1. At a Glance
Beta Drugs is not just another pharma stock. It’s a 5x multibagger SME graduate, armed with high ROE, a strong grip on oncology, and a secret wish to become India’s next Divi’s Lab—without the dividend distractions.
2. Introduction with Hook
If the pharma world had a B-school, Beta Drugs would be the ambitious topper who skipped fests to work on a breakthrough anti-cancer molecule.
- 5-Year Profit CAGR: 37%
- FY25 Revenue: ₹362 Cr | Net Profit: ₹42 Cr
- ROE: A boss-level 26%
But… no dividends. No margin of error. And now a bet on exports, API, and the Mexican market (Hola COFEPRIS). Can Beta sustain the hype?
3. Business Model (WTF Do They Even Do?)
Beta Drugs Ltd manufactures a wide range of oncology (anti-cancer) drugs, both injectables and tablets. It supplies:
- Hospitals & oncology chains in India
- Export markets (especially after receiving COFEPRIS—Mexico approval)
- APIs and finished formulations to global clients
They’re in the sweet (and painful) spot of Indian pharma—focused oncology. With over 30+ key products and multiple top-5 ranked molecules in India, it isn’t just surviving; it’s dominating a niche.
4. Financials Overview
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales | 227 | 296 | 362 |
| Operating Profit | 53 | 60 | 75 |
| Net Profit | 31 | 36 | 42 |
| OPM % | 23% | 20% | 21% |
| EPS (₹) | 30.4 | 36.1 | 42.0 |
Verdict: Clean, high-margin, consistently scaling. No fluff. No distractions.
5. Valuation
- EPS (FY25): ₹42.02
- CMP: ₹1,682 → P/E: 40x
- Book Value: ₹195 → P/B: 8.61x
Fair Value Range
| Method | Estimate (₹) |
|---|---|
| P/E @ 30x (Conservative) | 1,260 |
| P/E @ 40x (Current) | 1,680 |
| P/E @ 45x (Bullish) | 1,890 |
| DCF (Est.) | 1,500–1,750 |
EduInvesting FV Range: ₹1,450 – ₹1,850
Valuation not cheap, but priced like a future mid-cap star.
6. What’s Cooking – News, Triggers, Drama
- May 2025: Received COFEPRIS approval for API exports to Mexico
- Target: Double revenues by FY28
- March 2025: Bonus issue approved (1:20)
- Dec 2024: SME to Mainboard NSE & BSE migration complete
- Strategic director onboarding and preferential allotments show they’re gearing up for scale
- Capex & debt rise in FY25—watch that ₹133 Cr borrowings
Main Course: Exports + APIs + Oncology pipeline + plant expansions
7. Balance Sheet 💰
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 10 | 10 | 10 |
| Reserves | 113 | 148 | 187 |
| Borrowings | 20 | 15 | 133 |
| Fixed Assets | 63 | 65 | 89 |
| Other Assets (CA+INV) | 135 | 190 | 347 |
| Total Assets | 198 | 254 | 436 |
Key Takeaway:
Post capex and preferential issues, leverage has spiked—borrowings at ₹133 Cr. ROCE still high but must watch for overextension.
8. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Cash from Ops | 23 | 31 | 36 |
| Cash from Investing | -19 | -14 | -36 |
| Cash from Financing | -2 | -7 | 118 |
| Net Cash Flow | 2 | 9 | 118 |
Interpretation:
That ₹118 Cr financing cash is likely from preferential allotments + debt—being reinvested aggressively. Organic cash still solid.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 34% | 33% | 27% |
| ROE (%) | 30.4% | 36.1% | 25.9% |
| OPM (%) | 23% | 20% | 21% |
| Debt/Equity | 0.12 | 0.10 | 0.60 |
| Working Cap Days | 88 | 86 | 88 |
| Cash Conversion | 68 | 75 | 79 |
Sexy But Cautious: Return ratios are elite, but rising debt and inventory days deserve a close eye.
10. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales | 227 | 296 | 362 |
| Operating Profit | 53 | 60 | 75 |
| Net Profit | 31 | 36 | 42 |
| EPS (₹) | 30.4 | 36.1 | 42.0 |
The numbers scream growth. Margin stability in a sector like oncology? That’s rare air.
11. Peer Comparison
| Company | P/E | ROE % | OPM % | Rev FY25 (₹ Cr) | CMP (₹) |
|---|---|---|---|---|---|
| Beta Drugs | 37.1 | 25.8 | 21% | 362 | 1,682 |
| Sun Pharma | 35.5 | 16.9 | 28.7% | 52,578 | 1,694 |
| Divi’s Labs | 81.6 | 15.4 | 31.7% | 9,360 | 6,731 |
| Torrent Pharma | 62.2 | 26.5 | 32.3% | 11,516 | 3,521 |
| Zydus Lifesciences | 21.0 | 21.3 | 30.4% | 23,241 | 975 |
Beta punches above its weight—highest ROE, lowest revenue, no dividend. Like a compact puncher in a heavyweight ring.
12. Miscellaneous – Shareholding, Promoters
| Shareholder Type | Mar 2023 | Mar 2025 |
|---|---|---|
| Promoters | 66.73% | 66.73% |
| FIIs | 0.29% | 0.90% |
| DIIs | 0.04% | 0.26% |
| Public | 32.94% | 32.11% |
| No. of SHs | 1,424 | 3,139 |
Signal Check:
No dilution, promoters holding tight, FII/DII slowly increasing—shows rising institutional confidence.
13. EduInvesting Verdict™
Beta Drugs is no longer a penny pharma. With topline growing at 25%+, ROEs above 25%, and exports/API expansions in place, it looks well-positioned for its next leg.
However, rising debt, rich valuations, and lack of dividend signal it’s still in aggressive reinvestment mode. Execution will now matter more than numbers.
If the Mexico + API + Oncology trifecta works, this could go from niche gem to mid-cap marvel.
Metadata
Written by EduInvesting Analyst | 20 July 2025
Tags: Beta Drugs, Oncology Pharma, SME to Mainboard, COFEPRIS, API Exports, Smallcap Pharma
