Pharmaceuticals & Drugs · Founded 1991 · www.lactoseindialimited.com · BSE 524202 · · ISIN INE058I01013
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Business
Lactose (India) Ltd. operates in the Pharmaceuticals & Drugs sector in India. As a pharmaceutical company, its core business involves the manufacturing, marketing, and distribution of pharmaceutical products. This typically includes active pharmaceutical ingredients (APIs), pharmaceutical formulations (finished dosage forms like tablets, capsules, liquids, and injectables), or potentially contract manufacturing services for other pharma companies. The company generates revenue by selling these products to domestic hospitals, pharmacies, institutions, and potentially to international markets. Its business model relies on developing or acquiring product formulations, obtaining regulatory approvals, manufacturing efficiently, and establishing a distribution network.
Revenue Mix
Specific segment details and revenue contributions are not publicly available without access to the company's financial reports. However, typical segments for an Indian pharmaceutical company of this nature often include:
Domestic Formulations: Sales of finished pharmaceutical products within India.
International/Export Formulations: Sales of finished products to other countries.
Active Pharmaceutical Ingredients (APIs): Manufacturing and selling bulk drug substances.
Contract Manufacturing & Development Services (CDMO): Producing medicines or drug intermediates for other pharmaceutical companies.
The exact mix would depend on the company's strategic focus and operational capabilities.
Industry
The Indian pharmaceutical industry is one of the largest globally, characterized by strong domestic demand, significant generic drug manufacturing capabilities, and a highly competitive and regulated environment. It comprises numerous players ranging from large multinational corporations to mid-sized and smaller regional companies. Lactose (India) Ltd., based on its name and common market knowledge, is likely a small to mid-sized player within this fragmented landscape. It would compete with a multitude of domestic generic manufacturers, potentially focusing on specific therapeutic areas, niche product segments, or particular geographic markets to carve out its position. Its standing relative to major established players (e.g., Sun Pharma, Cipla, Dr. Reddy's Laboratories) would be that of a smaller challenger with limited market share across broader categories.
MOAT
For a company of its likely size, a strong and durable competitive moat can be challenging to establish. Potential advantages could include:
Cost Efficiency: Ability to manufacture products at a lower cost than competitors, especially for generic drugs.
Regulatory Compliance & Quality: A consistent track record of meeting stringent quality standards and regulatory approvals (e.g., WHO-GMP, specific country approvals) can be a barrier to entry.
Niche Product Expertise: Specialization in certain therapeutic segments or complex formulations.
Customer Relationships (B2B): If primarily a contract manufacturer or API supplier, strong, long-term relationships with key clients could create switching costs.
Limited Brand Strength: For a smaller player, brand recognition is typically limited to specific products or regional markets, rather than a broad corporate brand moat.
Growth Drivers
Key factors that could drive growth for Lactose (India) Ltd. over the next 3-5 years include:
Increasing Healthcare Spending: Rising disposable incomes, growing health awareness, and expansion of healthcare infrastructure in India.
Rising Disease Burden: Increasing prevalence of both communicable and non-communicable diseases driving demand for pharmaceutical products.
New Product Launches: Successful development, regulatory approval, and commercialization of new generic formulations or APIs.
Geographic Expansion: Entry into new domestic markets or expansion of export footprint, especially in regulated markets.
Capacity Expansion/Operational Efficiency: Investment in manufacturing capabilities and streamlining operations to meet demand and improve profitability.
Contract Manufacturing Growth: Securing new contracts with larger pharmaceutical companies.
Risks
Intense Competition & Pricing Pressure: The Indian generic market is highly competitive, leading to constant pressure on product pricing and profit margins.
Regulatory Scrutiny: Strict and evolving regulations from domestic (CDSCO) and international (FDA, EMA) bodies regarding manufacturing quality, product approvals, and marketing practices. Non-compliance can lead to plant shutdowns or product recalls.
Raw Material Volatility: Dependence on external suppliers for key raw materials and APIs, leading to price fluctuations and supply chain disruptions.
R&D Success & Product Pipeline: Risk associated with the failure of R&D efforts or the inability to obtain timely regulatory approvals for new products.
Currency Fluctuations: For companies involved in exports or imports, adverse currency movements can impact profitability.
Limited Scale & Financial Resources: Smaller players may have fewer financial resources to invest in R&D, marketing, or capacity expansion compared to larger competitors.
Management & Ownership
Specific details regarding the promoters, individual management quality, and ownership structure are not publicly available without direct access to the company's annual reports or investor presentations. Typically, many Indian-listed companies have significant promoter (founding family or group) holdings, with the remaining shares held by institutional investors and the public. The management team would be responsible for strategic direction, operations, and regulatory compliance.
Outlook
Lactose (India) Ltd. operates within a dynamic and growing pharmaceutical market in India, offering potential for expansion fueled by demographic trends and increasing healthcare needs. The company's future trajectory will largely depend on its ability to navigate the highly competitive landscape, maintain stringent quality control, secure regulatory approvals for new products or markets, and manage input costs effectively. A robust product pipeline, efficient manufacturing, and strategic market positioning (e.g., focusing on niche therapeutic areas or expanding export footprints) could support growth. Conversely, intense pricing pressure, failure to adhere to regulatory standards, or an inability to scale operations could pose significant challenges. The outlook is cautiously optimistic, acknowledging the inherent growth potential of the sector while emphasizing the execution risks and competitive pressures faced by smaller players.
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| #(Fig in Cr.) | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 29 | 29 | 30 | 29 | 28 | 40 | 41 | 37 | 46 | 47 |
| Other Income | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 1 | 0 | 1 |
| Total Income | 30 | 30 | 31 | 29 | 28 | 40 | 42 | 37 | 46 | 48 |
| Total Expenditure | 23 | 24 | 25 | 26 | 24 | 35 | 36 | 34 | 41 | 41 |
| Operating Profit | 6 | 6 | 5 | 4 | 4 | 5 | 6 | 4 | 5 | 7 |
| Interest | 1 | 1 | 1 | 2 | 2 | 1 | 1 | 1 | 1 | 2 |
| Depreciation | 2 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 2 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 4 | 3 | 3 | 1 | 1 | 2 | 3 | 1 | 2 | 3 |
| Provision for Tax | 1 | 1 | 1 | 0 | -0 | 1 | 1 | 0 | 0 | 1 |
| Profit After Tax | 2 | 2 | 2 | 0 | 1 | 1 | 2 | 1 | 2 | 2 |
| Adjustments | 0 | 0 | 0 | -0 | -0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 2 | 2 | 2 | 0 | 1 | 1 | 2 | 1 | 2 | 2 |
| Adjusted Earnings Per Share | 1.9 | 1.8 | 1.6 | 0.2 | 0.5 | 1.2 | 1.7 | 0.4 | 1.5 | 1.9 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 24 | 34 | 36 | 31 | 41 | 40 | 35 | 46 | 66 | 114 | 116 | 171 |
| Other Income | 0 | 1 | 1 | 1 | 0 | 0 | 0 | 1 | 1 | 1 | 2 | 2 |
| Total Income | 24 | 36 | 37 | 32 | 41 | 40 | 35 | 47 | 67 | 115 | 118 | 173 |
| Total Expenditure | 19 | 24 | 24 | 25 | 31 | 31 | 29 | 34 | 54 | 95 | 100 | 152 |
| Operating Profit | 5 | 12 | 12 | 6 | 10 | 10 | 7 | 13 | 12 | 20 | 18 | 22 |
| Interest | 3 | 4 | 4 | 5 | 5 | 6 | 5 | 5 | 6 | 5 | 6 | 5 |
| Depreciation | 2 | 3 | 3 | 4 | 4 | 4 | 4 | 5 | 5 | 5 | 5 | 6 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 1 | 4 | 4 | -3 | 1 | 0 | -3 | 3 | 1 | 10 | 7 | 9 |
| Provision for Tax | 0 | 1 | 2 | -1 | 0 | 0 | -1 | 1 | 0 | 3 | 2 | 2 |
| Profit After Tax | 0 | 3 | 3 | -1 | 1 | 0 | -2 | 2 | 1 | 7 | 5 | 7 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 0 | 3 | 3 | -1 | 1 | 0 | -2 | 2 | 1 | 7 | 5 | 7 |
| Adjusted Earnings Per Share | 0.6 | 3.2 | 2.9 | -1.3 | 0.7 | 0.1 | -2.2 | 1.9 | 1 | 5.4 | 4.1 | 5.5 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 2% | 36% | 24% | 17% |
| Operating Profit CAGR | -10% | 11% | 12% | 14% |
| PAT CAGR | -29% | 36% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -13% | 18% | 23% | 3% |
| ROE Average | 10% | 10% | 6% | 5% |
| ROCE Average | 13% | 13% | 11% | 10% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 16 | 20 | 27 | 32 | 34 | 34 | 35 | 39 | 41 | 47 | 59 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 29 | 23 | 20 | 34 | 32 | 34 | 39 | 34 | 33 | 24 | 26 |
| Other Non-Current Liabilities | 15 | 14 | 11 | 4 | 4 | 4 | 2 | 2 | 2 | 4 | 4 |
| Total Current Liabilities | 20 | 26 | 27 | 13 | 12 | 11 | 12 | 15 | 26 | 25 | 45 |
| Total Liabilities | 80 | 83 | 85 | 83 | 82 | 84 | 88 | 90 | 101 | 101 | 133 |
| Fixed Assets | 62 | 61 | 62 | 62 | 60 | 62 | 59 | 59 | 56 | 55 | 52 |
| Other Non-Current Assets | 5 | 5 | 5 | 4 | 4 | 2 | 9 | 8 | 8 | 11 | 24 |
| Total Current Assets | 13 | 17 | 17 | 17 | 18 | 20 | 20 | 23 | 37 | 35 | 57 |
| Total Assets | 80 | 83 | 85 | 83 | 82 | 84 | 88 | 90 | 101 | 101 | 133 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 1 | 0 | 0 | 0 | 3 | 1 | 2 | 2 | 2 | 1 | 2 |
| Cash Flow from Operating Activities | 13 | 1 | 8 | 0 | 5 | 7 | 2 | 8 | 8 | 9 | -0 |
| Cash Flow from Investing Activities | -23 | 3 | -5 | -2 | -2 | -3 | -6 | -1 | -1 | -2 | -16 |
| Cash Flow from Financing Activities | 10 | -5 | -3 | 4 | -5 | -4 | 5 | -8 | -8 | -6 | 19 |
| Net Cash Inflow / Outflow | -1 | -0 | -0 | 3 | -2 | 1 | 1 | -0 | -1 | 1 | 3 |
| Closing Cash & Cash Equivalent | 0 | 0 | 0 | 3 | 1 | 2 | 2 | 2 | 1 | 2 | 4 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 0.59 | 3.17 | 2.88 | -1.32 | 0.71 | 0.07 | -2.17 | 1.95 | 0.96 | 5.39 | 4.1 |
| CEPS(Rs) | 2.9 | 6.95 | 6.4 | 2.25 | 4.24 | 3.9 | 1.64 | 5.57 | 4.68 | 9.54 | 8.38 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 18.87 | 22.45 | 27.63 | 31.05 | 33.61 | 33.65 | 30.15 | 31.21 | 32.22 | 37.41 | 41.48 |
| Core EBITDA Margin(%) | 21.47 | 29.62 | 31.79 | 18.04 | 23.66 | 23.14 | 17.8 | 26.69 | 17.29 | 16.67 | 14.49 |
| EBIT Margin(%) | 14.73 | 23.64 | 24.67 | 8.63 | 15.83 | 14.12 | 6.23 | 18.03 | 11.27 | 13.1 | 11.19 |
| Pre Tax Margin(%) | 3.6 | 11.06 | 12.21 | -8.91 | 2.65 | 0.25 | -9.35 | 6.89 | 2.23 | 8.49 | 5.94 |
| PAT Margin (%) | 2.09 | 7.98 | 7.78 | -4.27 | 1.77 | 0.18 | -7.09 | 5.34 | 1.84 | 5.96 | 4.44 |
| Cash Profit Margin (%) | 10.24 | 17.5 | 17.29 | 7.27 | 10.65 | 9.93 | 5.38 | 15.26 | 8.96 | 10.54 | 9.07 |
| ROA(%) | 0.71 | 3.44 | 3.3 | -1.59 | 0.88 | 0.09 | -2.88 | 2.75 | 1.26 | 6.72 | 4.41 |
| ROE(%) | 3.25 | 15.69 | 11.95 | -4.59 | 2.2 | 0.21 | -7.21 | 6.65 | 3.03 | 15.49 | 10.4 |
| ROCE(%) | 7.55 | 14.75 | 14.78 | 4.08 | 9.13 | 7.84 | 2.81 | 10.21 | 9.27 | 18.18 | 13.01 |
| Receivable days | 99.48 | 75.05 | 91.6 | 83.85 | 55.08 | 63.14 | 70 | 70.62 | 66.13 | 44.69 | 58.07 |
| Inventory Days | 29.45 | 42.76 | 64.64 | 79.8 | 68.5 | 77.56 | 89.94 | 61.34 | 82.93 | 63.41 | 64.83 |
| Payable days | 396.97 | 288.96 | 487.58 | 428.17 | 305.66 | 288.89 | 253.97 | 165.11 | 172.65 | 95.77 | 67.48 |
| PER(x) | 43.4 | 23.34 | 36.54 | 0 | 48.39 | 237.62 | 0 | 30.79 | 45.81 | 25.87 | 21.63 |
| Price/Book(x) | 1.36 | 3.3 | 3.8 | 3.27 | 1.02 | 0.5 | 0.89 | 1.92 | 1.37 | 3.73 | 2.14 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 2.54 | 2.97 | 3.82 | 4.42 | 1.74 | 1.36 | 2.12 | 2.51 | 1.41 | 1.86 | 1.4 |
| EV/Core EBITDA(x) | 11.03 | 8.79 | 11.13 | 21.88 | 7.03 | 5.69 | 11.33 | 8.97 | 7.67 | 10.52 | 8.85 |
| Net Sales Growth(%) | 6.52 | 45.41 | 3.49 | -12.77 | 30.56 | -1.38 | -12.7 | 31.39 | 43.23 | 73.09 | 2.2 |
| EBIT Growth(%) | 210.13 | 136.2 | 6.4 | -69.57 | 139.19 | -12 | -61.5 | 280.34 | -10.5 | 101.24 | -12.71 |
| PAT Growth(%) | 1806.5 | 461.01 | -0.65 | -147.74 | 154.18 | -90 | -3540.97 | 198.94 | -50.7 | 461.77 | -23.95 |
| EPS Growth(%) | 1708.99 | 434.36 | -9.28 | -146.03 | 153.38 | -90 | -3163.95 | 189.89 | -50.7 | 461.75 | -23.95 |
| Debt/Equity(x) | 2.45 | 1.88 | 1.31 | 1.22 | 1.07 | 1.14 | 1.34 | 1.06 | 0.95 | 0.81 | 1.08 |
| Current Ratio(x) | 0.63 | 0.66 | 0.64 | 1.34 | 1.46 | 1.74 | 1.69 | 1.53 | 1.41 | 1.4 | 1.28 |
| Quick Ratio(x) | 0.53 | 0.42 | 0.4 | 0.78 | 0.79 | 0.96 | 0.98 | 1.05 | 0.55 | 0.73 | 0.73 |
| Interest Cover(x) | 1.32 | 1.88 | 1.98 | 0.49 | 1.2 | 1.02 | 0.4 | 1.62 | 1.25 | 2.84 | 2.13 |
| Total Debt/Mcap(x) | 1.79 | 0.57 | 0.34 | 0.37 | 1.05 | 2.29 | 1.51 | 0.55 | 0.69 | 0.22 | 0.5 |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 53.65 | 53.65 | 53.65 | 53.65 | 53.65 | 53.65 | 53.65 | 53.65 | 53.65 | 53.65 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 |
| Public | 45.74 | 45.74 | 45.74 | 45.74 | 45.74 | 45.74 | 45.74 | 45.74 | 45.74 | 45.74 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 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 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Public | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | +2% | +36% | +24% | +17% |
| Operating Profit CAGR | -10% | +11% | +12% | +14% |
| PAT CAGR | -29% | +36% | — | — |
| Share Price CAGR | -13% | +18% | +23% | +3% |
| ROE Average | +10% | +10% | +6% | +5% |
| ROCE Average | +13% | +13% | +11% | +10% |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 53.65 | 53.65 | 53.65 | 53.65 | 53.65 | 53.65 | 53.65 | 53.65 | 53.65 | 53.65 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 | 0.62 |
| Public | 45.74 | 45.74 | 45.74 | 45.74 | 45.74 | 45.74 | 45.74 | 45.74 | 45.74 | 45.74 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 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 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Public | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 | 0.58 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 |
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