Emcure Pharmaceuticals Limited IPO

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They are an Indian pharmaceutical company committed to developing, manufacturing, and globally marketing a broad range of pharmaceutical products across several major therapeutic areas. Their operations are research and development (R&D) driven, allowing them to maintain a differentiated product portfolio that includes orals, injectables, and biotherapeutics. This diverse portfolio has enabled them to penetrate target markets across over 70 countries, with a particularly strong presence in India, Europe, and Canada.

Market Position
As of the MAT Financial Year 2024, they have achieved notable rankings within the pharmaceutical industry:
i. 13th Largest in India: They are the 13th largest pharmaceutical company in India based on Domestic Sales.
ii. 4th Largest in Covered Markets: They hold the 4th largest market share by Domestic Sales in their Covered Markets.
iii. Leaders in Gynecology and HIV Antivirals: They are the largest pharmaceutical company in India in the gynecology and HIV antivirals therapeutic areas by Domestic Sales.

These achievements are backed by their promoters’ extensive experience in the pharmaceutical industry and a robust professional management team.

Product Portfolio and Therapeutic Areas
Their competitive edge in the domestic market is rooted in their diversified product portfolio, which includes significant therapeutic areas such as gynecology, cardiovascular, vitamins, minerals and nutrients, HIV antivirals, blood-related, and oncology/anti-neoplastics. They are ranked among the top 10 largest pharmaceutical companies in India across these therapeutic areas based on Domestic Sales for MAT Financial Year 2024.

Key product segments contributing to our revenue include:
* Iron, Chiral, Biotherapeutics, Injectables, and Photo-chemistry Products: These segments collectively accounted for 52.97% of our revenue from sales in India for the Financial Year 2024.

Conclusion

Their strong market position, coupled with a robust R&D-driven approach, diversified product portfolio, and strategic focus on high-growth therapeutic areas, underscores their commitment to continued growth and leadership in the pharmaceutical industry.

Objects of the Emcure Pharmaceuticals Limited IPO:

The Company proposes to utilise the Net Proceeds towards funding the following objects: i. Repayment and/ or prepayment of all or a portion of certain outstanding borrowings availed by the company; and ii. General corporate purposes Total number of share issue :- i. Fresh issue is 7,936,507 shares, ii. Offer for sale is 11,428,839 shares.
DRHP of Emcure Pharmaceuticals Limited IPO
RHP of Emcure Pharmaceuticals Limited IPO

Emcure Pharmaceuticals Limited IPO Details:

Open Date: Jul 03 2024
Close Date: Jul 05 2024
Total Shares: 19,365,346
Face Value: ₹ 10 Per Equity Share
Issue Size: 1,952.03 Cr.
Lot Size: 14 Shares
Issue Price: ₹ 960 - 1008 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jul 10 2024

Promoters And Management:

Berjis Minoo Desai is the Chairman and Non-Executive Director of the Company. He has been on the Board of the Company since April 3, 1997. He holds a bachelor’s degree in law from Government Law College (University of Bombay, Mumbai) and a master’s degree in law from the University of Cambridge, United Kingdom. He has experience in private client practice, business laws, transactional and dispute resolution. He was previously associated as a managing partner with J. Sagar Associates, Advocates & Solicitors. Satish Ramanlal Mehta is the Managing Director and Chief Executive Officer of the Company. He has been associated with the Company since its incorporation on April 16, 1981, as one of the first directors of the Company. He holds a master’s degree in science (chemistry) from the University of Pune, Pune. He has also obtained a post graduate diploma in business administration from the Indian Institute of Management, Ahmedabad. He has significant experience in the pharmaceutical industry. Sunil Rajanikant Mehta is a Whole-time Director of the Company. He has been associated with the Company since February 1, 1985, in the position as a manager of the Company. He holds a bachelor’s degree in commerce from B.M. College of Commerce (University of Pune, Pune) and holds a master’s diploma in business administration from the Institute of Management Development and Research, Pune.

Financials of Emcure Pharmaceuticals Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-22 Mar-23 Mar-24
Equity Share Capital 1,808.52 1,808.52 1,811.52
Reserves 18,067 23,203 27,711
Borrowings 20,836 21,949 20,873
Trade Payables 11,252 10,861 13,094
Other Liabilities 8,671 8,904 14,572
Total Liabilities 40,759 41,714 48,539
Net Block 14,703 16,046 19,486
Capital Work in Progress 3,098 4,035 1,323
Investments 250 250 184
Other Assets 8,343 8,035 14,469
Total NC Assets 26,394 28,366 35,462
Receivables 13,085 16,483 18,588
Inventory 14,494 13,830 15,251
Cash & Bank 3,133 4,583 2,324
Other Assets 3,529 3,463 6,436
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Million) Mar-22 Mar-23 Mar-24
Sales 58,554 59,858 66,583
Raw Material Cost 12,961 11,466 13,331
Purchases of Stock In Trade 10,825 10,472 13,325
Change in Inventory -1,454 667 -1,902
Employee Cost 10,118 11,173 12,921
Other Expenses 12,805 14,268 16,610
Other Income 635 459 570
EBITDA 13,934 12,271 12,867
EBITDA Margin 23.80% 20.50% 19.33%
Depreciation 2,449 2,601 3,124
Interest 1,760 2,136 2,371
Profit before tax 9,725 7,472 7,272
Tax 2,700 1,854 1,997
Net profit 7,026 5,618 5,276
NPM (%) 11.87% 9.31% 7.86%
C. Cash Flow Statement
Particular (In Million) Mar-22 Mar-23 Mar-24
Cash From Operating Activity
Profit From Operation 13,713 12,396 12,704
Receivable -1,729 -3,398 -1,506
Inventory -3,072 664 -268
Payable 3,157 -392 1,543
Other WC Items -1,276 204 736
Working Capital Changes -2,919 -2,922 505
Direct Taxes -3,112 -2,005 -2,237
Net Cash Inflow from Operating Activity 7,682 7,469 10,972
Cash from Investing Activity
Fixed assets purchased -3,782 -3,906 -2,758
Fixed assets sold 31 13 108
Investments purchased 0 -807 -8,990
Investment sold 0 808 6,123
Investment in subsidiaries -2,751 0 -3,451
Other investing items -1,386 -785 1,842
Net cash inflow from investing activities -7,888 -4,677 -7,125
Cash from Financing Activity
Proceeds from shares 0 0 76.60
Proceeds from borrowings 5,473 4,553 6,500
Repayment of borrowings -4,467 -3,427 -4,823
Intrest paid fin -1,553 -1,786 -2,082
Dividends paid -624 -444 -624
Other financing items -347 -350 -689
Net Cash Flow -1,724 1,338 2,205

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Emcure Pharmaceuticals Limited 6658 528 27.90 36.1 1008 19,060
Dr. Reddy's Laboratories Limited 28,011 5,578 334.37 19.0 6362 1,06,137
Cipla Limited 25,774 4,154 51.05 28.1 1,479 1,19,416
Alkem Laboratories Limited 12,668 1,811 150.19 31.4 4,978 59,517
Torrent Pharmaceuticals Limited 10,728 1,656 48.93 60.1 2,830 95,776
Mankind Pharma Limited 9,265 1,823 45.52 47.5 2,162 86,623
Abbott India Limited 5,849 1,201 565.3 48.8 27,600 58,650
J. B. Chemicals & Pharmaceuticals Limited 3,484 553 35.61 51 1,814 28,153
* All the data is as per FY24.

Recommendation on Emcure Pharmaceuticals Limited IPO:

Review and Recommendation of Emcure Pharmaceuticals by team IZ is 5/10. 1. They are a prominent Indian pharmaceutical company engaged in the development, manufacturing, and global marketing of a wide array of pharmaceutical products. Their offerings span several major therapeutic areas, underscoring their commitment to advancing healthcare. 2. As a research and development (R&D) driven company, they boast a differentiated product portfolio that includes orals, injectables, and biotherapeutics. This diverse range has facilitated our reach into over 70 countries, establishing a strong presence particularly in India, Europe, and Canada. 3. Product Portfolio and Therapeutic Areas Their competitive edge in the domestic market is significantly bolstered by their differentiated product portfolio. This has allowed them to secure a foothold in most major therapeutic areas, including: i. Gynecology                                ii. Cardiovascular             iii. Vitamins, Minerals, and Nutrients iv. HIV Antivirals                           v. Blood-related and Oncology/Anti-neoplastics 4. Competition Their competitive landscape varies by market, therapeutic area, and product category, as well as by dosage strengths and drug delivery methods. Within India, their principal competitors include leading Indian pharmaceutical companies such as: i. Dr. Reddy’s Laboratories Limited                             ii. Cipla Limited iii. Alkem Laboratories Limited                                   iv. Torrent Pharmaceuticals Limited v. Mankind Pharma Limited                                         vi. Abbott India Limited vii. J.B. Chemicals & Pharmaceuticals Limited In the international markets, their competitors include both regional companies and multinationals. 5. The Revenue has Increased from Rs.5855 Crores in FY22 to Rs.6658 Crores in FY24. 6. The EBITDA has Decreased from 1393 Crores in FY22 to 1286 Crores in FY24. 7. The PAT has Decreased from 702 Crores in FY22 to 527 Crores in FY24. 8. As per FY24, CFO/EBITDA is 0.98, and EPS is 27.9, 9. Market Capitalization is 19,060 Crores and P/E is 36.1x based on FY24.

Lead Manager of Emcure Pharmaceuticals Limited IPO:

  1. Axis Capital Limited
  2. J.P. Morgan India Private Limited
  3. Jefferies India Private Limited
  4. Kotak Mahindra Capital Company Limited

Registrar of Emcure Pharmaceuticals Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Emcure Pharmaceuticals Limited Plot No. P-1 and P-2, IT-BT Park, Phase II, M.I.D.C., Hinjawadi, Pune -411 057 Phone: +91 20 3507 0033 Email: investors@emcure.co.in Website: https://www.emcure.com/

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