₹125.25
-1.5% today
· 30d +7.52%
as of 2026-09-04
Price · Daily Candles
“Zim Laboratories' Profit Plunge: Returns Surge Amidst Declining Fundamentals”
Zim Laboratories (ZIMLAB) sees its stock price jump +64.78% over six months, despite a significant annual net profit decline of -52.01% as of March 2026. The company currently trades at a P/E of 99.33 and a P/B of 2.14, with a market cap of ₹621 Cr. Quarterly revenues also dipped -3.18% YoY to ₹105.0 Cr.
BULL CASE
+The stock has seen a strong price appreciation, with 3-month returns at +62.11% and 6-month returns at +64.78%.
+Technical indicators show strength, with a 'STRONG' rating for Technicals (score 70) and 'LOW' risk (score 90).
+Promoter shareholding slightly increased by 0.05% QoQ as of March 2026, reaching 30.35%.
BEAR CASE
−Annual net profit plummeted by -52.01% YoY for the period ending March 2026, only generating ₹6.0 Cr.
−Quarterly net profit for March 2026 declined -23.43% YoY to ₹4.0 Cr, despite total revenue of ₹105.0 Cr.
−The company's P/E ratio is 99.33, while its ROCE is low at 5.0%, indicating a stretched valuation.
−ML predictions show a weak outlook for free cash flow (FCF), with the fcf_1y_stable_7y rank at 0.031.
₹ Latest Earnings · Q ending 2026-06-30
REVENUE
₹94 Cr
+31.25% YoY
NET PROFIT
₹-4 Cr
OPM
3.62%
-4.21pp YoY
EPS
₹-0.75
PE 99.33
Intrinsic value · DCF: N/A — ML model predicts severe Δ FCF compression (h1=-3.8%, h2=+3.5%, h3=-1.9% of mktcap), driving projected FCF negative by year 3 despite healthy current FCF. Treating as forecast outlier rather than reporting a misleading ₹0 valuation. Use the Strategy Fit and ML sections instead.
◇ Sector Position
ZIMLAB trades at a significantly higher P/E of 99.33 and a lower ROCE of 5.0% compared to peers like LUPIN (P/E 21.28, ROCE 27.37%) and CIPLA (P/E 29.85, ROCE 25.09%).
PEERPEROCE %
ZIMLAB99.335.0
+ 2 more peers — sign in to view
ML Forward Growth Predictions 🔒
58
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
STRONG
100
Valuation
STRETCHED
20
Growth
DECLINING
28
Profitability
AVERAGE
30
Technicals
STRONG
77
Risk
LOW
90
Key Stats
TTM PE
99.33
P/B
2.14
52W HIGH
₹136.9
OFF HIGH
-8.51%
MKT CAP
₹674 Cr
◉ Active Signals
MACDBullish0.607
RSI(14)Neutral55.0
⧉ Strategy Fit 🔒