Senores Pharmaceuticals IPO - Price Band, Allotment And Listing Date, Financials, Peer Comparison: DRChoksey

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..Deven Choksey Research Report.Senores Pharmaceuticals Ltd.'s will launch its initial public offering on December 20 and the offer closes for subscription on Dec. 24. The pharma company has fixed the price band in the range of Rs 372 to Rs 391 per share.The Rs 582.11-crore IPO consists of a fresh issue of Rs 500 crore and an offer for sale of Rs 82.11 crore.The allotment for Senores Pharma IPO is expected to be finalized on December 26, 2024.The shares will be listed on the exchanges on Dec. 30..Objects of the OfferInvestment in subsidiaries.Funding working capital.General corporate. .Outlook and Valuation: Senores Pharma has a presence in regulated markets, leveraging its US FDA-approved facilities and backward integration to maintain quality and cost efficiency. The company’s focus on complex generics and specialty formulations positions it as a reliable player in high-margin segments, contributing to strong return ratios like ROE of 23.6%. Additionally, the company’s expansion into critical care injectables and targeted acquisitions, such as Havix and RPPL, signal a growth-oriented strategy. However, the company’s small scale, with a revenue of Rs 2,145 million, limits its ability to compete with peers like Alembic and Ajanta Pharma. Despite decent profitability (PAT margin of 15.3%), Senores pharma underperforms on capital efficiency, with ROCE at 11.7%, far below leaders like Ajanta Pharma (32.2%). The company’s overreliance on regulated markets, especially the US, and a few key customers increases vulnerability to market-specific risks. Operational challenges, including dependence on a single FDA facility and high working capital needs, add to concerns. The company is valued at a steep P/E of 55.1x, the stock already factors in much of its growth potential, leaving limited upside. Considering current risks and high valuation we maintain a ‘Neutral’ rating to the IPO..Click on the attachment to read the full report:.Senores Pharmaceuticals IPO GMP Hints At Strong Listing Gain Before Launch .DISCLAIMERThis 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.

Senores Pharmaceuticals IPO - Price Band, Allotment And Listing Date, Financials, Peer Comparison: DRChoksey

The Rs 582.11-crore IPO will open for subscription on December 20 with a fixed price band in the range of Rs 372 to Rs 391 per share.

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