📌 At a glance:
Bajaj Healthcare Ltd reported a flat FY25 revenue of ₹393 crore (vs ₹392 crore in FY24), and a 12% decline in PAT to ₹34.84 crore. Margins shrank. Cash flow dipped. The stock responded with a 7.4% drop to ₹558.15. But wait – there’s a twist: the company declared a ₹3.50/share dividend, and promoters keep hiking stake. So is this a sleeping compounder… or just sedated?
💼 About the Company
Bajaj Healthcare Ltd is a vertically integrated pharma and nutraceuticals company that manufactures:
- APIs (Active Pharmaceutical Ingredients)
- Intermediates
- Finished formulations
- Nutraceuticals
It exports to 50+ countries and plays in therapeutic segments like cardio, anti-infective, anti-malarial, anti-diabetic, and more. Oh, and they love acronyms almost as much as they love slow-moving balance sheets.
🧑⚕️ Key Managerial Personnel (KMP)
- Anil Jain – Chairman & MD
- Bimal Jain – Joint Managing Director
- Rakesh Shah – CFO
- Lalitkumar Sonawane – Company Secretary
Together, they’re fighting inflation, global supply pressures… and investor apathy.
📊 FY25 Financials (Audited)
| ₹ in Crore | FY25 | FY24 | Change |
|---|---|---|---|
| Total Income | ₹393.16 Cr | ₹392.42 Cr | +0.19% |
| EBITDA | ₹52.57 Cr | ₹58.01 Cr | -9.4% |
| EBITDA Margin (%) | 13.4% | 14.8% | -140 bps |
| Net Profit (PAT) | ₹34.84 Cr | ₹39.76 Cr | -12.37% |
| PAT Margin (%) | 8.9% | 10.1% | -120 bps |
| EPS (Diluted) | ₹23.17 | ₹26.43 | -12.3% |
| Dividend | ₹3.50/share | ₹3.00/share | +16.7% |
👀 Observations:
- Revenue is stuck in a coma – up less than 0.2%
- Net profit dipped, margins squeezed, EBITDA subdued
- Dividend sweetener seems to be their only vitamin supplement
📉 Q4 FY25 Snapshot
| ₹ in Crore | Q4 FY25 | Q4 FY24 | Change |
|---|---|---|---|
| Total Income | ₹104.89 Cr | ₹99.49 Cr | +5.4% |
| Net Profit | ₹8.43 Cr | ₹10.67 Cr | -21% |
| EPS | ₹5.61 | ₹7.10 | -21% |
A Q4 revenue uptick couldn’t rescue falling profit. A ₹2.24 crore hit in tax expense alone took a scalpel to net margins.
🧮 Forward-Looking Fair Value (FV) Calculation
Let’s be generous.
- Assume FY26 EPS rebounds to ₹28
- Industry average P/E: 22x for midcap pharma
- Fair Value = ₹28 × 22 = ₹616
🧪 CMP = ₹558.15 → Still some upside, but only if they pick up growth. Otherwise, this capsule could get crushed.
🚀 Estimated Growth Outlook
Positives:
- Europe + Middle East exports gaining traction
- Nutraceutical market expected to grow at 12% CAGR globally
- Cost control via vertical integration
- Increasing promoter stake (>65% now) – signal of long-term belief?
Challenges:
- Zero revenue growth in FY25 = red flag
- Raw material cost pressures from China
- Limited R&D pipeline disclosure
- Competition from aggressive CRAMS and API-focused peers
🧠 EduInvesting Take
Look, Bajaj Healthcare isn’t dying. But it’s also not winning any races. It’s that one pharma stock in your portfolio that:
- Pays a small dividend,
- Doesn’t break your heart,
- But also doesn’t break any records.
This is not a multibagger.
This is a slow chewer, best consumed with a glass of water and mild expectations.
The company has respectable fundamentals. But unless growth breaks out of its ICU bed, the stock will keep being a dividend utility more than a compounding engine.
And let’s not forget – ₹393 crore revenue in FY25?
We’ve seen SME IPOs claim higher forward revenues in their pitch decks 😂
⚠️ Risks & Red Flags
- Working capital intensity remains high
- Dependency on a few large customers for formulations
- Forex volatility (export exposure = 30%+)
- No analyst coverage = low institutional visibility
- Lack of consistent R&D pipeline updates
📝 Tags: Bajaj Healthcare, Q4 FY25 Results, Pharma Stocks India, Dividend Stocks, Bajaj Healthcare Analysis, NSE BSE Updates, EduInvesting, API Manufacturer India, Pharma Slow Growers, Promoter Holding Rising
✍️ By: Prashant Marathe
📅 Published: May 27, 2025
🏷️ CMP: ₹558.15 | % Move Today: -7.41%
