1. At a Glance
Novelix Pharma is a ₹122 Cr microcap listed on BSE, claiming to operate in “pharma retail & distribution.” But the business history includes food trading, real estate, and investing in shares. Recent name change, open offers, board shuffles, and zero clarity on actual operations. Profitable? Barely. Investable? LOL.
2. Intro with Hook
It started as Trimurthi Ltd — traded food grains, dabbled in property, invested in shares.
Now it’s called Novelix Pharmaceuticals.
Here’s the twist:
- 12-month EPS = ₹0.03
- P/E = 1,522x 🫣
- ROE = 0.64%
- Debt: Zero ✅
- Cash from operations: -₹13 Cr ❌
And yet… stock is up 146% YoY. Welcome to smallcap India — where narratives moon faster than numbers.
3. WTF Do They Even Do? (Business Model)
Their website says “pharma distribution and retail.”
Their financials suggest:
- 📦 Food trading
- 📉 Share investments
- 🏠 Land speculation
Key issues:
- No evidence of branded product lines
- No MRs, no IPs, no patents
- Revenue recently jumped but sources unclear
In short: they sell “stuff.” But you won’t find it on 1mg.
4. Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue | ₹1.14 Cr | ₹1.92 Cr | ₹4.49 Cr | ₹30.72 Cr |
| Net Profit | ₹-1.56 Cr | ₹-0.06 Cr | ₹0.01 Cr | ₹0.08 Cr |
| OPM | -151% | 0% | 0.45% | 0.46% |
| ROE | -19% | 0% | 0.1% | 0.64% |
| P/E | — | — | — | 1,522x |
🧯 Sure, revenue 6x’d in FY25, but PAT = ₹8 lakh. Yes. Just 8 lakh rupees.
5. Valuation – Is It Cheap, Meh, or Crack?
Let’s not pretend.
- CMP = ₹48.8
- EPS = ₹0.03
- P/E = 1,522
- Book Value = ₹7.03 → P/B = 6.94
- ROE = 0.64%
Fair Value Calculation:
- Generous EPS = ₹0.5
- P/E band for such co = 15–20
- Fair Value = ₹7.5 – ₹10
📌 CMP = ₹48.8 → OVERVALUED by 5X+
🚨 Valuation defies all logic
6. What’s Cooking – News, Triggers, Drama
🧨 Renamed to Novelix Pharmaceuticals in 2024
📈 Revenue jump from ₹4.5 Cr → ₹30.7 Cr in FY25
🔁 Open offer by Srinidhi Fine-Chemicals to acquire 26.65% stake
🧑⚖️ Series of board changes, EGM meetings, and preferential issues
🧻 Issued convertible warrants, raising eyebrows
🚫 Still no update on products, plants, or actual business model
Big promises. No disclosures.
7. Balance Sheet – How Much Debt, How Many Dreams?
| FY25 Snapshot |
|---|
| Equity Capital = ₹9.95 Cr |
| Reserves = ₹7.59 Cr (up from negative 2 years ago) |
| Borrowings = ₹0 ✅ |
| Total Assets = ₹27.2 Cr (up 4x in 1 year) |
⚠️ Asset surge not explained
⚠️ Mostly current assets — no evidence of capacity expansion
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY25 | ₹-13.68 Cr | ₹2.93 Cr | ₹11.31 Cr | ₹0.56 Cr |
🔴 Operating cash flow is deeply negative
🟡 Raised cash via preferential issue (CFF = ₹11.3 Cr)
📉 Not self-sustaining
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 0.64% ❌ |
| ROCE | 0.96% ❌ |
| OPM | 0.46% ❌ |
| Debtor Days | 215 ❌ |
| Inventory Days | 10 |
| P/E | 1,522 ❌ |
| P/B | 6.94 ❌ |
🚩 Huge working capital trap
🚩 High receivables + zero profitability = classic red flag zone
10. P&L Breakdown – Show Me the Money
- FY25 Sales = ₹30.72 Cr
- Operating Profit = ₹0.14 Cr
- Net Profit = ₹0.08 Cr
- EPS = ₹0.03
- Dividend = 0
- Other Income = ₹0.02 Cr
🧪 Microscopic profit, no leverage, no moat.
11. Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | OPM | Sales | PAT |
|---|---|---|---|---|---|
| MedPlus | 68x | 9.05% | 7.9% | ₹6,136 Cr | ₹150 Cr |
| Entero Healthcare | 57x | 5.6% | 3.4% | ₹5,096 Cr | ₹95 Cr |
| Novelix | 1,522x | 0.64% | 0.46% | ₹30.7 Cr | ₹0.08 Cr |
Not even in the same galaxy.
12. Misc – Shareholding, Promoters, etc.
- Promoter Holding: 66.56% (stable)
- No DII or FII interest
- Public: 33.4%
- Shareholders: Only ~2,480
- 🚨 Recent open offer + management shuffle + warrants = classic reverse-merge/valuation game?
Watch this space, but don’t expect disclosures on time.
13. EduInvesting Verdict™
Novelix is a masterclass in “optics > operations.”
✅ Changed name
✅ Revenue spurt
✅ Management shuffle
✅ Open offers
✅ Share price 2X in 12 months
But:
- P/E is 1,500+
- ROE < 1%
- No moat, no clarity, no value
Verdict: This isn’t a pharma company — it’s a corporate makeover project with lipstick and no EBITDA.
✍️ Written by Prashant | 📅 11 July 2025
Tags: Novelix Pharma, Trimurthi Ltd, BSE Microcaps, Penny Stock Red Flags, Pharma Shell Companies, P/E 1500 Club, Reverse Merger Candidates, Retail Pharma India, EduInvesting Deep Dive
