Recent Price Movement and Market Context
On 26 Nov 2025, Bal Pharma opened and traded steadily at Rs.74, the lowest price level recorded in the past year. The stock has underperformed its sector by 1.56% on the day, continuing a sequence of losses that have accumulated to a 7.9% decline over the last eight days. This persistent slide places the stock below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In contrast, the broader market has shown resilience. The Sensex, after a flat start with a minor dip of 83.57 points, climbed 344.44 points to close at 84,847.88, representing a 0.31% gain. The benchmark index remains close to its 52-week high of 85,801.70, trading 1.12% below that peak. Additionally, the Sensex is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. Small-cap stocks led the market rally, with the BSE Small Cap index gaining 0.62% on the day.
Long-Term Performance and Valuation Metrics
Bal Pharma’s one-year performance shows a return of -43.32%, a stark contrast to the Sensex’s 6.05% gain over the same period. The stock’s 52-week high was Rs.133.20, indicating a substantial decline from its peak. Over the last three years, the stock has also underperformed the BSE500 index, reflecting challenges in maintaining growth and profitability.
From a valuation perspective, the company presents an enterprise value to capital employed ratio of 1.2, which is considered attractive relative to its peers. However, this valuation is accompanied by concerns regarding the company’s ability to generate returns and service its debt obligations effectively.
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Financial Health and Profitability Indicators
Bal Pharma’s long-term fundamental strength is reflected in an average Return on Capital Employed (ROCE) of 9.24%, which is modest within the Pharmaceuticals & Biotechnology sector. The company’s net sales have grown at an annual rate of 8.78% over the past five years, indicating limited expansion in revenue generation.
Debt servicing capacity is a notable concern, with a Debt to EBITDA ratio of 4.53 times, suggesting a relatively high leverage position. The company’s operating profit to interest coverage ratio stands at 1.48 times for the most recent quarter, indicating limited buffer to meet interest obligations from operating earnings.
Profit before tax excluding other income (PBT LESS OI) for the latest quarter was reported at a loss of Rs.0.40 crore, representing a decline of 125.64% compared to the previous period. The half-year ROCE is recorded at 8.99%, the lowest in recent assessments, underscoring challenges in generating efficient returns on capital.
Recent Quarterly Results and Shareholding
The company has reported negative results for four consecutive quarters, reflecting ongoing pressures on profitability. Despite these results, the majority shareholding remains with the promoters, indicating continued control by the founding stakeholders.
Profitability has also been affected over the past year, with profits falling by 11%, further contributing to the stock’s subdued performance. These factors collectively have influenced the stock’s current valuation and price levels.
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Sector and Market Comparison
Within the Pharmaceuticals & Biotechnology sector, Bal Pharma’s performance contrasts with broader market trends. While the sector has experienced fluctuations, the Sensex’s positive trajectory and small-cap rally highlight a divergence in performance. The stock’s trading below all major moving averages further emphasises its current weakness relative to sector peers and the market at large.
Bal Pharma’s valuation discount compared to historical peer averages may reflect market caution given the company’s recent financial results and leverage metrics. The stock’s current price level at Rs.74 is significantly below its 52-week high, underscoring the extent of the market’s reassessment of the company’s prospects.
Summary of Key Metrics
To summarise, Bal Pharma’s key financial and market indicators as of 26 Nov 2025 include:
- 52-week low price: Rs.74
- One-year return: -43.32%
- Debt to EBITDA ratio: 4.53 times
- Operating profit to interest coverage: 1.48 times
- Average ROCE (long term): 9.24%
- Net sales growth (5-year CAGR): 8.78%
- Profit decline over past year: 11%
These figures provide a comprehensive view of the company’s current standing within the Pharmaceuticals & Biotechnology sector and the broader market environment.
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