Revenue and Profitability Trends
Net sales for Choksi Laborator have shown a consistent upward trajectory from ₹25.69 crores in March 2021 to ₹41.78 crores in March 2025, reflecting a compound growth trend despite some fluctuations in earlier years. Total operating income mirrored this growth, rising from ₹25.69 crores in 2021 to ₹41.78 crores in 2025, indicating a strengthening top line. The company’s operating profit margin, excluding other income, improved significantly from 15.88% in 2021 to 26.88% in 2025, highlighting enhanced operational efficiency and cost management.
Operating profit (PBDIT) excluding other income increased from ₹4.08 crores in 2021 to ₹11.23 crores in 2025, underscoring a robust recovery in earnings before interest, depreciation, and tax. Despite rising interest expenses, which climbed from ₹2.77 crores in 2021 to ₹2.65 crores in 2025, the company managed to improve its gross profit (PBDT) from a low of ₹1.80 crores in 2021 to ₹8.65 crores in 2025. Profit before tax turned positive again after losses in 2020 and 2021, reaching ₹2.15 crores in 2025. Correspondingly, profit after tax rose from a loss of ₹2.61 crores in 2021 to a profit of ₹1.52 crores in 2025, with the PAT margin improving to 3.64% in the latest fiscal year.
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Cost Structure and Margins
Choksi Laborator has maintained a relatively stable cost structure with raw material costs remaining low relative to sales, around ₹3.10 crores in 2025. Employee costs have risen steadily from ₹11.50 crores in 2021 to ₹16.98 crores in 2025, reflecting possible expansion or wage inflation. Power and manufacturing expenses have also increased moderately, but the company has managed to keep selling and distribution expenses at zero, which may indicate a direct sales model or cost containment in marketing. Other expenses have decreased from ₹6.52 crores in 2019 to ₹5.39 crores in 2025, contributing to improved operating margins.
The gross profit margin improved notably from a negative margin in 2020 to 20.7% in 2025, signalling a turnaround in core profitability. This margin expansion is a positive sign for investors looking for operational leverage in the company’s business model.
Balance Sheet and Financial Position
On the balance sheet front, shareholder’s funds have grown steadily from ₹17.75 crores in 2021 to ₹23.60 crores in 2025, supported by accumulated reserves. The company’s total debt has slightly decreased from ₹31.29 crores in 2021 to ₹28.07 crores in 2025, indicating some deleveraging efforts. Long-term borrowings have reduced significantly from ₹33.73 crores in 2021 to ₹15.23 crores in 2025, while short-term borrowings increased to ₹12.84 crores in 2025, suggesting a shift in debt profile.
Net block of fixed assets has remained relatively stable, around ₹46.83 crores in 2025, reflecting consistent capital investment. Current assets have increased modestly to ₹16.32 crores in 2025, but net current assets remain negative at ₹-7.55 crores, which could be a point of concern regarding liquidity. Contingent liabilities have risen slightly but remain low relative to total assets.
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Cash Flow and Earnings Per Share
Cash flow from operating activities has improved from ₹2 crores in 2020 to ₹11 crores in 2025, reflecting better cash generation from core operations. Investing activities have consistently been negative, indicating ongoing capital expenditure, while financing activities have been net outflows in recent years, consistent with debt repayment. The company has maintained a neutral net cash inflow/outflow position over the years.
Earnings per share (EPS) have recovered from negative values in 2020 and 2021 to ₹2.18 in 2025, signalling a return to profitability on a per-share basis. Book value per share has also increased steadily from ₹25.48 in 2021 to ₹33.89 in 2025, reflecting enhanced net asset value for shareholders.
Outlook and Summary
Overall, Choksi Laborator’s historical performance reveals a company that has navigated through a difficult phase marked by losses and negative margins but has since embarked on a recovery path. The steady increase in revenues, improved operating and net margins, and strengthening balance sheet metrics suggest a turnaround in business fundamentals. However, the negative net current assets and ongoing capital expenditure warrant close monitoring. Investors should weigh these factors carefully while considering the company’s potential for sustained growth and profitability.
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