At a glance
Kwality Pharmaceuticals Ltd, a once-ignored smallcap drugmaker from Punjab, has quietly scaled its revenue6x in 5 yearsand posted ₹40 Cr PAT in FY25. Despite ANVISA, EU-GMP licenses, and over 3000 formulations, the stock trades at a modest26x P/E, with no dividends and a massive 152-day receivable cycle. Is this the next pharma underdog? Or a value trap in a white coat?
1. 💊 About the Company
Founded in 1983, Kwality Pharma is an export-heavy manufacturer of:
- Formulations across 25+ therapeutic areas
- Cephalosporins, Beta-Lactams, Oncology, Biologics
- Injectables, Orals, APIs, and even toilet requisites(yes, it’s in the filings)
- HasANVISA, EU GMP, and other major regulatory approvals
It serves aglobal market, with a strong focus on regulated export geographies, including Brazil, EU, and parts of Africa.
2. 👨⚕️ Key
Managerial Personnel (KMP)
- Mr. Sandeep Jain – CMD
- Mr. Naveen Jain – CFOBoth part of the founding family, overseeing expansion, regulatory approvals, and export growth.
Recent concall (June 2025) confirms the company is eyeing a₹500 Cr revenue target for FY26, riding on new orders and expanding capacity.
3. 📈 Financial Performance (FY21–FY25)
Revenue (₹ Cr)
| Year | Revenue |
|---|---|
| FY21 | ₹262 |
| FY22 | ₹456 |
| FY23 | ₹251 |
| FY24 | ₹307 |
| FY25 | ₹370 |
5-year CAGR:22%Despite COVID volatility in FY23, Kwality bounced back smartly.
Net Profit (₹ Cr)
| Year | PAT |
|---|---|
| FY21 | ₹15 |
| FY22 | ₹120 (one-time spike) |
| FY23 | ₹19 |
| FY24 | ₹24 |
| FY25 | ₹40 |
3-year CAGR:-31%(distorted by FY22 spike)TTM Profit Growth:+38%— that’s the actual trend now.
Margins & Ratios
| Metric | FY25 |
|---|---|
| OPM | 22% |
| ROCE | 18.4% |
| ROE | 16.3% |
| EPS | ₹38.41 |
| P/E | 26.8x |
| P/B | 4.0x |
| Book Value | ₹254 |
| Debtor Days | 152 (!!) |
