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LACTOSE (INDIA) LTD. (LACTOSE) Fair Value & Analysis

Healthcare · IN · Market cap ₹1.3B

LI LACTOSE (INDIA) LTD. LACTOSE · BSE
Price₹100.00
Fair Value₹105.95
Upside+6.0%
Quality40/100
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Risks

!Expensive Growth
!Thin margins · 3.7% net margin
!Low debt · negative free cash flow
!Mixed vs. peers (7/12)
Expensive Growth
Thin margins · 3.7% net margin
Low debt · negative free cash flow
Mixed vs. peers (7/12)
Narrow moat 41/100
Evidence: Medium Range ₹79.40 – ₹132.44 Share as image

Fair value as of: Aug 21, 2026

From 15 valuation models · updated 2 days ago

Below-average quality, currently priced close to our fair value.

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What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from ₹79.40 (bear) to ₹132.44 (bull), base ₹105.95. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 40/100 (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 ₹105.95 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

60‑month range ₹23.60 – ₹235.75 · fair‑value band ₹79.40 – ₹132.44 · the ₹100.00 price screens below the ₹105.95 fair value. Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

LACTOSE (INDIA) LTD. (LACTOSE) currently trades at ₹100.00, while our model-based Fair Value estimate is ₹105.95, implying the stock looks roughly 6.0% fairly valued today. The Quality Score stands at 40/100 (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) LTD. generated revenue of ₹1.6B at a net margin of 3.7%. Revenue grew 64.8% year over year. It earns a return on equity of 9.8%. Net debt stands at ₹611M. Fundamentals as of Aug 21, 2026

Our scenario range runs from ₹79.40 (bear case) to ₹132.44 (bull case); at ₹100.00, 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 32% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at 6%, LACTOSE 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 ₹57.77 ₹81.42 ₹101.83 72
Growth-Adj P/E ₹122.35 ₹174.79 ₹227.23 68
P/E Multiple ₹79.46 ₹105.95 ₹132.44 63
All 15 models by family
DCF Models
Owner Earnings ₹10.00 ₹36.63 31
Earnings-Based
Graham-Dodd ₹32.75 ₹228.38 ₹320.50 54
Lynch FV ₹96.95 ₹138.51 ₹180.06 50
PEG = 1.0 ₹96.95 ₹138.51 ₹180.06 46
EPV ₹54.52 ₹64.37 ₹72.59 59
Multiples
P/E Multiple ₹79.46 ₹105.95 ₹132.44 63
P/S Multiple ₹61.40 ₹81.87 ₹102.34 58
P/B Multiple ₹61.40 ₹81.87 ₹102.34 55
EV/EBIT ₹110.22 ₹152.87 ₹195.53 53
EV/EBITDA ₹135.53 ₹186.62 ₹237.71 54
EV/Revenue ₹73.59 ₹112.73 ₹151.87 43
Asset-Based
NCAV (Graham) ₹25.73 ₹34.48 ₹51.47 50
Economic Profit
Residual Income ₹41.79 ₹44.84 ₹50.38 61
ROIC Compounder ₹57.77 ₹81.42 ₹101.83 72
Growth Earnings
Growth-Adj P/E ₹122.35 ₹174.79 ₹227.23 68

Widest divergence: Growth Earnings (₹174.79) versus DCF Models (₹10.00). Highest evidence: ROIC Compounder (72).

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Key figures & financial health

Revenue (TTM) ₹1.6B
Revenue growth (YoY) +64.8%
Net margin 3.7%
Return on equity 9.8%
Free cash flow −₹49.3M FY2025
P/E ratio 21.4
More key figures
Operating margin 7.7%
EPS (TTM) ₹4.68
EPS growth (YoY) +191%
Net debt ₹611M FY2025

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 39 · Market factors (momentum, volatility) 42

Profitability 42
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 15
Earnings quality: real cash, not paper profit
Fin. Strength 35
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 53
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 37
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 engages in the manufacture and trading of pharmaceutical products in India. The company is involved in the production of drugs, medicines, chemicals, foods, etc. It offers lactose monohydrate; dry granulated, film, and lacquer coated tablets; and pharmaceutical products in solid dose forms.

Full company description

Lactose (India) Limited engages in the manufacture and trading of pharmaceutical products in India. The company is involved in the production of drugs, medicines, chemicals, foods, etc. It offers lactose monohydrate; dry granulated, film, and lacquer coated tablets; and pharmaceutical products in solid dose forms. In addition, the company 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. It also exports its products. The company was incorporated in 1991 and is headquartered in Mumbai, India.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

LACTOSE (INDIA) LTD. reported revenue of ₹1.6B in FY2025 versus ₹459M in FY2021, a compound +37.3%/yr. Reported net income was ₹60.6M in FY2025, compounding +25.4%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
₹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 (9Y) 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.
+18.4%
Revenue +37.3%/yr
FY21 ₹459M
FY22 ₹658M
FY23 ₹1.1B
FY24 ₹1.2B
FY25 ₹1.6B
Net income +25.4%/yr
FY21 ₹24.5M
FY22 ₹12.1M
FY23 ₹67.9M
FY24 ₹51.6M
FY25 ₹60.6M

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Cite: Fair Value Calculator (2026). "LACTOSE (INDIA) LTD. Fair Value". https://www.fairvalue-calculator.com/stock/LACTOSE

Peer Group

Drug Manufacturers - Specialty & Generic · 639 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 40 · Bottom 25%
Fair Value upside +6% · Above median
Return on equity (TTM) 10% · Above median
Return on assets 5% · Above median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 8% · Below median
Revenue growth 65% · Top 25%
Debt / equity 0.35× · Higher than 75% of peers

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (TTM) 21.4× · Cheaper than median
P/B 2.02× · Pricier than median
P/S (TTM) 0.80× · Cheaper than median
EV/EBITDA 8.3× · Cheaper than median

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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE41 · sector 3
FUTURE100 · sector 20
PAST39 · sector 22
HEALTH82 · sector 97
DIVIDEND0 · sector 30

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

Similar stocks

10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

Stock Price Fair Value vs Fair Value
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,944 ₹989.50 -49%
Divi's Laboratories Limited DIVISLAB ₹8,525 ₹1,228 -86%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,915 ₹1,163 -76%
PharmaEssentia Corporation 6446 1,440 TWD 233.93 TWD -84%
Cipla Limited CIPLA ₹1,463 ₹1,001 -32%
Zydus Lifesciences Limited ZYDUSLIFE ₹1,167 ₹703.32 -40%
Lupin Limited LUPIN ₹2,281 ₹2,477 +9%
Mankind Pharma Limited MANKIND ₹2,433 ₹983.11 -60%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,200 ₹874.79 -27%
Laurus Labs Limited LAURUSLABS ₹1,823 ₹344.84 -81%

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Frequently asked questions

Is LACTOSE (INDIA) LTD. (LACTOSE) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of ₹105.95 versus a price of ₹100.00, about +6% (fairly valued).
What is the fair value of LACTOSE?
Our model-based fair value for LACTOSE (INDIA) LTD. is ₹105.95 (as of Aug 21, 2026), built from audited fundamentals. The current price: ₹100.00.
What is the quality score of LACTOSE?
LACTOSE (INDIA) LTD. has a Quality Score of 40/100. 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) LTD. (LACTOSE)?
LACTOSE (INDIA) LTD. reported trailing-twelve-month revenue of about ₹1.6B (latest available figure, as of Aug 21, 2026).
What is the net profit margin of LACTOSE?
The net profit margin of LACTOSE (INDIA) LTD. is about 3.7%, meaning it keeps roughly 3.7% of revenue as net income. 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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