Kwality Pharmaceuticals Ltd (KPL) — share price & stock analysis

Market cap

₹2,483 Cr

P/E

36.6×

ROE

22.8%

vs own 10-yr valuation

82nd pctile

Book value / share

₹320

EPS (TTM)

₹65.5

10-yr median P/E

13.2×

Revenue (FY26)

₹503 Cr

Profit after tax (FY26)

₹67 Cr

Weinstein stage

Stage 2 (24 weeks)

Data as of

5 June 2026

5 of the 6 things we track are currently moving the right way — nearly everything is pulling in the same direction.

Where the levels actually stand: ROCE 24% — a high-quality engine; debt moderate (0.39× equity); margins mid-band. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double.

The market has pre-paid for growth that hasn’t arrived yet

Since Oct 2017, the stock is up 4,503% while earnings per share grew 1,928%. The difference is re-rating — investors paying more for the same rupee of profit.pricettm_eps

That works until it doesn’t: from here, earnings have to do the lifting, because the multiple has already done its part.

Today’s P/E of 36.6× means the market is paying up — this is the expensive end of its own 10-year history (82nd percentile).pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots (the window starts at the first stable snapshot — earlier IPO-era share-count revisions are excluded, since they are not earnings events); between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (13.2×).

An uptrend that has held for 24 weeks

Every stock cycles through the same four seasons — a flat base (stage 1), an advance (2), a top (3), a decline (4). Right now this one is in Stage 2: advancing, 24 weeks in, confirmed.stage

The price sits above its rising 200-day average (₹1,367 today) and its strength against the index is still improving — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 21 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

A lumpy ride — no clean trend in profits

Over 12 years, sales went from ₹60.0 Cr to ₹503 Cr (about 19% a year), and profit from ₹1.0 Cr to ₹67.0 Cr.revenuenet_profit

Sales jumped 35% last quarter — growth every single quarter for over 2 years

Mar 26 sales were ₹157 Cr, up 35% on the same quarter last year.revenue

That makes 10 quarters of growth in a row — this is a trend, not a blip.revenue

Margins are widening — 22% → 25% in a year

Of every ₹100 of sales, the company keeps ₹24.7 as operating profit (a year ago it kept ₹22.4).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 11.1% in FY21 and has been rebuilt to 23.5% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

The gross margin barely moved (47% → 45%), so the change came from running costs — the business is getting more efficient as it scales.gpm_pctopm_pct

Profit exploded 79% — mostly from selling more

Mar 26 profit after tax was ₹25.0 Cr, up 79% year on year.net_profit

Most of the profit becomes cash — but not all

Over the last 5 profitable years, the business reported ₹270 Cr of profit and collected ₹215 Cr of operating cash — about 80% conversion.operating_cash_flownet_profit

The wrinkle is the latest year: FY26 collected ₹17.0 Cr against ₹67.0 Cr of reported profit — about 25%. One year isn’t a trend, but it is the line to watch.operating_cash_flownet_profit

The gap sits in receivables: customers now take 203 days to pay, up from 152. Profit booked, cash pending.debtor_days

The cash cycle is tightening — money comes home faster

One rupee now takes about 170 days to go out the door as materials and come back as collected cash — down from 208 days the year before.cash_conversion_cycle

The biggest mover: inventory moving faster off the shelf (167 → 111 days).inventory_days

The asset base keeps compounding — this company builds

The productive asset base has gone from ₹13.0 Cr (FY14) to ₹156 Cr, with another ₹17.0 Cr of capacity under construction right now.fixed_assetscwip

The build is self-funded: the last 3 years' investing outflow (₹90.0 Cr) fits inside the operating cash the business generated (₹113 Cr).investing_cash_flowoperating_cash_flow

Debt is present but comfortable

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹39 — total borrowings have grown from ₹6.0 Cr to ₹130 Cr over the window.borrowings

Every ₹100 kept in the business now earns ₹24 — and the number is rising

Return on capital employed is 24.0% (a year ago: 18.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

Rising returns on capital while growing is the rarest combination in investing — it means the new projects earn more than the old ones.roce_pct

Big money is quietly accumulating

Promoters hold 54.9%, essentially unchanged. Foreign funds own 2.8%, domestic funds 0.4%.promoters_pctfiis_pctdiis_pct

Institutions buying while the story develops is the market’s quiet vote of confidence — they meet management, you don’t.

The numbers earn a deeper study — and watch the one thing that matters

The numbers lean positive, and the price already assumes the good news continues.

Best thing in the data: profit rising (₹14.0 Cr → ₹25.0 Cr).net_profit

Biggest worry: free cash flow falling (₹24.0 Cr → ₹−18.0 Cr).operating_cash_flow

One dissent worth hearing: our valuation cycle lens reads negative — “PE at at peak — high risk of contraction. PE at 98th percentile of 10Y range. PE is +133% vs 10Y median. PE change driven by: HEALTHY. EV/EBITDA significantly a”. When a lens disagrees with the committee, it is usually pointing at the thing that breaks first.

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data