1. At a Glance
A pharma stock that grew EPS 13x in 10 years, posted a Rs. 183 Cr PAT in FY25 (with an 83 Cr land sale bonus), and still managed to have a fire incident and a dividend party — all in the same fiscal year. Buckle up.
2. Introduction with Hook
If RPG Life Sciences were a movie, it’d be a Christopher Nolan thriller — plot twists, explosions (literally), big money, and a new leading man every few seasons. From being a silent smallcap to suddenly flexing a 25% ROE, this RPG is less Role Playing Game and more Real Pharma Growth.
And let’s not forget — ₹183 Cr PAT in FY25 vs ₹88 Cr last year. Boom.
3. Business Model (WTF Do They Even Do?)
They do boring pharma stuff but wear an RPG cape while doing it. Here’s the rundown:
- Formulations (Finished Dosage Forms) — tablets, capsules, the works. Branded and generics.
- APIs — the raw materials that make your meds tick.
- Markets — Domestic, EU, and ROW (Rest Of World, not Rest Of Worthless).
- IP back-end? Nope. It’s mostly execution-led scale, not patented wizardry.
Basically, they manufacture your pills while slipping in an EBITDA margin of 24%. Not bad for a “formulations-and-API” combo pack.
4. Financials Overview
“Margins tighter than lab gloves. But profits? Dripping with steroids.”
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹513 Cr | ₹582 Cr | ₹653 Cr |
| EBITDA | ₹104 Cr | ₹129 Cr | ₹161 Cr |
| Net Profit | ₹68 Cr | ₹88 Cr | ₹183 Cr |
| OPM | 20% | 22% | 25% |
| EPS | ₹40.9 | ₹53.0 | ₹110.8 |
FY25 includes ₹83 Cr in one-time land gain. Remove that, and you still get ₹100 Cr+ clean PAT.
5. Valuation
If you think 40x earnings is cheap, you probably also buy Starbucks coffee inside hospitals.
- P/E (Trailing): 39.8x
- P/B: 7.77x
Fair Value Range:
- Without land gain: ~₹1,700–₹1,900
- With land gain priced in: ~₹2,100–₹2,300
Anything above ₹2,500? That’s hopium + quarterly caffeine.
6. What’s Cooking – News, Triggers, Drama
- Rs. 83 Cr Land Sale — got ₹183 Cr PAT with real estate swag
- New MD Appointed — Ashok Nair enters, stage left
- Fire at Navi Mumbai plant — but losses were insured (Rs. 16.33 Cr)
- Rs. 24 Dividend — Rs. 20 regular + Rs. 4 special
- Sunpound Solar stake — RPG going solar? Wait, what?
More plot twists than an Ekta Kapoor episode.
7. Balance Sheet
“Debt: Gone. Assets: Piling. Reserves: Buff.”
| Item | FY25 |
|---|---|
| Equity Capital | ₹13 Cr |
| Reserves | ₹517 Cr |
| Total Borrowings | ₹0 Cr |
| Total Assets | ₹658 Cr |
| Investments | ₹127 Cr |
Zero debt. Positive cash flow. Investing like an uncle at a property fair.
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹91 Cr | -₹106 Cr | -₹17 Cr | -₹32 Cr |
| FY24 | ₹94 Cr | -₹79 Cr | -₹20 Cr | -₹5 Cr |
| FY25 | ₹78 Cr | -₹42 Cr | -₹27 Cr | ₹9 Cr |
Commentary: Cash is flowing in from ops, leaking out via investments. Classic reinvestment story. Nothing sus, just expansion feels.
9. Ratios – Sexy or Stressy?
“ROCE so hot, even Zydus is side-eyeing.”
| Ratio | Value |
|---|---|
| ROCE | 33% |
| ROE | 26% |
| PAT Margin | 28% (FY25) |
| D/E | 0.00 |
| P/E | 39.8x |
Verdict: Financially, this company’s doing yoga. Flexible, balanced, and zero tension.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹513 Cr | ₹104 Cr | ₹68 Cr |
| FY24 | ₹582 Cr | ₹129 Cr | ₹88 Cr |
| FY25 | ₹653 Cr | ₹161 Cr | ₹183 Cr* |
*Includes ₹83 Cr land profit. Even if you subtract that, it’s still up by 13% YoY.
“PAT grew 100%+ on steroids. But remove the land? Then it just worked out regularly.”
11. Peer Comparison
“Looks like the leanest, fittest kid at a pharma gym.”
| Company | Rev (Cr) | PAT (Cr) | P/E | ROE |
|---|---|---|---|---|
| RPG LifeSc. | ₹657 | ₹183 | 39.8 | 25.5% |
| Zydus | ₹23,241 | ₹4,643 | 21.2 | 21.2% |
| Torrent | ₹11,516 | ₹1,916 | 63.7 | 26.5% |
| Cipla | ₹27,811 | ₹5,378 | 23.0 | 17.7% |
| Divi’s Lab | ₹9,360 | ₹2,190 | 80.2 | 15.4% |
RPG: High on returns, low on size. Niche player, not blockbuster.
12. Miscellaneous – Shareholding, Promoters
| Shareholding | Jun 2025 |
|---|---|
| Promoters | 72.95% |
| FIIs | 1.35% |
| DIIs | 6.49% |
| Public | 19.22% |
FII + DII steadily rising. Retail slowly getting diluted — and probably reading this article to decide what next.
New MD Ashok Nair has stepped in — no background in pyrotechnics, we hope.
13. EduInvesting Verdict™
RPG Life Sciences isn’t a massy Bollywood flick. It’s that critically acclaimed indie hit with great reviews, niche audience, and a surprise property deal in the second half.
Margins are climbing, profits are solid (even without land sales), and return ratios are glistening. But the stock is priced like it’s already won an Oscar.
A tight, mid-cap pharma bet — but remember: no sequel is guaranteed in this industry.
Written by EduInvesting Team | 25 July 2025
Tags: RPG Life Sciences Ltd, Pharma, Q1FY26, EduInvesting Premium, Land Sale, Ashok Nair, Dividend, SEBI Disclosure
