Rubicon · Market & peers
Valuation & Peer BenchmarkAbout this pageA premium multiple is only rational if the business out-grows and out-earns the pack. Here we put Rubicon next to the seven large Indian pharma names on the same public screen, and map the growth-versus-returns trade-off the market is pricing.
The market pays Rubicon a P/E of 78.32 against an industry 31.6 — a 148% premium. This page tests whether the growth and returns justify it.
Why the premium is earnedWhy the premium is earnedA high P/E is the market's bet on future compounding. Rubicon's 3-year profit CAGR (155%) is ~7× the peer median (21%), and its ROCE (28%) sits at the top of the cohort — so the premium reflects growth and capital efficiency, not just scarcity.
P/E premium vs industry
+148%
78.32 vs 31.6 industry
Profit growth vs peers
7×
155% vs 21.14% median (3Y)
ROCE rank
Top 2 of 8
28.35% — peer median 15.19%
Net debt
₹311 cr
D/E 0.24 — lowest-levered grower
Growth versus returnsGrowth versus returnsEach bubble is a company: horizontal = 3-year profit CAGR, vertical = ROCE, size = market cap. The top-right quadrant is the prize — high growth and high returns. Rubicon (solid) sits far to the right of every large-cap peer while still earning a top-tier ROCE.
Profit CAGR × ROCE × scaleHow this worksRubicon is the smallest bubble but the furthest right — it is growing profit far faster than incumbents many times its size, while keeping ROCE near the top of the chart. That combination is what a 78× multiple is paying for.
Bubble size = market cap
The bull case, in three lines
- Fastest grower in the room3-year profit CAGR of 155.01% and sales CAGR of 64.57% — multiples of every peer on this screen.
- Returns without the leverage28.35% ROCE and 26.97% ROE on just ₹311 cr of debt — capital efficiency, not balance-sheet risk, drives the returns.
- Runway, not maturityA ₹19k-cr company beside ₹1-4 lakh-cr incumbents — the specialty/drug-device pipeline implies the compounding has years to run.
Peer comparison tablePeer comparison tableThe full public screen (as of 09-Jun-2026). Rubicon's row is highlighted. Read the right-hand growth columns alongside the left-hand valuation columns: the multiple is rich, but so is the growth that has to be discounted into it.
| Company | MCap ₹cr | P/E | EV/EBITDA | ROCE % | ROE % | Sales 3Y % | Profit 3Y % | Debt ₹cr |
|---|---|---|---|---|---|---|---|---|
| Sun Pharma | 4,26,889 | 34.2 | 21.3 | 20.5 | 16.0 | 10 | 13 | 4,627 |
| Divi's Laboratories | 1,79,399 | 68.4 | 44.6 | 22.0 | 16.5 | 11 | 13 | 7 |
| Torrent Pharma | 1,51,328 | 69.0 | 37.4 | 15.2 | 27.4 | 13 | 22 | 15,026 |
| Zydus Lifesciences | 1,11,265 | 20.5 | 13.6 | 21.1 | 21.3 | 16 | 32 | 12,496 |
| Cipla | 1,11,172 | 29.2 | 17.3 | 15.5 | 11.6 | 7 | 10 | 614 |
| Dr Reddy's Labs | 1,05,865 | 25.2 | 14.1 | 13.6 | 11.8 | 11 | -3 | 7,734 |
| Lupin | 1,03,614 | 18.0 | 11.3 | 30.3 | 29.1 | 19 | 141 | 6,616 |
| Rubicon Research | 19,326 | 78.3 | 47.3 | 28.4 | 27.0 | 65 | 155 | 311 |
| Median · 156 co. | 31.7 | 17.3 | 15.2 | 12.5 | 11 | 21 |
What the premium demands. At 78× earnings and 47× EV/EBITDA, the valuation already discounts years of >30% compounding. The watch-items are the ones management itself flags: gross-margin recovery as Pithampur in-sources, and converting the 24 under-review filings into launches. The PEG of 0.51 suggests the growth, if sustained, still covers the multiple.
Source: public peer screen and Rubicon disclosures as of 09-Jun-2026. Ratios are point-in-time and not investment advice.