SMS Pharmaceuticals Ltd (SMSPHARMA) — share price & stock analysis

Market cap

₹3,830 Cr

P/E

37.6×

ROE

14.3%

vs own 10-yr valuation

90th pctile

Book value / share

₹83.9

EPS (TTM)

₹10.9

10-yr median P/E

23.5×

Revenue (FY26)

₹887 Cr

Profit after tax (FY26)

₹102 Cr

Weinstein stage

Stage 2 (42 weeks)

Data as of

1 July 2026

3 of the 6 things we track are currently moving the right way — most of the dashboard is turning up.

Where the levels actually stand: ROCE 13% — decent; debt moderate (0.46× 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 Mar 2016, the stock is up 456% while earnings per share grew 100%. 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 37.6× means the market is paying up — this is the expensive end of its own 10-year history (90th percentile).pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; 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 (23.5×).

An uptrend that has held for 42 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, 42 weeks in, confirmed.stage

The price sits above its rising 200-day average (₹346 today) — 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 47 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 business that went through the fire — losses in FY23, records now

Over 13 years, sales went from ₹193 Cr to ₹887 Cr (about 12% a year), and profit from ₹25.0 Cr to ₹102 Cr.revenuenet_profit

The books show real losses in FY23 (worst: ₹−7.0 Cr). Everything about today’s cheap-looking numbers must be read against that history — the recovery is what you are buying.net_profit

Sales have gone quiet — growth has stalled

Mar 26 sales were ₹238 Cr, down 4% on the same quarter last year.revenue

A shrinking topline puts the burden of the story on margins and one-offs — watch whether this is a pause or a slide.

Margins have been rebuilt — 10.5% in FY23 to 19.3% now

Of every ₹100 of sales, the company keeps ₹16.8 as operating profit (a year ago it kept ₹16.4).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 10.5% in FY23 and has been rebuilt to 19.3% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

Profit exploded 65% — mostly from one-off items

Mar 26 profit after tax was ₹33.0 Cr, up 65% year on year.net_profit

Most of the profit becomes cash — but not all

Over the last 4 profitable years, the business reported ₹283 Cr of profit and collected ₹236 Cr of operating cash — about 83% conversion (1 loss year excluded — a negative denominator would flatter the ratio).operating_cash_flownet_profit

The wrinkle is the latest year: FY26 collected ₹59.0 Cr against ₹102 Cr of reported profit — about 58%. One year isn’t a trend, but it is the line to watch.operating_cash_flownet_profit

The cash cycle is stretching — more money stuck in the pipeline

One rupee now takes about 260 days to go out the door as materials and come back as collected cash — up from 237 days the year before.cash_conversion_cycle

The biggest mover: inventory sitting longer in the warehouse (238 → 260 days).inventory_days

Building hard — new capacity is under construction

The productive asset base has gone from ₹69.0 Cr (FY07) to ₹534 Cr, with another ₹122 Cr of capacity under construction right now.fixed_assetscwip

Work-in-progress is 23% of the existing asset base — that is a serious bet on future demand. Capacity like this shows up in sales with a lag; it is tomorrow’s growth being paid for today.cwip

The build is bigger than the cash engine: investing outflows (₹306 Cr) exceeded operating cash (₹191 Cr) over the last 3 years — the difference comes from debt or shareholders.investing_cash_flowoperating_cash_flow

Debt is present but comfortable

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹46 — total borrowings have grown from ₹73.0 Cr to ₹365 Cr over the window.borrowings

Every ₹100 kept in the business earns ₹13 — decent, not special

Return on capital employed is 13.0% (a year ago: 13.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

Promoters are adding — up 3.4 points over 8 quarters

Promoters hold 68.1% (up 3.4 points over 8 quarters). Foreign funds own 0.3%, domestic funds 3.0%.promoters_pctfiis_pctdiis_pct

A turnaround that stuck — the question is what’s left to re-rate

The numbers are genuinely mixed, and the price already assumes the good news continues.

Best thing in the data: profit rising (₹20.0 Cr → ₹33.0 Cr).net_profit

Biggest worry: free cash flow falling (₹−41.0 Cr → ₹−72.0 Cr).operating_cash_flow

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