer injectable
- April 2025: Licensing deals in Nordics, CEE, South America
- Jan 2024: Patent granted for Imatinib process
- July 2024: Tied up with Dr. Reddy’s, Biocon, Emcure
- Mar 2024: Oncology unit gets EU GMP clearance
Basically, if this was Netflix, the show would be called “Breaking Pharma.”
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity Capital | ₹22 Cr |
| Reserves | ₹264 Cr |
| Borrowings | ₹75 Cr |
| Total Assets | ₹415 Cr |
| Net Worth | ₹286 Cr |
Commentary:
- D/E ratio < 0.3 = Not allergic to debt, but not dependent either.
- Fixed Assets ₹309 Cr—oncology plant must have some serious beakers.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹33 Cr | -₹74 Cr | ₹41 Cr | ₹0 Cr |
| FY24 | ₹24 Cr | -₹52 Cr | ₹27 Cr | ₹0 Cr |
| FY25 | ₹34 Cr | -₹31 Cr | -₹3 Cr | ₹0 Cr |
- Cash from Ops is positive—but investing outflows show aggressive capex.
- Free cash flow? About as free as pharma conference passes.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 6.4% |
| ROCE | 9% |
| OPM | 27% |
| PE | 40x |
| D/E | 0.26x |
Interpretation:
The margins are seductive, but returns are still shy. PE is sky-high for a stock where promoters keep diluting.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹133 Cr | ₹33 Cr | ₹13 Cr |
| FY24 | ₹153 Cr | ₹38 Cr | ₹12 Cr |
| FY25 | ₹178 Cr | ₹50 Cr | ₹18 Cr |
Growth is happening, but don’t expect a hockey stick. It’s more like a polite incline.
11. Peer Comparison
| Company | Rev (Cr) | PAT (Cr) | P/E | ROE |
|---|---|---|---|---|
| Sun Pharma | 52,578 | 11,454 | 35x | 16.9% |
| Cipla | 27,548 | 5,142 | 24x | 17.8% |
| Zydus | 23,242 | 4,644 | 21x | 21.2% |
| Sakar | 189 | 20 | 40x | 6.4% |
Summary:
Tiny fish in a shark tank. But Sakar isn’t trying to be Cipla—it’s trying to own a niche.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 52.86% (down from 62%) |
| FIIs | 13.41% |
| DIIs | 11.25% |
| Public | 22.48% |
| No. of Shareholders | 8,115 |
- Promoter dilution: 10%+ over 3 years
- Recent warrant conversions & preferential allotments—clearly raising funds for capex.
- No dividends ever. Must be allergic to payouts.
13. EduInvesting Verdict™
Sakar is trying to punch above its weight class—and sometimes, it actually connects. The EU approvals, patent grants, and export deals make it a company to watch. But weak returns, high valuation, and constant dilution mean you’re buying a potential, not a powerhouse.
A gutsy mid-cap gamble. But don’t forget your calculator with that conviction.
Metadata:
Written by EduInvesting Team | 25 July 2025
Tags: Sakar Healthcare, Oncology, EU Approvals, Pharma Exports, EduInvesting Premium
