Trading · Founded 2018 · www.enterohealthcare.com · BSE 544122 · NSE ENTERO · ISIN INE010601016
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Business
Entero Healthcare Solutions Ltd. operates as a distributor of pharmaceutical and healthcare products in India. Its core business model involves procuring a wide range of products, including medicines, surgicals, medical devices, and other healthcare consumables, directly from manufacturers. It then distributes these products to a diverse customer base, including pharmacies, hospitals, clinics, and other healthcare providers across the country. The company makes money through the margins earned on the sale of these products, leveraging its extensive distribution network, warehousing capabilities, and supply chain management expertise.
Revenue Mix
While specific revenue breakdowns are not provided, healthcare distribution companies typically segment their revenue based on:
Product Categories: Pharmaceuticals (branded generics, generics), Surgical & Medical Devices, Consumer Health Products.
Customer Types: Retail Pharmacies, Hospitals & Institutions, Clinics & Nursing Homes.
Entero is likely to have a significant portion of its revenue derived from the distribution of pharmaceuticals to retail pharmacies, given the large and fragmented nature of this market in India.
Industry
The Indian healthcare distribution industry is vast, complex, and traditionally fragmented, comprising numerous regional and local distributors alongside a few large national players. Entero Healthcare positions itself as one of the larger, organized national distributors, aiming to consolidate market share through scale, technology adoption, and a wide geographical reach. It competes with other large national distributors, smaller regional players, and direct distribution channels employed by some pharmaceutical manufacturers. The industry is characterized by low margins, high volume, and significant working capital requirements.
MOAT
Entero's competitive advantages are likely to stem from:
Scale and Network: An extensive pan-India distribution network, including warehouses, cold chain facilities, and a large sales force, enabling efficient reach to a wide customer base.
Technology Adoption: Investments in supply chain management systems, inventory optimization, and digital platforms to enhance efficiency and reduce costs.
Manufacturer Relationships: Strong, long-standing relationships with a broad portfolio of pharmaceutical and healthcare product manufacturers, ensuring a steady supply of diverse products.
Customer Relationships: A large and loyal customer base built through reliable service, timely delivery, and a comprehensive product offering.
Growth Drivers
Growing Healthcare Expenditure: Increasing healthcare spending in India driven by a rising population, higher disposable incomes, and greater health awareness.
Expansion of Healthcare Infrastructure: Growth in the number of hospitals, clinics, and pharmacies, especially in Tier 2 and Tier 3 cities.
Consolidation of Distribution: The shift from a fragmented, unorganized distribution market towards larger, more efficient national players, which Entero aims to capitalize on.
Increased Product Portfolio: Ability to add new manufacturers and product categories (e.g., specialty medicines, advanced medical devices) to its distribution network.
Digitalization in Healthcare: Leveraging technology for order management, inventory, and logistics to improve efficiency and customer experience.
Risks
Intense Competition & Pricing Pressure: The fragmented nature of the industry leads to high competition, which can put pressure on distribution margins.
Regulatory Changes: Changes in drug pricing policies, distribution licenses, or other healthcare regulations by the Indian government could impact profitability.
Working Capital Management: The business requires significant working capital to manage inventory and credit extended to customers, exposing it to interest rate and credit risks.
Supply Chain Disruptions: Reliance on timely and efficient logistics, making it vulnerable to disruptions in transportation, warehousing, or manufacturing.
Manufacturer Consolidation/Direct Sales: Large manufacturers might consolidate their distribution or increase direct sales, reducing reliance on third-party distributors.
Management & Ownership
Entero Healthcare Solutions Ltd. is promoted by individuals with significant experience in the pharmaceutical distribution sector. The company is likely to be promoter-driven, with key management personnel possessing deep domain expertise in supply chain management and healthcare logistics. Post-IPO, the ownership structure typically involves significant promoter holdings, alongside institutional investors, high net-worth individuals, and public shareholders. The quality of management is critical for navigating the complexities of the Indian distribution market.
Outlook
Entero Healthcare operates in a fundamental yet challenging segment of the Indian healthcare industry. The bull case rests on the immense underlying growth of the Indian healthcare market, the company's established pan-India network, and its potential to gain market share through efficiency and consolidation of the fragmented distribution landscape. Investments in technology and robust supply chain infrastructure can further enhance its competitive edge. The bear case highlights the inherently low-margin nature of the distribution business, intense competition, significant working capital requirements, and potential regulatory interventions that could impact profitability. While the opportunity for organized distributors is substantial, sustained success will depend on efficient operational execution, prudent financial management, and adaptability to evolving market dynamics.
Price goes above X
Price falls below X
PE goes above X
PE falls below X
| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 993 | 1034 | 1097 | 1301 | 1359 | 1339 | 1404 | 1571 | 1707 | 1910 |
| Other Income | 2 | 9 | 13 | 11 | 7 | 7 | 6 | 5 | 5 | 4 |
| Total Income | 994 | 1043 | 1110 | 1312 | 1366 | 1346 | 1410 | 1576 | 1711 | 1914 |
| Total Expenditure | 964 | 1005 | 1067 | 1258 | 1309 | 1290 | 1354 | 1509 | 1639 | 1824 |
| Operating Profit | 30 | 38 | 44 | 54 | 58 | 56 | 56 | 67 | 72 | 90 |
| Interest | 16 | 17 | 10 | 11 | 10 | 10 | 11 | 12 | 14 | 17 |
| Depreciation | 6 | 7 | 7 | 7 | 8 | 8 | 9 | 10 | 10 | 15 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -8 | 0 |
| Profit Before Tax | 8 | 14 | 27 | 35 | 39 | 37 | 36 | 45 | 40 | 58 |
| Provision for Tax | 1 | -8 | 7 | 9 | 10 | 6 | 6 | 8 | 7 | 13 |
| Profit After Tax | 7 | 21 | 21 | 26 | 29 | 31 | 30 | 37 | 34 | 45 |
| Adjustments | -0 | -0 | -0 | -2 | -4 | -6 | -2 | -5 | -6 | -17 |
| Profit After Adjustments | 7 | 21 | 20 | 24 | 25 | 26 | 28 | 32 | 28 | 28 |
| Adjusted Earnings Per Share | 4.2 | 4.8 | 4.6 | 5.4 | 5.8 | 5.9 | 6.4 | 7.3 | 6.4 | 6.4 |
| #(Fig in Cr.) | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|
| Net Sales | 1780 | 2522 | 3300 | 3922 | 5096 | 6592 |
| Other Income | 4 | 4 | 6 | 14 | 40 | 20 |
| Total Income | 1784 | 2527 | 3306 | 3937 | 5135 | 6611 |
| Total Expenditure | 1758 | 2498 | 3236 | 3810 | 4924 | 6326 |
| Operating Profit | 25 | 29 | 70 | 126 | 211 | 285 |
| Interest | 20 | 29 | 49 | 66 | 42 | 54 |
| Depreciation | 16 | 20 | 24 | 25 | 31 | 44 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | -8 |
| Profit Before Tax | -11 | -20 | -4 | 36 | 139 | 179 |
| Provision for Tax | 5 | 10 | 7 | -4 | 31 | 34 |
| Profit After Tax | -15 | -29 | -11 | 40 | 107 | 146 |
| Adjustments | -0 | -0 | -0 | -1 | -13 | -30 |
| Profit After Adjustments | -16 | -30 | -12 | 39 | 95 | 116 |
| Adjusted Earnings Per Share | -1553.7 | -77.7 | -28.1 | 9 | 21.8 | 26.5 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 30% | 26% | 0% | 0% |
| Operating Profit CAGR | 67% | 94% | 0% | 0% |
| PAT CAGR | 168% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -6% | NA% | NA% | NA% |
| ROE Average | 6% | 4% | 2% | 2% |
| ROCE Average | 9% | 7% | 5% | 5% |
| #(Fig in Cr.) | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Shareholder's Funds | 485 | 561 | 595 | 1638 | 1724 |
| Minority's Interest | 2 | 2 | 3 | 3 | 46 |
| Borrowings | 0 | 37 | 31 | 46 | 0 |
| Other Non-Current Liabilities | 57 | 63 | 54 | 37 | 73 |
| Total Current Liabilities | 289 | 462 | 624 | 602 | 845 |
| Total Liabilities | 833 | 1125 | 1307 | 2326 | 2688 |
| Fixed Assets | 189 | 262 | 268 | 289 | 559 |
| Other Non-Current Assets | 12 | 12 | 16 | 26 | 53 |
| Total Current Assets | 633 | 851 | 1023 | 2011 | 2076 |
| Total Assets | 833 | 1125 | 1307 | 2326 | 2688 |
| #(Fig in Cr.) | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 43 | 32 | 47 | 25 | 148 |
| Cash Flow from Operating Activities | -69 | -35 | -45 | -37 | -77 |
| Cash Flow from Investing Activities | -31 | -162 | -49 | -705 | 220 |
| Cash Flow from Financing Activities | 89 | 211 | 73 | 863 | -74 |
| Net Cash Inflow / Outflow | -11 | 14 | -21 | 121 | 69 |
| Closing Cash & Cash Equivalent | 32 | 47 | 25 | 148 | 229 |
| # | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|
| Earnings Per Share (Rs) | -1553.7 | -77.71 | -28.11 | 8.99 | 21.79 |
| CEPS(Rs) | 92.2 | -25.16 | 31.94 | 14.9 | 31.75 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | -3174.6 | -150.52 | -166.8 | 376.21 | 395.31 |
| Core EBITDA Margin(%) | 1.21 | 0.97 | 1.94 | 2.85 | 3.37 |
| EBIT Margin(%) | 0.52 | 0.36 | 1.37 | 2.58 | 3.54 |
| Pre Tax Margin(%) | -0.61 | -0.79 | -0.11 | 0.91 | 2.72 |
| PAT Margin (%) | -0.86 | -1.17 | -0.34 | 1.01 | 2.11 |
| Cash Profit Margin (%) | 0.05 | -0.38 | 0.4 | 1.65 | 2.71 |
| ROA(%) | -1.84 | -3.01 | -0.91 | 2.19 | 4.29 |
| ROE(%) | 0 | 0 | 0 | 5.08 | 6.4 |
| ROCE(%) | 1.47 | 1.24 | 4.99 | 7.02 | 9.16 |
| Receivable days | 49.66 | 44.63 | 49.19 | 52.59 | 51.78 |
| Inventory Days | 50.03 | 40.09 | 36.04 | 35.49 | 38.71 |
| Payable days | 21.55 | 18.67 | 21.08 | 22.51 | 24.83 |
| PER(x) | 0 | 0 | 0 | 109.53 | 52.15 |
| Price/Book(x) | 0 | 0 | 0 | 2.62 | 2.88 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.32 | 0.32 | 0.28 | 0.93 | 0.98 |
| EV/Core EBITDA(x) | 22.61 | 27.75 | 13.45 | 29.04 | 23.61 |
| Net Sales Growth(%) | 0 | 41.71 | 30.85 | 18.85 | 29.92 |
| EBIT Growth(%) | 0 | -0.36 | 393.99 | 123.56 | 78.15 |
| PAT Growth(%) | 0 | -91.74 | 62.28 | 458.42 | 169.94 |
| EPS Growth(%) | 0 | 95 | 63.83 | 131.99 | 142.37 |
| Debt/Equity(x) | 0.29 | 0.51 | 0.63 | 0.17 | 0.17 |
| Current Ratio(x) | 2.19 | 1.84 | 1.64 | 3.34 | 2.46 |
| Quick Ratio(x) | 1.35 | 1.17 | 1.09 | 2.64 | 1.68 |
| Interest Cover(x) | 0.46 | 0.32 | 0.92 | 1.54 | 4.33 |
| Total Debt/Mcap(x) | 0 | 0 | 0 | 0.06 | 0.06 |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Promoter | 52.44 | 52.44 | 52.44 | 52.44 | 52.42 | 52.42 | 52.42 | 52.42 | 52.42 |
| FII | 23.3 | 23.32 | 23.82 | 22.21 | 19.92 | 17.2 | 14.67 | 5.14 | 4.03 |
| DII | 2.28 | 2.06 | 7.73 | 8.77 | 9.64 | 10.18 | 9.65 | 16.42 | 16.62 |
| Public | 21.99 | 22.18 | 16.01 | 16.59 | 18.02 | 20.19 | 23.26 | 26.02 | 26.93 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Promoter | 2.28 | 2.28 | 2.28 | 2.28 | 2.28 | 2.28 | 2.28 | 2.28 | 2.28 |
| FII | 1.01 | 1.01 | 1.04 | 0.97 | 0.87 | 0.75 | 0.64 | 0.22 | 0.18 |
| DII | 0.1 | 0.09 | 0.34 | 0.38 | 0.42 | 0.44 | 0.42 | 0.71 | 0.72 |
| Public | 0.96 | 0.96 | 0.7 | 0.72 | 0.78 | 0.88 | 1.01 | 1.13 | 1.17 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 4.35 | 4.35 | 4.35 | 4.35 | 4.35 | 4.35 | 4.35 | 4.35 | 4.35 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | +30% | +26% | — | — |
| Operating Profit CAGR | +67% | +94% | — | — |
| PAT CAGR | +168% | — | — | — |
| Share Price CAGR | -6% | — | — | — |
| ROE Average | +6% | +4% | +2% | +2% |
| ROCE Average | +9% | +7% | +5% | +5% |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Promoter | 52.44 | 52.44 | 52.44 | 52.44 | 52.42 | 52.42 | 52.42 | 52.42 | 52.42 |
| FII | 23.3 | 23.32 | 23.82 | 22.21 | 19.92 | 17.2 | 14.67 | 5.14 | 4.03 |
| DII | 2.28 | 2.06 | 7.73 | 8.77 | 9.64 | 10.18 | 9.65 | 16.42 | 16.62 |
| Public | 47.56 | 47.56 | 47.56 | 47.56 | 47.58 | 47.58 | 47.58 | 47.58 | 47.58 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Promoter | 2.28 | 2.28 | 2.28 | 2.28 | 2.28 | 2.28 | 2.28 | 2.28 | 2.28 |
| FII | 1.01 | 1.01 | 1.04 | 0.97 | 0.87 | 0.75 | 0.64 | 0.22 | 0.18 |
| DII | 0.1 | 0.09 | 0.34 | 0.38 | 0.42 | 0.44 | 0.42 | 0.71 | 0.72 |
| Public | 2.07 | 2.07 | 2.07 | 2.07 | 2.07 | 2.07 | 2.07 | 2.07 | 2.07 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 4.35 | 4.35 | 4.35 | 4.35 | 4.35 | 4.35 | 4.35 | 4.35 | 4.35 |
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