Shivalik Rasayan Ltd (SRL) is that nerdy kid in class who gets patents in chemistry but fails in economics viva. India’s largest Dimethoate producer, second-largest Malathion maker, plus budding pharma API player. FY25 revenue: ₹326 Cr. PAT: ₹15 Cr. Market Cap: ₹813 Cr. P/E? 54x – that’s like pricing Maggi noodles at Taj rates. The company has brains (R&D, patents, USFDA plants) but profits are still pocket-money level.
2. Introduction
Founded in 1979 (back when Doordarshan ruled), Shivalik started with agrochemicals. Slowly, it dressed up in a lab coat and moved into oncology APIs, submitting DMFs to USFDA and CEPs to Europe. They’re now juggling two worlds:
Farmers: spraying Malathion on crops.
Doctors: prescribing Temozolomide to cancer patients.
Ambition? Big. Execution? Patchy. Revenues are growing at 11% CAGR over 5 years, but ROE (3.2%) and ROCE (5.4%) are lazier than a government babu on Monday morning.
Question for you: would you bet on a company that’s half “pesticides” and half “cancer drugs”? 🤔
3. Business Model (WTF Do They Even Do?)
SRL has two personalities:
Agrochemicals (~92% revenue): Old-school strength. Dimethoate & Malathion still pay the bills. Newer molecules (Azoxystrobin, CTPR, Dinotefuran) under pipeline – non-infringing processes = “China substitute.”
APIs (~8% revenue): Oncology + non-oncology APIs. 12 APIs developed, 2 US patents, 1 DMF filed, 4 CEPs submitted. API facility: USFDA/EU compliant at Dahej + unit in Dehradun.
International play: dossier filed in China (through Chinese marketing partner), discussions in Japan for Ibrutinib & Lenvatinib processes.
Also holds 42% stake in Medicamen Biotech Ltd, a listed pharma company. Like a side hustle in biotech.
4. Financials Overview
Source table
Metric
Latest Qtr (Q1 FY26)
YoY Qtr (Q1 FY25)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue
₹89.3 Cr
₹74.6 Cr
₹69.4 Cr
19.7%
28.6%
EBITDA
₹11.0 Cr
₹9.4 Cr
₹5.8 Cr
17.0%
89.6%
PAT
₹2.8 Cr
₹3.9 Cr
₹5.2 Cr
-54.6%
-45.7%
EPS (₹)
1.02
2.26
2.62
-54.9%
-61.1%
Annualised EPS = ~₹4.1. At CMP ₹516 → P/E = 126x (on annualised, not TTM).
Commentary: Sales growing nicely, but profits are dancing Garba – one quarter up, next quarter flat on the floor.
