NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
DRChoksey Report
Sai Parenterals Ltd. will launched its initial public offering (IPO) today, March 24 and the offer closes for subscription on March 27.
A pharma company that makes medicines and also provides services to other pharma companies has fixed the price band in the range of Rs 372 to Rs 392 per equity share.
Sai Parenterals is a book-build issue of Rs 408.79-crore. The issue is a combination of fresh issue of 0.73 crore shares aggregating to Rs 285.00 crores and offer for sale of 0.32 crore shares aggregating to Rs 123.79 crores.
Investors can place bids starting from a minimum of 38 shares and in multiples thereafter, meaning a minimum amount of investment required by an individual investor (retail) is Rs 14,896 based on upper price.
Arihant Capital Markets is the book running lead manager of the issue while Bigshare Services Pvt Ltd. is the registrar to the offer.
Sai Life Sciences, Innova Captab, Senores Pharma and Gland Pharma are among Sai Parenterals' peers in the sector.
Shares of the company are tentatively scheduled to be listed on the BSE and NSE on April 02.
Valuation:
The company has a strong growth trajectory in the past, with revenue compounding at ~30% CAGR over FY23–FY25. However, the structural shift underway requires closer attention than the backward-looking growth rate. Post full-year consolidation of Noumed, we expect consolidated revenue to scale from Rs 163-crore in FY25 to approximately Rs 850-crore by FY28, driven predominantly by the Noumed acquisition rather than organic growth alone.
Working capital remains stretched, with receivables at 282 days (government tender exposure) and inventory at 111 days in H1 FY26, pressuring the cash cycle. However, improvement is expected as Noumed's faster-turnaround business gains share in the revenue mix.
At the cap price of Rs 392, the company trades at ~120x FY25 EPS on a post-issue fully diluted equity base. Based on the brokerage's FY28 estimate, the implied multiple moderates to ~30x. This compression is underpinned by the anticipated earnings scale-up from the ramp-up of an export-oriented CDMO platform and visibility from multi-year contracts, contingent on the successful integration and execution of the Noumed business.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
