🧠 1. At a Glance
Everest Organics is a small-cap API manufacturer with big dreams and inconsistent execution. It serves molecules from rabeprazole to apixaban — but growth? Bleh. FY25 revenue fell to ₹159 Cr, and ROE is -2.2%. Promoters just dumped 13% stake, and the company’s financials are more volatile than a Twitter IPO. So why is it up 133% in one year? Short answer: speculation, not sales.
🎬 2. Introduction with Hook
Everest Organics sounds like a Himalayan health retreat. But it’s actually a ₹325 Cr micro-cap pharma stock that’s given traders a dopamine hit with its 1-year return — +133%. Is it turning around? Or is this just retail getting high on its own supply?
One glance at the numbers — falling revenue, inconsistent profits, high debtor days (202!), and a mysterious promoter stake cut — and this stock screams “🚨 Proceed with gloves and goggles.”
🧪 3. WTF Do They Even Do? (Business Model)
Everest Organics manufactures:
- APIs: For gastro, antifungal, anti-thrombotic, anti-diabetic, insomnia, and yes — overactive bladder 💦
- Intermediates: For blockbuster drugs like Febuxostat, Apixaban, Itraconazole, Pantoprazole, Oseltamivir, and more
- By-products: Like Ammonium Sulphate and Di-Ammonium Phosphate — sold to fertiliser and chemical companies
They export APIs to regulated and semi-regulated markets. Got USFDA + KDMF approval recently for select molecules.
But while the product basket is fancy, revenue growth has vanished, and capex hasn’t translated into returns.
📈 4. Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 182 | 200 | 183 | 197 | 159 |
| Net Profit (₹ Cr) | 14 | 1 | -0.2 | 0.3 | -1 |
| OPM % | 13% | 3% | 1% | 6% | 5% |
| ROE | 17% | 1.4% | -0.2% | 0.18% | -2.23% |
| ROCE | 34% | 6% | 4% | 6% | 1.76% |
🩺 Financial Diagnosis:
- 5-Year Sales CAGR: -1%
- 5-Year Profit CAGR: Negative
- FY25 PAT: Loss of ₹1 Cr
- P/E not meaningful, obviously
💸 5. Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹335 |
| Book Value | ₹72 |
| P/B | 4.65x |
| P/E | N/A (loss-making) |
🧠 Fair Value Range? Let’s be generous:
- Assume FY26e EPS: ₹4 (speculative recovery)
- Apply P/E range: 15x to 20x = ₹60 to ₹80
- That’s 70–80% lower than CMP!
🚨 Current valuation = fully speculative, likely running on news flows, not fundamentals.
🍲 6. What’s Cooking – News, Triggers, Drama
🧪 Good News:
- USFDA inspection passed (May 2024)
- Korea Drug Master File (KDMF) approval for Rabeprazole (Feb 2024)
- Environment non-compliance addressed (maybe)
- FY25 Q4 profit back to ₹2.91 Cr — first green in 4 quarters
🥶 Bad News:
- Promoter dumped 13.1% stake in Mar 2025
- CS and Technical Directors resigning faster than summer interns
- 202-day debtor days — either customers ghost them or credit control is on sabbatical
🏦 7. Balance Sheet – How Much Debt, How Many Dreams?
| FY25 Metric | Value |
|---|---|
| Equity Capital | ₹10 Cr |
| Reserves | ₹60 Cr |
| Total Borrowings | ₹48 Cr |
| Total Liabilities | ₹224 Cr |
| Net Block (FA+CWIP) | ₹72 Cr |
| Current Assets | ₹152 Cr |
😬 Nothing too scary, but CWIP of ₹21 Cr hasn’t delivered returns yet.
💰 8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF |
|---|---|---|
| FY23 | ₹18 Cr | Positive |
| FY24 | ₹16 Cr | Positive |
| FY25 | -₹5 Cr | Negative |
🪫 FY25 saw negative cash from ops. Not good for a smallcap pharma that claims growth ambitions.
📊 9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 1.76% ❌ |
| ROE | -2.23% ❌ |
| OPM | 5% ❌ |
| Debtor Days | 202 ❌ |
| Inventory Days | 168 ❌ |
| CCC | 15 days 😬 |
| Interest Coverage | Below 1 ✅ for roast mode |
🎯 Verdict: This is not a value stock, not a growth stock — just a chart pattern with a pharma label.
💸 10. P&L Breakdown – Show Me the Money
- FY25 Revenue: ₹159 Cr
- FY25 PAT: ₹(1) Cr
- FY25 EBITDA: ₹7 Cr
- EPS: -₹1.33
🧯 Q4FY25 alone had ₹2.91 Cr PAT, but yearly totals still negative.
🤼 11. Peer Comparison – Who Else Is in the Game?
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | ROE | P/E |
|---|---|---|---|---|
| Divi’s Labs | 9,360 | 2,191 | 15% | 84x |
| Sun Pharma | 52,578 | 11,453 | 16.8% | 35x |
| Everest Organics | 159 | -1 | -2.2% | N/A |
🐜 This is not even a small fish in a big pond — this is the plankton the big pharma whales ignore.
🧾 12. Misc – Promoters, Shareholding, Other Gyaan
| Group | Holding (Mar 2025) |
|---|---|
| Promoters | 61.09% ↓ from 74.15% ❌ |
| Public | 38.90% |
| DIIs | 0.02% |
| No. of Shareholders | ~8,700 |
📌 Promoter offload + zero institutional interest = speculative buzz stock in its purest form.
🧑⚖️ 13. EduInvesting Verdict™
Everest Organics may be climbing the price charts, but fundamentals are wheezing from altitude sickness.
- Sales declining for 3 years
- Net loss in FY25
- Auditor complaints, management exits, and massive promoter offloading
🎯 This is not a turnaround. It’s a momentum mirage. Play it only if you’re okay with falling off cliffs.
CMP: ₹335
FV Range: ₹60–₹80 (best-case turnaround)
✍️ Written by Prashant | 📅 9 July 2025
Tags: Everest Organics, API Pharma, Microcap Stocks, Pharma Penny Stocks, Promoter Exit, Momentum Stocks, EduInvesting
