COHANCECohance Lifesciences Limited Forensic Risk Analysis

Pharmaceuticals
Risk ClassModerate Deterioration
Market Cap₹11,668 Cr
Primary DriverEarnings Quality
Flagium AI Risk Score
Moderate stress emerging. While not critical, underlying pressure is building.
40 / 100
+5 QoQ
Deteriorating
Sentinel Insight

Some early signs of pressure are visible. Weakness is detected in profitability and earnings quality. This suggests a building risk profile. Risk is increasing at a faster pace.

93.9th %ile (Sector)Accel: +5 Qtrs
Updated2026-06-02
Market View
₹428.9▼0.12%
PeriodQ4 FY26

Score Waterfall
Absolute contribution points of each forensic pillar to the final risk score. Derived from: Sector Baseline + Active Penalties - Mitigation Buffers.

Earnings Quality
+15.0 pts
Balance Sheet Stress
+14.8 pts
Growth Sustainability
+10.0 pts
Final Composite Risk40 / 100

Investment Risk Thesis

Historical Trend

Current risk score has risen from 0 → 40 over 12 quarters.

Expected Direction
🚨 Escalate
Primary Deterioration Drivers
  • Margin Compression
  • Inventory Stress
  • Working Capital Expansion
What to Watch Next Quarter
  • Working capital efficiency
  • Debt growth
  • Operating profit margins

Active Risk Objects (5)

CriticalHigh
Working Capital Expansion
💧 Liquidity & CoverageAnnualActive for 5 Years
More Detail
Impact Weight10/15
MomentumPersistent
Last SignalQ4 FY2026
Working capital expansion detected: Receivable days increased by 60.0%.

"Early signs of working capital expansion. Receivable or inventory days are creeping up."

Operating Leverage Stress
📊 Earnings QualityAnnualActive for 4 Years
More Detail
Impact Weight10/15
MomentumPersistent
Last SignalQ4 FY2026
Expenses are consistently growing faster than revenues, creating operational pressure.

"The balance sheet is heavily over-leveraged. Interest payments are consuming most of the profit."

Profit Collapse
📊 Earnings QualityQuarterlyActive for 4 Qtrs
More Detail
Impact Weight8/15
MomentumPersistent
Last SignalQ4 FY2026
COHANCE: Net Profit collapsed by 78.5% from FY2025 Q4 to FY2026 Q4.

"Earnings quality is under severe pressure. High accruals suggest potential revenue overstatement."

Margin Compression
📊 Earnings QualityAnnualActive for 4 Years
More Detail
Impact Weight15/15
MomentumPersistent
Last SignalQ4 FY2026
Operating margin declined by 6.6 bps YoY for two consecutive quarters.

"Margins are in freefall. Operating costs are growing significantly faster than revenue."

Inventory Stress
📊 Earnings QualityAnnualActive for 1 Years
More Detail
Impact Weight15/15
MomentumAccelerating
Last SignalQ4 FY2026
Inventory growth (237.5%) significantly outpaced revenue growth (49.6%).

"Stock is piling up in the warehouse. Inventory turnover is slowing down dangerously."

Risk Trajectory
Historical 12-quarter risk trend (Q-11 to Q0) followed by a 2-quarter predictive funnel (Q+1, Q+2).
Loading Chart
Resilience Matrix
Diagnostic benchmarking comparing structural sensitivity and risk buffers against sector medians.
MetricValuevs SectorSignal
Volatility (σ)6.367.70✅ RESILIENT
Sensitivity (ε_s)11.00✅ RESILIENT
Escalation Prob.5%5%✅ NEUTRAL
Safety Buffer+26.0+47.0📈 CRITICAL
Forensic Benchmark Context: Pharmaceuticals (n=99 peers)

Correlation Analysis
Visualizing the relationship between stock price movement and structural risk objects.

Loading Chart
Share Price
Risk Score (0-100)
Market Performance
₹428.9(-0.12%)
1M Divergence-13.51%
1 Week-1.38%
1 Month-11.25%
6 Months-21.89%
1 Year-58.05%
2 Year-30.52%
3 Year-10.21%
Sector Average (1M)+2.27%
Sentinel Forensic Assessment
ALGORITHMIC RISK PROFILE • NON-ADVISORY

The risk profile is Moderate Stress and currently deteriorating. Recent structural triggers in earnings quality suggest a building pressure on the underlying framework. Material forensic traces are visible in operational margins and profitability metrics, indicating a progressive erosion of structural stability. Strategic vigilance is advised as structural decay is accelerating.

COHANCE • MARKET STRUCTURE

Stage 4 — Declining

The company is in a defensive phase. Sentiment and fundamentals are deteriorating under persistent downward pressure, indicating elevated risk levels.

Stage Transition Prob.0%
Trend QualityDeteriorating
Phase Progression
Phase Progression Score10%
Readiness LabelLow (Early Base Consolidation)
Probability of Advancing0%
CoinTree Momentum
Composite Z-Score+0.2775σ
Improving momentum strength
Universe Rank
A cross-sectional rank of this stock's composite momentum score compared to all other tracked equities in the universe. A rank of #1 of 1035 means it has the strongest overall price momentum in the market.
#626 of 2716
Top 23.05% in momentum strength
Timeframe Sparklines
1W-1.4%
1M-11.3%
6M-21.9%
Weinstein Indicators
150 DMA₹455.94
200 DMA₹569.95
150 DMA Slope-11.3383%Declining
Relative Strength-16.40%Lagging
Relative Turnover (RTR)2.0869
ParticipationHealthy

PEER COMPARISON

Ranked comparison against sector peers

This company shows higher risk compared to the Sector Mean (19).
AAREYDRUGSAarey Drugs & Pharmaceuticals Limited
23 Risk
Sector %ile63th
Delta-5
Active Flags20
Accel+0
Balance Sheet Stress

Watch

AARTIPHARMAarti Pharmalabs Limited
35 Risk
Sector %ile81th
Delta0
Active Flags18
Accel+0
Earnings Quality

Watch

COHANCECohance Lifesciences Limited
40 Risk
Sector %ile94th
Delta+5
Active Flags5
Accel+5
Earnings Quality

Moderate Deterioration

* Peer comparison is based on risk signals, not valuation or returns.

Risk Profiles

Solvency
10100th %ile
VS Sector Median (8.5)
Governance
10100th %ile
VS Sector Median (8.5)
Earnings Quality
00th %ile
VS Sector Median (8.5)
Balance Sheet Stress
2.625.8th %ile
VS Sector Median (8.5)
Competitive Position
10100th %ile
VS Sector Median (8.5)
Growth Sustainability
00th %ile
VS Sector Median (8.5)

Deterioration Timeline

2026

Operating Leverage Stress

2026

Margin Compression

2026

Inventory Stress

2026

Working Capital Expansion

2026

Margin Compression

2026

Operating Leverage Stress

2026

Margin Compression

2026

Operating Leverage Stress

2026

Margin Compression

2026

Operating Leverage Stress

2025

Working Capital Expansion

2025

Working Capital Expansion

2024

Working Capital Expansion

2024

Working Capital Expansion

Key Financials (INR Cr)

PeriodRevenueNet ProfitOCFDebt
FY20262,303150368170
FY20251,25626528878
FY20241,11330035839
FY20231,38741145169