Achyut Healthcare Limited IPO

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(i) The Company was incorporated as a govt company, incorporated on January 11, 1996. The company is private unlisted company and is classified as a company limited by shares with a business in Pharmaceutical Industry. In the year 2015, company entered into the business of trading of Pharmaceutical products providing customized tailor made solutions to its clients and customers.

(ii) The company is registered in Ahmedabad (Gujarat) Registrar Office and the company operations are active. Presently, company is into the trading business in both domestic as well as International markets in the countries namely UAE, Kenya and Nigeria.

(iii) The company is currently trading around 6 to 7 products based on the customers’ requirements and customisations both to domestic and international borders with each product being traded having its own strengths and significant key areas. Owing to the consistent efforts of the company, the annual top line sales of the company has crossed over 1 crores with no significant operational expenses.

(iv) They are engaged in trading of Cenzure, Arpimune, Azathioprine IP, Everomimus, Mycophenolate Mofetil USP, Mycophenolate Sodium USP, Sirolimus, Tacrolimus USP, Infrared thermometer, Ascorbic Acid Coated Vitamin C, Calcium carbonate oyster, Cellulose acetate Phthalate, Chlorthalidone IP, Cross Carmalose Sod IP/USP, DI Basic Calcium Phosphate IP, DI Ethyl Phthlate, Diltiazem Hydrochloride IP, Easy Coat Fc Titanium Dioxide, Escitalopram IP, Escitalopram Oxalate, Favipiravir among many other products.

(v) The revenue from operations from the fiscals 2021, 2020 and 2019 were ₹ 27.27 lacs, ₹ 33.41 Lacs and ₹ 66.74 Lacs respectively. Our EBITDA for the fiscals 2021, 2020 and 2019 were ₹ 1.02 Lacs, ₹ 1.89 Lacs and ₹ 1.34 Lacs respectively. The profit after tax for the Fiscals 2021, 2020 and 2019 was ₹ 0.74 Lacs, ₹ 1.40 Lacs and ₹ (1.46) Lacs respectively.

Objects of the Achyut Healthcare Limited IPO:

a) Funding purchases of machineries and equipment; b) General Corporate Purposes
DRHP of Achyut Healthcare Limited IPO

Achyut Healthcare Limited IPO Details:

Open Date: Mar 17 2022
Close Date: Mar 22 2022
Total Shares: 1,800,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Issue
Issue Size: 3.6 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 20 Per Equity Share
Listing At: BSE SME
Listing Date: Mar 30 2022

Promoters And Management:

1. MAHENDRA CHATRABHUJ RAYCHA : Mahendra Chatrabhuj Raycha, aged 68 years, is the Chairman, Promoter and Non-Executive Director of the Company. He has passed the bachelor’s of commerce degree examination held by Gujarat University and is a fellow member of the Institute of Chartered Accountants of India. He has more than 25 years of experience in the pharmaceutical industry. 2. AKSHIT MAHENDRA RAYCHA : Akshit Mahendra Raycha, aged 32 years, is the Promoter and NonExecutive Director of the Company. He has passed the bachelor’s of commerce degree examination held by Gujarat University and holds an executive master’s degree in business administration from Ahmedabad University. He has more than 11 years of experience in the pharmaceutical industry.

Financials of Achyut Healthcare Limited IPO:

Particulars (in Lakhs) Aug-21 Mar-21 Mar-20 Mar-19
Sales 159 27 33 67
Purchases of Stock-In-Trade 111 33 18 55
Changes in Inventories -7 -10 0 0
Employee Benefits Expense 1 1 1 1
Other Expenses 45 2 13 9
Operating Profit 9 1 1 2
OPM % 5.66% 3.70% 3.03% 2.99%
Other Income 0.00 0.16 1.15 0.04
Interest 0.02 0.03 0.03 0.07
Profit before tax 8.71 1.02 1.89 1.34
Total Tax Exps 2.41 0.28 0.49 2.80
Net Profit 6.30 0.74 1.40 -1.46
NPM % 3.96% 2.74% 4.24% -2.18%
No. of shares 69.41 69.41 69.41 69.41
EPS in Rs 2.52 0.30 0.56 -0.58

Comparison With Peers:

 
Name of the Company Face Value EPS PE RoNW NAV Per Share Total Income PAT
Achyut Healthcare Limited 10 0.01 2000 3.41% 8.68 27.43 0.74
Earum Pharmaceuticals Ltd 2 0.028 392.86 0.61% 4.702 5001.57 9
Vaishali Pharma Ltd 10 0.99 33.54 4.63% 21.25 5377.39 105
Chandra Bhagat Pharma Ltd 10 0.25 366 0.73% 34.29 7117.11 19
Note: We have taken last 3 years average PAT to calculate Achyut Healthcare P/E. For others, we have taken financials of FY21 for calculation.

Recommendation on Achyut Healthcare Limited IPO:

Review and Recommendation of  Achyut Healthcare IPO by InvestorZone is 2/10. 1. There is hardly any growth in the company in the last 3 years. But suddenly, huge jump in revenue in first 5 months of FY22. 27 lakh revenue in whole FY21 and now 1.59 Crores in just 5 months of FY22. 2. Out of 159 Lakh Revenue, 86 lakh is trade receivables. Very high receivables. 3. Hardly any cash is getting generated in the business. Company which till 2021, was generating negative cash-flows from operations is coming up with IPO of 3.6 Crores. 4. Last 3 years profit is just 74k (FY19,FY20, and FY21). EPS would be 0.0106. 5. We have not taken first 5 months of FY22 in calculating EPS and taken last 3 years average and based on that the P/E is 2000x. 6. Asking Mcap of ~14 Crores but having average revenue of the last 3 years is just 42 lakh.

Lead Manager of Achyut Healthcare Limited IPO:

  1. GYR CAPITAL ADVISORS PRIVATE LIMITED

Registrar of Achyut Healthcare Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Achyut Healthcare Limited 610 Colonade, B/H Iscon Temple, Opposite Iscon, BRTS Bus Stand, Iscon – Ambali Road, Ahmedabad- 380 058, Phone: 07948982691 Email: compliance@achyuthealthcare.com Website: http://achyuthealthcare.com/

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