Wockhardt Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Wockhardt Ltd trades at ₹2,179, in a confirmed uptrend and 17 weeks into that stage. That is +28.7% against its own 200-day average. It sits at 100% of a 52-week range of ₹1,176 to ₹2,179. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 2 straight weeks.

Today the stock is in a confirmed uptrend — week 17 of stage 2, confirmed. At ₹2,179 it trades +28.7% versus its 200-day average and sits at 100% of its 52-week range (₹1,176–₹2,179).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +143% while the NIFTY 500 moved +267% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 2 straight weeks — the ribbon below is that same metric, week by week.

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

Story check

Wockhardt Ltd's story is not scored yet against the markers our research file set on 14 June 2026. Where it sits in its own cycle: EARLY_TURNAROUND. Still open: US adoption requires 12-18 months for ID specialists to learn the molecule before acceleration; stock priced for post-acceleration, creating a window of PE compression if early data disappoints.

Our read, 14 June 2026. A decade-long R&D bet on novel antibiotics is finally delivering — Zaynic FDA approval creates a $1.5-2B peak sales path, while FY26 profitability and 19% EBITDA margin prove the base business has structurally recovered.

From the numbers. PE has corrected 38.76% from the Sep-Oct 2025 peak of 181.1x to 110.9x now — the re-rating was PRICE_DRIVEN ahead of earnings delivery; FY26 EPS delivery (TTM INR 13.11) is starting to close the gap. At the 67th…

From the price. Price stage 2, week 17 — above its 200-day line, relative strength rising.

From the research. A decade-long R&D bet on novel antibiotics is finally delivering — Zaynic FDA approval creates a $1.5-2B peak sales path, while FY26 profitability and 19% EBITDA margin prove the base business has structurally recovered.

🚨 Where they disagree. PE has corrected 38.76% from the Sep-Oct 2025 peak of 181.1x to 110.9x now — the re-rating was PRICE_DRIVEN ahead of earnings delivery; FY26 EPS delivery (TTM INR 13.11) is starting to close the gap. At the 67th percentile of 10Y history, valuation remains rich but is no longer at cycle extremes. The decomposition remains PRICE_DRIVEN — the market's anticipation of Zaynic commercialization revenue ran ahead of actual delivery. FII stake rose from 4.18% (Dec 2023) to 7.09% (Mar 2026); DII from 0.3% to 10.96% — institutional discovery is deepening post-FDA approval. The operating cycle is MID_EXPANSION with OPM at the 98th percentile of its own 10Y range (23.3% vs trough -93.1%) — current…

What is proven. A decade-long R&D bet on novel antibiotics is finally delivering — Zaynic FDA approval creates a $1.5-2B peak sales path, while FY26 profitability and 19% EBITDA margin prove the base business has structurally recovered.

What is not proven yet. US adoption requires 12-18 months for ID specialists to learn the molecule before acceleration; stock priced for post-acceleration, creating a window of PE compression if early data disappoints.

Layer 1 read, 27 June 2026 — KEEP. Real FY26 turnaround off four loss years, but priced as if Zaynic is already a $2B drug. Wockhardt printed its first profit since FY22 (PAT 199cr) with OPM up from 4% to 19% and Mar26 EPS of 10.22 versus -5.54 a year earlier — a genuine, young, earnings-driven turn, not re-rating. The catch is the price already demands an IMPOSSIBLE 51.4% growth rate (a model read) and rests on the Zaynic FDA option (a forward bet), with a single-quarter Mar26 profit spike inflating TTM.

What would change Layer 1’s mind. If the Sep/Dec 2025 profitability does not hold — i.e. a quarter reverts to an EPS loss or OPM drops back below ~12% — the 'base business structurally recovered' leg breaks and this becomes a one-quarter spike on an option, flipping P2 to DROP.

Layer 2 read, 27 June 2026 — BENCH. Real turnaround, but priced for perfection on a single-quarter profit spike in a topping sector — hold for proof. Wockhardt's first profitable year since FY22 (PAT 199cr, OPM 4%->19%) is genuine, but the Mar-26 profit that re-rated the multiple is a 2.7x single-quarter spike off a tiny base, and the PE-112 valuation is underwritten by Zaynic's $1.5-2B forward optionality (a model/forecast claim C054, not delivered earnings). Externally the Pharma-Formulators sector is lifecycle=TOPPING with the broad bunker thesis fractured by the gRevlimid/US-generic cliff — an extended stock (run_36_48mo 12.77) in a late sector earns a full-force BENCH, not admission.

What would change Layer 2’s mind. A second consecutive quarter confirming the new ~19% EBITDA-margin / profit base is durable (not a one-off mix print), OR a concrete Zaynic US-launch revenue ramp materializing — either would convert the forward optionality into a delivered base and flip BENCH->ADVANCE. Conversely an FDA/import-alert or litigation print on the legacy base would deepen toward DROP.

The test written in advance. Zaynic US commercial execution — 12-18 month hockey-stick gap — Zaynic US commercial execution — 12-18 month hockey-stick gap by the next result.

The test written in advance. PE at RICH valuation — PRICE_DRIVEN, EPS must now deliver — PE at RICH valuation — PRICE_DRIVEN, EPS must now deliver PE vs trailing TTM EPS ratio each quarter; when Zaynic first appears in revenue line by the next result.

The test written in advance. Working capital bloating — CCC expanded from 60 to 168 days — Working capital bloating — CCC expanded from 60 to 168 days CCC normalizing below 120 days; payable days recovering toward 220+; inventory days stabilizing by the next result.

Lever 12 · New product launch — BUILDING. FDA approval received; US commercial launch with experienced team (ex-Shionogi CCO) underway; 12-18 month hockey-stick ramp to segment breakeven; peak global revenue $1.5-2B guided. What proves it keeps working: Zaynic (WCK-5222) — FDA Approved, US Commercial Launch Underway. It stops working if Quarterly Zaynic US revenue; hospital system formulary placement announcements; academic medical center adoption press releases.

Lever 5 · Regulatory approval — BUILDING. Biosimilar business grew 27% FY26; insulin 2x, glargine 1.5x capacity; plan to double business in 24-36 months; 6-7 competitors vs 15-20 in MoAbs creates pricing headroom. What proves it keeps working: Biosimilar Platform — 27% Growth + Capacity Doubling. It stops working if Quarterly Zaynic US revenue; hospital system formulary placement announcements; academic medical center adoption press releases.

Sources: our stock research file (14 June 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Wockhardt Ltd reported ₹929 Cr of revenue in the Jun 26 quarter, +25.9% year on year. That is the 3rd straight quarter of year-on-year growth. Over 10 years it has compounded at −2.7% a year. The last full year, FY26, came in at ₹3,373 Cr. The last four reported quarters add to ₹3,564 Cr.

Why this happened. Zaynic received FDA approval — first Indian company-discovered drug approved by US FDA — per June 2026 concall (C045). Phase 3 showed 96.8% composite cure rate and 90% micro-cure vs Meropenem (C056). US commercial team is in place: CCO from Shionogi Fetroja launch, CMO from Boston hospital system, 3PL distribution partner (C055). Focus on academic medical centers with high-resistance Gram-negative patient populations. US adoption trajectory: 12-18 month slow ramp as infectious disease specialists learn the molecule, then material acceleration (C057). UK NHS subscription model (up to GBP 20M/year for 3 years independent of volume) de-risks revenue during ramp (C052). European regulatory…

FY26 revenue came in at ₹3,373 Cr (+12.0% on the year), capping 10 years at −2.7% compound. The latest quarter (Jun 26) printed ₹929 Cr, +25.9% year on year — the 3rd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +18.9% growth against the decade's −2.7% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +18.4% over the last 4 quarters against +11.0%/yr over the last 8 — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Wockhardt Ltd's operating margin is 21.0% in the Jun 26 quarter, +11.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −2.3% to 21.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 21.0%, +11.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −2.3%–21.0%.

Why the margin moved: operating margin went +10.9 pp year on year while gross margin went +1.3 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Wockhardt Ltd earned ₹107 Cr of net profit in the Jun 26 quarter. Full-year FY26 profit was ₹199 Cr. The 10-year compound rate is −2.3%. That is 11.5% of the quarter's revenue. The same quarter a year earlier lost ₹108 Cr. 7 of the last 12 reported quarters were loss-making.

Jun 26 profit was ₹107 Cr, null year on year. On the full year, FY26 printed ₹199 Cr (null), and the 10-year compound rate is −2.3%.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 5% of Wockhardt Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹390 Cr of operating cash against ₹199 Cr of profit. After ₹628 Cr of capital spending, ₹−238 Cr was left as free cash. Cash resolution here is annual, because quarterly cash statements are not published.

FY26: operating cash of ₹390 Cr against reported profit of ₹199 Cr, leaving free cash of ₹−238 Cr after ₹628 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 5% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 5%: the cash cycle stretched 11 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 11 days — the next section's job is to find where the cash is stuck.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Wockhardt Ltd's cash conversion cycle runs 168 days in FY26, up from 157 days in FY21. Capital spending ran ₹1,256 Cr over the last 3 years. At FY26 sales of ₹3,373 Cr each day of that cycle holds about ₹9.2 Cr, so roughly ₹1,553 Cr sits inside the business at any moment.

FY26: debtors at 64 days, inventory at 286 days — roughly 9.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 168 days, looser than FY21's 157.

The full loop: cash goes out to suppliers and production on day 0; stock waits 286 days to sell; customers pay about 64 days after that; and suppliers themselves are paid at 182 days — netting out to the 168-day cycle.

In money terms: at FY26 sales of ₹3,373 Cr, each day of the cycle holds about ₹9.2 Cr — so the 168-day loop keeps roughly ₹1,553 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1,256 Cr over the last 3 fiscal years against ₹667 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹2,379 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Wockhardt Ltd earns a ROCE of 8% in FY26. That is up from a trough of −3% in FY21. Return on invested capital clears the cost of that capital by −4.4 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 5.9% net margin on 0.39× asset turns.

FY26 ROCE is 8%, recovered from a FY21 trough of −3% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 5.9% net margin × 0.39× asset turns × 1.74× balance-sheet leverage ≈ 4.0% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 7.6% − 12.0% = a −4.4 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Wockhardt Ltd carries total debt of ₹2,233 Cr against shareholder equity of ₹5,281 Cr as of Mar 26, a debt-to-equity of 0.42. On the annual view that ratio went from 0.52 in FY22 to 0.42 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹2,233 Cr against shareholder equity of ₹5,281 Cr — a debt-to-equity of 0.42. On the annual view, debt-to-equity went from 0.52 (FY22) to 0.42 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 4.8 points of Wockhardt Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 9.2% of the company. Promoters moved −2.9 points over the same window, to 49.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +4.8 points over 8 quarters to 9.2%; Promoters: −2.9 points over 8 quarters to 49.1%; Foreign institutions: +1.3 points over 8 quarters to 7.2%.

Why the register moved: domestic institutions drove it (+4.8 points), absorbed on the other side by promoters (−2.9 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Wockhardt Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

Why this happened. Biosimilar/biotech business grew 27% in FY26 supported by scaled manufacturing: human insulin output 2x higher, glargine production 1.5x higher (C048). Market opportunity: diabetes biosimilar market valued Rs 6-7B in India and EM with only 6-7 competitive players (C060). Production capacity to double in 12-15 months to support doubling the business in 24-36 months (C061). Pipeline depth: 5 molecules in late-stage development (Aspart, RN37D, Degludec, Degludec Aspart, Semaglutide) after two-year development horizon (C062). Novo Nordisk discontinuing disposable pens creates supply gap opportunity in EM. Povisque novel antibiotic DCGI filing targeted within 2-3 months per June 2026 call (C063).

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Wockhardt Ltd trades at 88.8× P/E, mid-range by its own standards (46th percentile). Its long-run median P/E is 94.8×, measured across 10.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 88.8× is mid-range by its own standards (46th percentile), against a long-run median of 94.8× measured over 10.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

The price move, decomposed: over 5y, of the +41.6%/yr price move, ~−15.6%/yr came from earnings growth and ~+57.2 pp from the multiple (expanding); over 10y, of the +10.7%/yr price move, ~+7.2%/yr came from earnings growth and ~+3.5 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Wockhardt Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 12 quarters across 2 curves, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

54.3/100 — rank 15 of 44 in Pharma - Formulators · 74% evidence confidence

Wockhardt Ltd scores 54.3 out of 100 against the 44 companies it is compared with in Pharma - Formulators, ranking 15. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 24.9 + 5.3 + 8.8 + 15.3 = 54.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Frequently asked questions