by Prashant Marathe | EduInvesting.in | 23 May 2025
📌 At a Glance:
| Metric | Q4 FY25 | FY25 Total |
|---|---|---|
| 🧾 Revenue from Ops | ₹2,116 Cr | ₹7,896 Cr |
| 💰 Net Profit (PAT) | ₹197 Cr | ₹707 Cr |
| 📈 EPS (Annualized) | ₹9.97 | ₹36.43 |
| 🎯 CMP | ₹1,189 (+10% today) |
👉 With margins rising, a distribution tie-up with Sanofi, global acquisitions, and a listing only 10 months old, Emcure is now flexing serious post-IPO muscle.
🧬 About Emcure Pharmaceuticals
- Based in Pune, founded 1981
- Present in 70+ countries
- Top 12 pharma player in India
- Strong franchises: Women’s Health, Cardio, OTC, and now expanding in Dermatology
- Acquired Mantra Pharma (Canada) and partnered with Sanofi for Cardiovascular product distribution in India
📊 Financial Snapshot – FY25 (Consolidated)
| Metric | FY25 | FY24 | YoY Growth |
|---|---|---|---|
| Revenue from Ops | ₹7,896 Cr | ₹6,658 Cr | +18.6% |
| EBITDA | ₹1,469 Cr | ₹1,230 Cr | +19.4% |
| Net Profit | ₹707 Cr | ₹528 Cr | +34.1% |
| EPS | ₹36.43 | ₹27.54 | +32.3% |
| EBITDA Margin | 18.6% | 18.5% | Stable |
| PAT Margin | 9.0% | 7.9% | Improving |
💥 Key kicker? Q4 PAT up 63% YoY.
Emcure is scaling both topline and bottomline.
🔮 Forward Valuation
| Metric | Value |
|---|---|
| FY25 EPS | ₹36.43 |
| CMP | ₹1,189 |
| P/E | ~32.6x |
Assuming 20% CAGR for 2 years:
- FY27E EPS = ₹53
- FV at 30x = ₹1,590
➡️ 18–20% annual upside possible
📈 Verdict: Fairly priced, modest upside, but any margin expansion or new deal could re-rate this quickly.
💰 Dividend
- Final dividend of ₹3/share announced
- Total payout: ~₹57 Cr
- Yield: ~0.25% (not a dividend play)
🧾 Balance Sheet Review (as of Mar 31, 2025)
| Metric | FY25 | FY24 |
|---|---|---|
| Equity Capital | ₹1,895 Cr | ₹1,812 Cr |
| Reserves | ₹42,567 Cr | ₹27,711 Cr |
| Total Assets | ₹82,327 Cr | ₹78,061 Cr |
| Debt (Total Liabilities) | ₹35,912 Cr | ₹46,844 Cr |
📉 Debt-to-equity ratio has improved drastically:
- From 1.47x → 0.81x
- 🚨 Big drop in short-term borrowings: ₹13,207 Cr → ₹5,417 Cr
✅ Deleveraging in progress
✅ Cash flows from operations: ₹8,517 Cr
❌ Net cash still negative (overdraft used)
🌍 Growth Drivers
| Segment | Growth |
|---|---|
| Domestic | +24.8% YoY |
| International | +15.6% YoY |
| Emerging Markets | +39.3% |
| Europe | Flat |
| Canada (via Mantra) | +35.7% |
🚀 Strong pipeline, new launches, and global integrations are working.
🧠 EduInvesting Take
Emcure is doing what most pharma IPOs promise but never deliver:
- EPS is actually growing
- Margins are stable or improving
- Sanofi partnership is gaining traction
- Acquisitions like Mantra are delivering ROI
Unlike a Zydus or Glenmark, they’re not stuck in the generics cycle. They’re building scale through differentiation + licensing.
⚠️ Risks
| Red Flag | Comment |
|---|---|
| Working capital | Receivables = ₹20,022 Cr |
| Europe | Still flat — low growth, high cost |
| Canada | -11.5% QoQ decline (Mantra peak?) |
| Forex volatility | Significant in consolidated results |
| High P/E | At ~33x, no room for error |
🧪 Final Verdict: Powerful Q4 Punch, Ready for Rerating?
“Emcure isn’t a hope stock anymore. It’s now a performance story.”
With ₹707 Cr PAT, expanding reach, Sanofi synergies, and Canada/EU scale, the company is set to grow EPS 20–25% annually.
📈 If results keep trending this way, ₹1,500 is a realistic FY26 target
📉 If margins compress or forex plays foul, expect consolidation at ₹1,000–₹1,200
📌 EduInvesting Rank: 4.2/5
Long-term investors, keep it on your radar.
Short-term traders — trail your stop-loss and let it run.
Tags: Emcure Pharmaceuticals FY25 results, pharma multibagger, EPS growth pharma, Emcure vs Sanofi, Emcure Q4 earnings, Sanofi deal impact, pharma earnings India, EduInvesting audit mode, Emcure share price target 2025
