Medicamen Organics Limited IPO

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This business is a pharmaceutical company specializing in the development, manufacturing, and distribution of a broad range of pharmaceutical dosage forms. These include tablets, capsules, oral liquids, ointments, gels, syrups, suspensions, and dry powders. They primarily operate as a contract manufacturer or third-party manufacturer, serving both governmental (state and central) and private institutions.

Manufacturing Capabilities:

i. The two WHO GMP-certified facilities are based in Haridwar, Uttarakhand, with an expansive area of over 21,500 square feet.
ii. These facilities feature a fully equipped quality control department with experienced staff, an in-house testing laboratory, and the necessary infrastructure to ensure the quality of both raw materials and finished products.
iii. ISO 9001:2015 certification ensures adherence to stringent quality management standards.

Product Portfolio:

i. The product portfolio comprises 84 products, spanning categories such as antibiotics, anti-diarrheals, antifungals, antimalarials, antidiabetics, proton pump inhibitors, antihistamines, antihypertensives, lipid regulators, antiparasitics, multivitamins, minerals, and NSAIDs.

Market Reach and Strategy:

i. They market their products through third-party distributors domestically and internationally, targeting private pharmaceutical companies and operating under a loan license.
ii. Their markets include India and a diverse international portfolio across Africa, CIS countries, and Southeast Asia. Countries like Congo, Burundi, the Philippines, Kenya, and Kyrgyzstan are among your primary markets.
iii. A recent direct export to Burundi reflects your strategic focus on establishing a direct international presence.

Business Model:
Their B2B model is primarily based on contract manufacturing, and their core competency lies in product development and documentation. This provides an advantage in market adaptability, frequent product launches, and competitive pricing.

With these foundational strengths, their business is poised for continued growth in the pharmaceutical industry, both in domestic and international markets.

Objects of the Medicamen Organics Limited IPO:

The Company proposes to utilize the Net Proceeds from the Issue towards the following objects: i. Funding of expenses proposed to be incurred towards Product registration in the international markets; ii. Plant updation and increase in production capacity; iii. Funding working capital requirements of our Company; iv. General Corporate Purposes.
DRHP of Medicamen Organics Limited IPO
RHP of Medicamen Organics Limited IPO

Medicamen Organics Limited IPO Details:

Open Date: Jun 21 2024
Close Date: Jun 25 2024
Total Shares: 3,100,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 10.54 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 32 - 34 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jun 28 2024

Promoters And Management:

Bal Kishan Gupta, Indian National, aged 71 years, is the Promoter of the Company. He is the Chairman and Managing Director of the Company. He holds a bachelor of Arts degree. He has more than 35 years of experience in manufacturing, exports and distribution of pharmaceutical products. He has been associated with the Company since inception and is responsible for expanding business horizons, corporate strategy, leadership and management, financial performance across verticals, stakeholder relations, innovation and growth, identifying new opportunities and risk management of the Company. He has been General Secretary of IDMA (India Drugs Manufactures Associations), it is the most reputed association in India for pharmaceutical manufactures. Ashutosh Gupta, Indian National, aged 43 years, is a Whole-time Director of the Company. He holds the degree of Bachelor of Business Administration from Guru Jambheshwar University, Hissar. He has been awarded with the degree of Honorary Doctorate in contribution in Export of Pharma Industry in the year 2021. He has been Chairman of Pharmexcil (Pharmaceuticals Export Promotion Council of India) from 2014-2016, a Government of India Council, specifically created for promotion of pharmaceutical exports from India. Shailesh Harimohan Gaur, Indian National, aged 55 years, is an Executive Director of the Company. He holds the degree of Bachelor of Science and Master of Business Administration (MBA) awarded by National Institute of Business Management. He has undergone Diploma programme in Production Management. He has a vast experience of more than 33 years in pharmaceutical manufacturing, pharmaceutical projects, installation, validations, Research and Development of different pharmaceutical formulations. His current key functional areas are Production Planning and Inventory Control (PPIC), various audits etc.

Financials of Medicamen Organics Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 2,098 2,215 2,527
Other Income 21 82 2
Total Revenue 2,119 2,296 2,529
Cost of materials consumed 1,412 1,398 1,440
Direct Expenses 225 241 287
Change in Inventories -71 -60 -147
Employees Benefit Expenses 287 317 335
Other Expenses 124 132 138
EBITDA 141 268 476
OPM (%) 6.65% 11.69% 18.80%
Depreciation & Amortisation 68 71 72
EBIT 73 197 404
Finance Cost 47 61 65
PBT 26 136 339
Tax 15 39 98
PAT 10 97 240
NPM (%) 0.48% 4.22% 9.51%
No.of Shares 117.00 117.00 117.00
EPS 0.08 0.82 2.05

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Medicamen Organics Limited 25 2 2.05 16.5 34 40
Brooks Laboratories Ltd 79 -20 -7.46 N/A 87.8 231
Cian Healthcare Ltd 62 0.3 0.10 254.0 25.4 64
Zenotech Laboratories Ltd 41 8 1.36 44.1 60 366
* All the data is as per FY24.

Recommendation on Medicamen Organics Limited IPO:

Review and Recommendation of Medicamen Organics by team IZ is 6/10. 1. The company specializes in the development, manufacturing, and distribution of a wide range of pharmaceutical dosages, including tablets, capsules, oral liquids, ointments, gels, syrups, suspensions, and dry powders. 2. They serve both government and private institutions as a contract manufacturer/third-party manufacturer. Their product portfolio includes generic dosages marketed through third-party distributors and on a loan license basis in domestic and international markets. 3. International Presence They have established a direct international presence, notably exporting products directly to Burundi in fiscal years 2023 and 2024. Their products are marketed across India and in several international markets, including African, CIS, and Southeast Asian countries such as Congo, Benin, Cameg, Togo, Senegal, Burkina Faso, Philippines, Myanmar, Mozambique, Kyrgyzstan, and Kenya. 4. Product Development and Portfolio Their product portfolio consists of 84 products, covering a wide range of therapeutic areas, including: i. Anti-Bacterial                          ii. Anti-Diarrheal                              iii. Anti-Fungal iv. Anti-Malarial                          v. Anti-Diabetic                               vi. Proton Pump Inhibitors vii. Anti-Histamine                  viii. Anti-Hypertensive                      ix. Anti-Lipidemic x. Anti-Parasitic                        xi. Multivitamins and Multiminerals xii. Non-Steroidal Anti-Inflammatory Drugs (NSAIDs) 5. SWOT Analysis Strengths: i. Good relations with established distributors ii. Wide range of registered products iii. Broad product range under registration Weaknesses: i. Dependency on buyers                                ii. Lack of brand awareness   iii. Lack of firm financial arrangements Opportunities: i. Expanding into new geographical markets ii. Regulatory strength and robust documentation iii. Extensive product range under registration Threats: i. Fluctuation in raw material prices ii. Competition from organized and unorganized players iii. Changes in government policies 6. Competitive Landscape They face competition from both organized and unorganized players in the pharmaceutical industry. Key competitive factors include manufacturing capacities, branding, marketing, and financial resources. They continuously strive to expand their market share by launching new products and penetrating new geographical regions. 7. The Revenue has Increased from Rs.21 Crores in FY22 to Rs.25 Crores in FY24. 8. The EBITDA has Increased from 1 Crores in FY22 to 4 Lakhs in FY24. 9. The PAT has Increased from 10 Lakhs in FY22 to 2.4 Crores in FY24. 10. As per FY24, CFO/EBITDA is 1.02, and EPS is 2.05, 11. Market Capitalization is 40 Crores and P/E is 16.5x based on FY24.

Lead Manager of Medicamen Organics Limited IPO:

  1. GYR CAPITAL ADVISORS PRIVATE LIMITED

Registrar of Medicamen Organics Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Medicamen Organics Limited 10 Community Centre, No 2 Ashok Vihar Phase II, New Delhi, Delhi, 110052 Phone: +91-9818222845 Email: cs@mediorganics.in Website: http://www.medicamenorganics.com/

Discussion on Medicamen Organics Limited IPO:

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