1. At a Glance
Bharat Parenterals Ltd (BPL) just posted another quarter where the P&L looks like it’s on life support—Q1 FY26 net loss of ₹0.87 Cr despite a revenue jump to ₹116 Cr (+12% QoQ). The stock, however, trades at a lofty ₹1,574, nearly 3.3x book value, because… well, retail love stories don’t need logic. With ROE and ROCE both negative, this is one pharma player that needs a turnaround prescription fast.
2. Introduction – The Zombie Drugmaker
Picture a hospital patient surviving only on glucose drips—that’s BPL’s finances. Despite a 30% TTM sales growth, profits are MIA, debtors are at 184 days, and the company still can’t convert revenue into cash. Investors? They seem to believe in miracles, or maybe just speculative adrenaline.
3. Business Model (WTF Do They Even Do?)
BPL manufactures and markets formulations across 800+ products—tablets, capsules, ointments, lotions, liquids, and most importantly powdered injections and small-volume parenterals. Basically, they make everything from cough syrup to life-saving injectables. They sell under their own brand and as a contract manufacturer, but margins bleed because scale isn’t big enough to fight the giants.
4. Financials Overview – The Bitter Pill
- Revenue (TTM): ₹364 Cr
- Operating Profit (TTM): ₹12 Cr (margin 3%)
- Net Profit (TTM): -₹36 Cr
- ROE: -4.8%
- ROCE: -4.6%
Verdict: Strong top-line growth, but bottom line is on a ventilator.
5. Valuation – What’s This Stock Worth?
- P/E: Not applicable (because losses).
- EV/EBITDA: Over 50x (ouch).
- Fair Value Range: ₹900–₹1,200 (market at ₹1,574 is living in denial).
DCF attempt? Excel gave up with a #REF! error.
6. What-If Scenarios – Dose Adjustments
- Bull Case: Debtors reduce, margins recover to 10%, profits revive → ₹1,800.
- Base Case: Losses continue, minor margin improvement → ₹1,200.
- Bear Case: Cash crunch, expansion stalls → ₹700.
7. What’s Cooking (SWOT)
Strengths: WHO-GMP certified facilities, 800+ products, export potential.
Weaknesses: Loss-making, high working capital cycle, declining promoter holding.
Opportunities: Contract manufacturing demand, pharma export boom.
Threats: Larger competitors, regulatory compliance costs, price caps.
Drama: 7/10 (investors love a tragic hero).
8. Balance Sheet – More Debt, Less Sweat Equity
| Particulars (₹ Cr) | FY25 |
|---|---|
| Assets | 649 |
| Liabilities | 649 |
| Borrowings | 180 |
| Equity | 331 |
Debt rising; reserves growing slower than your old savings account.
9. Cash Flow – Sab Number Game Hai
| Cash Flow (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Ops | 22 | -5 | -27 |
| Investing | -78 | -105 | -137 |
| Financing | 61 | 110 | 156 |
Operating cash negative; survival funded by debt and equity.
10. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE % | 2 | -5 | -5 |
| ROCE % | 7 | -5 | -4.6 |
| D/E | 0.3 | 0.4 | 0.5 |
| PAT Margin | 7 | -13 | -10 |
Negative returns, high debtor days—stress levels rising.
11. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY23 | 218 | 20 | 16 |
| FY24 | 257 | 23 | 11 |
| FY25 | 340 | 3 | -44 |
Revenue up, profits nosedived—classic growth-without-profit story.
12. Peer Comparison – Pharma League Table
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Sun Pharma | 52,578 | 11,454 | 36 |
| Cipla | 27,811 | 5,379 | 24 |
| Zydus Lifesc. | 23,242 | 4,644 | 21 |
| Bharat Parenter. | 364 | -36 | NA |
BPL: A small fish in an ocean full of sharks.
13. EduInvesting Verdict™
Bharat Parenterals is that underdog pharma player with potential—but currently bleeding cash like a bad surgery. Unless it fixes margins, improves cash flows, and stops burning investor patience, the stock’s rally is running on fumes. A high-risk bet where the pills could either cure or kill your portfolio.
Written by EduInvesting Team | 28 July 2025
Tags: Bharat Parenterals, Pharma Stocks, Smallcap Pharma, EduInvesting Premium
