Saroja Pharma Industries India Limited IPO

Apply 0
Avoid 0

i. Saroja Pharma is  into Active Pharmaceuticals Ingredients, Specialty Chemicals, Intermediates for Pharma trading. They are also into specialty chemicals imports & exports as well as supply of the same to the actual users. As per the clients need and requirements, company provide customize specialty chemicals in India and abroad regularly. Their Specialty chemicals & its intermediates have wide application in sectors like pharma, agro & chemicals for human and veterinary.

ii. Products

API’s, known as bulk drugs or bulk actives, are the principal ingredients used in making finished dosages in the form of capsules, tablets, liquid or other forms of dosage, with the addition of other APIs or inactive ingredients.

Saroja majorly trade in the following segments of pharmaceuticals raw materials:

1. Liquid Bromine;
2. N-[(4S,6S)-6-Methyl-7,7-dioxido-2-sulfamoyl-5, 6-dihydro-4Hthieno[2,3-b]thiopyran-4yl) acetamide;
3. Ethyl Acetate;
4. Thionyl Chloride;
5. Para Nitro Phenol;
6. Oxyclozanide BP Vet;
7. Benzyl Chloride;
8. Bromhexine HCL BP Grade;
9. Triclabendazole;
10. Fenbendazole BP Vet;
11. Nitroxynil BP Vet;
12. Oxfendazole BP Vet;
13. Albendazole USP;
14. Rafoxanide BP Vet;
15. Febantel EP.

iii. The company exports products mainly in Pakistan, Egypt, Russia, Jordan, Hong Kong, Singapore etc.

Competitive Strengths

i. Experienced Promoters and Management Team
ii. Scalable Business Model
iii. Wide and diverse range of product offerings

Objects of the Saroja Pharma Industries India Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: 1. To Set-up a Manufacturing Unit. 2. To Repay the Unsecured Loans. 3. Public Issue Expenses.
DRHP of Saroja Pharma Industries India Limited IPO
RHP of Saroja Pharma Industries India Limited IPO

Saroja Pharma Industries India Limited IPO Details:

Open Date: Aug 31 2023
Close Date: Sep 05 2023
Total Shares: 1,084,800
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 9.11 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 84 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 13 2023

Promoters And Management:

i. Mr. Biju Gopinathan Nair. A highly motivated and enthusiastic individual with expertise in management. He is primarily involved in the sales & marketing activities of the Company in global and domestic markets with sound business sense during last almost 28 years in the chemical industry. He has done diploma in engineering. He worked as a senior sales manager at Lanxess Private Limited and also work as a Chemical consultant ii. Mr. Manish Dasharath Kamble is a graduate. He is involved in Finance & Accounting affairs of the Company. He is having good experience in Finance & Accounting. Collectively, he has almost 11 years of Experience in Accounts and Finance. He worked as an General manager at Vivacious Pharmatex Pvt Limited. iii. Ms. Pinky Kataruka is a Qualified Chartered Accountant and currently working as a partner in well known Chartered Accountant firm. He has been on the Board of Directors of the Company from May 5th 2023. She has total 15 years of experience

Financials of Saroja Pharma Industries India Limited IPO:

A. Balance Sheet
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Equity Share Capital 1.00 22.58 293.57
Reserves 93 380 215
Borrowings 302 614 1,019
Trade Payables 415 531 586
Other Liabilities 12 4 20
Total Liabilities 729 1,149 1,625
Net Block 8 34 221
Capital Work in Progress 0 0 179
Investments 0.3 3.9 14
Other Assets 3.5 3.9 105
Total NC Assets 12 42 519
Receivables 722 1,398 1,111
Inventory 66 47 387
Cash & Bank 0.4 26 36
Other Assets 22 38 81
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Sales 3,666 5,563 5,019
Raw Material Cost 3,373 5,013 4,870
Change in Inventory -39 19 -340
Employee Cost 86 114 137
Other Expenses 116 207 81
Other Income 9 32 16
EBITDA 139 243 288
EBITDA Margin 3.78% 4.36% 5.73%
Depreciation 2 5 7
Interest 33 80 132
Profit before tax 104 158 149
Tax 30 44 43
Net profit 73 114 106
NPM (%) 1.99% 2.04% 2.11%
C. Cash Flow Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 138 242 286
Receivable -296 -676 287
Inventory -39 19 -340
Payable 140 115 56
Loans And Advances 0 0 20
Other WC Items -17 -24 -48
Working Capital Changes -213 -565 -25
Direct Taxes -30 -44 -42
Net Cash Inflow from Operating Activity -105 -367 219
Cash from Investing Activity
Fixed assets purchased -5 -30 -373
Investments purchased 0 -4 -10
Other investing items 0.4 0.4 -100
Net cash inflow from investing activities -5 -34 -482
Cash from Financing Activity
Proceeds from shares 0 195 0
Proceeds from borrowings 136 312 405
Intrest paid fin -33 -80 -132
Net Cash Flow -7 26 10

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Saroja Pharma Industries India Private Limited 50 1 2.63 31.8 84 34
NGL Fine Chem Limited 275 20 32.57 49.9 2210 1366
Sequent Scientific Limited 1,421 -122 -4.86 N/A 94 2,334
* All the data is as per FY23.

Lead Manager of Saroja Pharma Industries India Limited IPO:

  1. Swastika Investmart Limited

Registrar of Saroja Pharma Industries India Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Saroja Pharma Industries India Limited 305, Kailash Tower, Shiv Shristi Complex, Goregaon Link Road, Mulund West, Mumbai (MH) – 400080 Phone: +91 (022) 2081 0011 Email: info@sarojapharma.com Website: https://www.sarojapharma.com/

Discussion on Saroja Pharma Industries India Limited IPO:

1 Comment

    Avoid…..

    1. They are mainly into trading and with IPO money looking to start a manufacturing unit. We need to see after IPO how much they can generate revenue, margins and ROCE from manufacturing.

    2. There is no growth in the company from Fy22 to Fy23. No growth means getting valuation is difficult.

    3. Asking P/E of 31x for a trading company is 32x which looks on higher side.

    Reply

Leave a Reply