Indegene Ltd.
NSE: INDGNIndegene Ltd.: A 30-second snapshot
Indegene (INDGN) is a pharma-tech services company trading at ₹530, up 10.59% over the past 3 months and now marginally above its 200-DMA (₹520.58); however the stock is still 2.35% lower on a 12-month basis and sits 15.98% below its 52-week high. The business reported Q4 FY26 revenue of ₹1,003 Cr (+33% YoY) and full-year revenue of ₹3,510 Cr, yet 5-year earnings CAGR stands at -32.3% against 5-year revenue CAGR of +32.8%, reflecting significant divergence between top-line growth and profitability. Debt-to-equity of 4.60 is the most prominent balance-sheet concern, with the debt trend classified as rising.
P/E
29.1
Forward P/E
20.0
ROE
+13.9%
Debt / Equity
4.60
Profit Margin
+11.4%
Div. Yield
+0.4%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
59/100
News
8 headlines · 3 positive · 0 negative
Buy Indegene; target of Rs 620: ICICI Securities - TradingView
TradingView
Indegene Q4 Revenue Soars 33% to ₹1,003 Cr; Full Year ₹3,510 Cr - Whalesbook
Whalesbook
Indegene Limited Reports Earnings Results for the Fourth Quarter Ended March 31, 2026 - marketscreener.com
marketscreener.com
Indegene Limited Proposes Final Dividend for the Financial Year Ended March 31, 2026 - marketscreener.com
marketscreener.com
Indegene Limited Q4 and Annual FY26 Earnings Conference Call under Regulation 30 scheduled on 30 April 2026 - scanx.trade
scanx.trade
Recent context
- ·Q4 FY26 results (reported 29 April 2026) showed revenue of ₹1,003 Cr, a 33% YoY increase, and the board proposed a final dividend for FY26 — the first newsworthy capital-return event in recent quarters.
- ·ICICI Securities published a note on 5 May 2026 with a stated price target of ₹620 and a stated action of Buy; that represents a named broker view and is cited here as a factual news event rather than an endorsement.
- ·The 3-month price recovery of +10.59% and the move back above both moving averages follows a period in which the stock was below its 200-DMA, suggesting recent results may have acted as a near-term catalyst.
Strengths
- +Revenue growth of +32.8% over 5 years, with Q4 FY26 alone reaching ₹1,003 Cr, demonstrates strong and consistent top-line expansion in a structurally growing pharma-tech services market.
- +Free cash flow was positive in 4 of available years and ROE exceeded 15% in 4 of available years, suggesting the business has historically generated returns above cost of equity in more years than not.
- +Price trades above both the 50-DMA (₹477.66) and 200-DMA (₹520.58), and RSI of 65.18 remains in neutral territory, meaning recent price recovery has not yet reached technically extended levels.
- +Forward PE of 20.03 represents a meaningful compression from trailing PE of 29.07, implying the consensus earnings estimate for the next 12 months is materially higher than the trailing period — consistent with the recent strong revenue print.
Weaknesses
- −Debt-to-equity of 4.60 is high in absolute terms and the debt trend is classified as rising; combined with 5-year earnings CAGR of -32.3%, the trajectory of debt relative to earnings capacity warrants close monitoring.
- −Earnings have contracted sharply over 5 years (-32.3% CAGR) even as revenues grew rapidly (+32.8% CAGR), reflecting a pattern of cost growth or margin erosion that has not reversed at the aggregate 5-year level.
- −Quality score of 40 ranks 4th of 6 named sector peers, below MAXHEALTH (54), SUNPHARMA (50), and APOLLOHOSP (42), indicating relatively weaker composite fundamentals within the peer group.
- −The stock is 15.98% below its 52-week high and 2.35% lower on a 12-month basis, underperforming despite strong revenue growth — the market appears to be pricing in the earnings-growth shortfall.
Open questions
- ?Does the 33% Q4 revenue growth reflect a durable change in contract mix or client concentration, and is it likely to sustain at the full-year level given the -32.3% 5-year earnings CAGR?
- ?How has debt-to-equity of 4.60 with a rising debt trend been used — primarily for acquisitions, working capital, or capex — and what is the debt-service coverage relative to operating cash flow?
- ?Given that ROE has exceeded 15% in only 4 of available years and currently sits below that threshold, does the business model support a structural reversion to higher returns, or has the competitive or cost environment shifted durably?
- ?With a quality score of 40 ranking 4th of 6 peers and a trailing PE of 29.07 above Dr. Reddy's (19.06) despite a lower ROE (13.94% vs 16.1%), what operational metrics or growth rate would justify the current premium to that peer?
Peer comparison: Pharma
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| INDGN | Indegene Ltd.You're viewing | 29.1 | +13.9% | 40 |
| Industry avg | across 5 peers | 43.5 | +16.1% | 42 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 69.5 | — | 54 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 40.6 | — | 50 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 64.6 | — | 42 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 19.1 | +16.1% | 32 |
| CIPLA | Cipla Ltd. | 23.9 | — | 30 |
Technical state
Current price
₹530.00
SMA 50
₹477.66
SMA 200
₹520.58
RSI (14)
65.2 (neutral)
From 52w high
-16.0%
1Y return
-2.4%
3M return
+10.6%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 4.60 is materially elevated relative to pharma/healthcare sector context; debt trend is classified as rising, compounding balance-sheet risk as earnings growth turned negative over the 5-year period (-32.3% 5Y earnings growth vs +32.8% 5Y revenue growth).
- medium5-year earnings CAGR of -32.3% diverges sharply from 5-year revenue CAGR of +32.8%, indicating sustained margin compression or cost-base expansion that has significantly diluted profitability over the period.
- mediumQuality score of 40 ranks 4th of 6 peers in the pharma sector, below the sector median; MAXHEALTH (54) and SUNPHARMA (50) both score notably higher.
- lowROE of 13.94% has exceeded 15% in only 4 of available years, and current ROE sits below the 15% threshold; peer Dr. Reddy's carries a higher ROE (16.1%) at a lower PE (19.06 vs 29.07).
Cross-section contradictions
- Q4 FY26 revenue grew 33% YoY to ₹1,003 Cr (full-year ₹3,510 Cr), yet 5-year earnings CAGR is -32.3%, pointing to a structural gap between top-line momentum and bottom-line conversion that the recent quarter has not yet resolved in aggregate.
- Price is 2.35% lower over 12 months and drew down 15.98% from its 52-week high, yet the stock has recovered 10.59% over the past 3 months and now trades above both the 50-DMA (₹477.66) and 200-DMA (₹520.58), suggesting the near-term price action diverges from the longer-term trend.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 11 May 2026 · rotates through NIFTY 500 every ~5 days