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Lactose (India) Limited (524202) Fair Value & Analysis

Healthcare · IN · Market cap ₹178M

LI Lactose (India) Limited 524202 · BSE
Price₹99.65
Fair Value₹130.91
Upside+31.4%
Quality38/100
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Expensive Growth
Loss-making · -6.7% net margin
Low debt · negative free cash flow
Trails peers (2/11)
Narrow moat 19/100
Evidence: Medium Range ₹98.11 – ₹163.63 Share as image

Fair value as of: Aug 13, 2026

From 15 valuation models · updated 5 days ago

Below-average quality, screening 31% undervalued on our models.

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What matters now

  • The large discount to fair value meets weak quality (38/100). That raises the risk this is a value trap rather than a bargain.
  • Our model range runs from ₹98.11 (bear) to ₹163.63 (bull), base ₹130.91. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 38/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

₹235.75 ₹23.60 Fair Value ₹130.91 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹23.60 – ₹235.75 · fair‑value band ₹98.11 – ₹163.63 · the ₹99.65 price screens below the ₹130.91 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Lactose (India) Limited (524202) currently trades at ₹99.65, while our model-based Fair Value estimate is ₹130.91, implying the stock looks roughly 31.4% undervalued today. The Quality Score stands at 38/100 (below-average quality), in the Healthcare sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Lactose (India) Limited generated revenue of ₹346M at a net margin of -6.7%. Revenue declined 19.4% year over year. It earns a return on equity of -7.0%. Net debt stands at ₹611M. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹98.11 (bear case) to ₹163.63 (bull case); at ₹99.65, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 27% below its 52-week high and 31% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -34% fair-value upside, at 31%, 524202 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
ROIC Compounder ₹57.80 ₹72.08 ₹90.06 72
Growth-Adj P/E ₹142.14 ₹203.05 ₹263.97 68
P/E Multiple ₹98.18 ₹130.91 ₹163.63 63
All 15 models by family
DCF Models
Owner Earnings ₹6.44 ₹30.73 31
Earnings-Based
Graham-Dodd ₹40.46 ₹282.18 ₹396.00 54
Lynch FV ₹110.34 ₹157.62 ₹204.91 50
PEG = 1.0 ₹110.34 ₹157.62 ₹204.91 46
EPV ₹57.80 ₹67.36 ₹75.13 59
Multiples
P/E Multiple ₹98.18 ₹130.91 ₹163.63 63
P/S Multiple ₹75.87 ₹101.16 ₹126.44 58
P/B Multiple ₹75.87 ₹101.16 ₹126.44 55
EV/EBIT ₹136.18 ₹188.88 ₹241.58 53
EV/EBITDA ₹167.46 ₹230.58 ₹293.71 54
EV/Revenue ₹90.92 ₹139.28 ₹187.64 43
Asset-Based
NCAV (Graham) ₹31.79 ₹42.60 ₹63.59 50
Economic Profit
Residual Income ₹49.34 ₹52.01 ₹55.43 61
ROIC Compounder ₹57.80 ₹72.08 ₹90.06 72
Growth Earnings
Growth-Adj P/E ₹142.14 ₹203.05 ₹263.97 68

Widest divergence: Growth Earnings (₹203.05) versus DCF Models (₹6.44). Highest evidence: ROIC Compounder (72).

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Key figures & financial health

Revenue (TTM) ₹346M
Revenue growth (YoY) -19.4%
Net margin -6.7%
Return on equity -7.0%
Free cash flow −₹49.3M FY2026
P/E ratio 344.3 as of Jul 4, 2026
More key figures
Operating margin 4.6%
EPS (TTM) ₹0.0140
EPS growth (YoY) -70.6%
Net debt ₹611M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 38/100

Of which business quality 39 · Market factors (momentum, volatility) 48

Profitability 42
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 15
Earnings quality: real cash, not paper profit
Fin. Strength 29
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 58
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 36
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Lactose (India) Limited manufactures and trades in pharmaceutical products in India. The company offers lactose monohydrate; dry granulated, film, and lacquer coated tablets; and pharmaceutical products in liquid dose forms.

Full company description

Lactose (India) Limited manufactures and trades in pharmaceutical products in India. The company offers lactose monohydrate; dry granulated, film, and lacquer coated tablets; and pharmaceutical products in liquid dose forms. It also provides disaccharide lactulose, an active pharmaceutical ingredient that is used in the treatment of constipation, hepatitis encephalopathy, intestinal microflora, dental care, diabetes, and chronic liver disease, as well as for use as a prebiotic; and galacto-oligosaccharides, a prebiotic for use in dairy and bakery products, beverages, infant and clinical nutrition, and geriatric nutrition applications, as well as in products for children or adolescents. The company also exports its products to Russia, Kazakhstan, Belarus, Nigeria, Sri Lanka, and other countries. Lactose (India) Limited was founded in 1991 and is headquartered in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Lactose (India) Limited reported revenue of ₹1.6B in FY2026 versus ₹459M in FY2022, a compound +37.3%/yr. Reported net income was ₹60.6M in FY2026, compounding +25.4%/yr from FY2022.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹1.6B
Latest YoY
+40.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+35.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+36.1%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.1%
Revenue +37.3%/yr
FY22 ₹459M
FY23 ₹658M
FY24 ₹1.1B
FY25 ₹1.2B
FY26 ₹1.6B
Net income +25.4%/yr
FY22 ₹24.5M
FY23 ₹12.1M
FY24 ₹67.9M
FY25 ₹51.6M
FY26 ₹60.6M

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Cite: Fair Value Calculator (2026). "Lactose (India) Limited Fair Value". https://www.fairvalue-calculator.com/stock/524202

Peer Group

Health Care · 2285 stocks

How this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “Drugs - Generic” was too small, so the broader sector is used.)

Quality Score 38 · Bottom 25%
Fair Value upside +6% · Above median
Return on assets 1% · Below median
Net margin (TTM) -7% · Bottom 25%
Operating margin (TTM) 5% · Below median
Revenue growth -19% · Bottom 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.35× · Higher than 75% of peers

Valuation Multiples vs Health Care median · lower = cheaper

P/E (TTM) 344.3× · Pricier than 75% of peers
EV/EBITDA 4.0× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 42 · sector 0
FUTURE 0 · sector 21
PAST 0 · sector 13
HEALTH 82 · sector 96
DIVIDEND 0 · sector 34

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Drugs - Generic stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Indoco Remedies Limited 532612 ₹222.50 ₹96.79 -56%
Anuh Pharma Limited 506260 ₹77.18 ₹51.89 -33%
Gufic Biosciences Limited 509079 ₹421.20 ₹182.30 -57%
Medicamen Biotech Limited 531146 ₹236.75 ₹95.98 -59%
Mangalam Drugs & Organics Limited 532637 ₹27.95 ₹18.52 -34%
Coral Laboratories Limited 524506 ₹579.05 ₹779.23 +35%
Gennex Laboratories Limited 531739 ₹9.00 ₹27.82 +209%
Beryl Drugs Limited 524606 ₹23.18 ₹14.44 -38%
Novartis AG NVSN 2,742 MXN 1,964 MXN -28%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,944 ₹989.50 -49%

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Frequently asked questions

Is Lactose (India) Limited (524202) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹130.91 versus a price of ₹99.65, about +31% (undervalued).
What is the fair value of 524202?
Our model-based fair value for Lactose (India) Limited is ₹130.91 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹99.65.
What is the quality score of 524202?
Lactose (India) Limited has a Quality Score of 38/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Lactose (India) Limited (524202)?
Lactose (India) Limited reported trailing-twelve-month revenue of about ₹346M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 524202?
The net profit margin of Lactose (India) Limited is about -6.7%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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