Indegene Ltd.
Pharma · NSE
52-week range
₹414 – ₹631
From 52w high
-16.0%
RSI (14)
65.2
vs SMA 50 / 200
↑ 50 · ↑ 200
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.
- ✓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.
- ✗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.
- ·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.
- ?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?
PE
29.1
Forward PE
20.0
ROE
+13.9%
Profit margin
+11.4%
D/E
4.60
Dividend yield
+0.4%
Quality score
40/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
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.Analysis generated 11 May 2026.