🧾 At a glance
Kabra Drugs Ltd, with a ₹29 crore market cap and zero revenue for 3 years, is back in the headlines — not for a blockbuster drug, but because it plans an acquisition, a new subsidiary, and a fresh drug license. All this while sales remain stuck at ₹0.00 crore. Where’s the business? Who’s the buyer? What’s cooking?
🧪 About the Company
- Incorporated: 1989
- Business: Manufacturing & trading in pharma formulations and API ingredients
- Focus areas:
- Cardiovascular
- Anti-infective
- Oncology
- Gastro
- Hormonal
- Miscellaneous drugs (aka… whatever works)
- Promoters: There are none. Yes, 100% public shareholding.
💼 Key Corporate Developments
- June 2025: Board to discuss acquisition, new drug license, and subsidiary creation
- May 2025: Appointed secretarial auditor (finally, some compliance)
- Mar 2025: Confirmed no deviation in use of ₹21.8 Cr preferential allotment funds
- FY25: Equity base suddenly jumped from ₹4.4 Cr to ₹23.7 Cr 🚨
📌 Where did the money go? To the balance sheet. Where did the revenue go? We’ll let you know when we find it.
📊 5-Year Financial Recap
| ₹ in Cr | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| EBITDA | -0.15 | -0.18 | -0.35 | -0.74 | -1.72 |
| Net Profit | -0.18 | -0.19 | -0.34 | -0.74 | -1.09 |
| Equity Capital | 4.39 | 4.39 | 4.39 | 4.39 | 23.71 |
| Reserves | -4.60 | -4.78 | -5.12 | -3.31 | 0.95 |
| ROE (%) | -27% | -28% | -53% | -43% | -8.47% |
🧯Resurrected from the dead? Reserves finally turned positive after years underwater. But the P&L still needs a life jacket.
💰 Where Did ₹21.8 Cr Go?
💡 The company issued preferential shares and raised ₹21.8 Cr in FY25. Here’s the impact:
- Fixed assets increased from ₹0.00 to ₹0.04 Cr
- Cash & equivalents rose to ₹18 Cr+
- Borrowings dropped to ₹0.44 Cr
- Reserves went from negative to positive
- Still zero operating revenue in FY25
🧾 Statement: “No deviation in fund utilization”
EduInvesting interpretation: “Money went into bank, not business.”
🧮 Forward-Looking Fair Value Estimate
This is tricky.
Let’s assume:
- Company gets drug license
- Launches a subsidiary
- Generates just ₹5 Cr in sales in FY26
- Margins at 10%, PE of 15 (very generous)
That gives EPS = ₹0.2 → FV Range = ₹3–₹6
But wait — it’s already trading at ₹12.
📉 Unless a real operating business shows up, current price bakes in an invisible pipeline.
📉 Stock Performance
| Period | CAGR |
|---|---|
| 3-Year | +40% |
| 1-Year | +54% |
| 10-Year | -10% |
So yes, the stock has doubled. But not the business.
🧠 EduInvesting Take
This is the kind of stock that’s like a pharma company with no pills. Just paperwork, press releases, and a well-written board agenda.
Let’s break it down:
✅ Raised ₹21.8 Cr
✅ Cleared secretarial compliance
✅ Clean capital structure (zero promoter holding — rare)
❌ Zero sales
❌ Losses every quarter
❌ No sign of drug pipeline, product launch, or customer list
And yet… it wants to acquire another company? It’s like a broke startup applying to buy Tata Motors.
We’re not saying it’s a fraud. We’re just saying it’s… aspirational.
🧨 Risks & Red Flags
- 🚫 No revenue for 3 straight years
- 🚫 Continuous operational losses
- 🚫 No promoter holding — no skin in the game
- 🚫 Use of preferential allotment unclear beyond “investments and growth”
- 🚫 Sudden corporate buzz with no P&L revival
🏁 TL;DR
| Metric | FY25 Status |
|---|---|
| Revenue | ₹0.00 Cr |
| Net Profit | ₹-1.09 Cr |
| Equity Capital | ₹23.7 Cr |
| Reserves | ₹0.95 Cr |
| ROE | -8.47% |
| Preferential Funds Raised | ₹21.8 Cr |
| Plans | Subsidiary, License, Acquisition |
| Real Business? | Still Missing |
Tags: Kabra Drugs, share analysis, Kabra penny stock, Pharma smallcap hidden gem?, pharma stock no revenue, ₹12 stock multibagger?, preferential allotment pharma, loss-making pharma India
Author: Prashant Marathe
Date: 12 June 2025
