Sudarshan Pharma Industries Ltd IPO

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i. Sudarshan Pharma core business is Specialty Chemicals & Intermediates for Pharma, agro chemicals, Coating, paints, adhesive and various other industries. They are also into Active Pharmaceuticals Ingredients manufacturing. Some products they outsource and manufacturer at its toll manufacturing facility, they are also into specialty chemicals imports & exports as well as supply of same to the actual users. As per the clients need and requirements, they provide customize specialty chemicals to its clients in India and abroad regularly.

ii. They are also involved in Contract Manufacturing, outsource & Supply of Generic Pharma formulation and medicines to healthcare institution, Government, NGO and Hospitals.

iii. They carry about Ethical marketing of pharmaceutical formulation & products in the Domestic and International market through its own distribution network and Sales force under its own brands.

iv. The Company & its executives have developed the skill and expertise in innovation in specialty chemical, bulk drugs, API and pharmaceutical formulation to provide the products having wide application in pharma, agro chemicals, performance chemicals, resins, paint, food, adhesive and various other Industries. They also offer services of QC and Formulation Development to provide customised solutions to its customers and assist them in sourcing the innovative products as per their needs.

v. Presently, the company has a Contract Manufacturing Agreement with few pharmaceutical companies. The company has also joined hands with regular suppliers having FDA and WHO approved plant along with its own unit to supply pharma formulation and more than 100 generic pharma products. These units manufacture tablets, capsules, dry powder, dry injections powder, liquids, Injections & dry injections for its own brands.

vi. They have launched wide products range in pharma formulation such as Setdown, Pulmo relief, Fix Pollen, Flupimac and many more as well as have established goodwill for quality products and have regular clients for the same.

vii. The company operate both in domestic and international markets. Presently, they are supplying Active Pharmaceutical Ingredients (APIs), Intermediates Finished Dosage Formulations (FDFs) and Specialty Chemicals (SCs) in the domestic markets.

viii. The Management is planning for business expansion by having its own state of the art manufacturing facility at Mahad along with its mini manufacturing facility at Wada Area, Formulation GMP unit at Tarapur, Maharashtra. It also plans to develop distributor network & logistic facility in Mumbai, Delhi, Chennai, Hyderabad and Ahmedabad. This shall also support E-commerce and Online marketing of the company‘s products.

Competiitve Strengths

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



Objects of the Sudarshan Pharma Industries Ltd IPO:

The Company intends to utilize the Net Fresh Issue Proceeds for the following Objects: i. Working Capital Requirements ii. General Corporate Purposes.  

Sudarshan Pharma Industries Ltd IPO Details:

Open Date: Mar 09 2023
Close Date: Mar 14 2023
Total Shares: 6,862,400
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 50.10 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 71-73 Per Equity Share
Listing At: BSE SME
Listing Date: Mar 22 2023

Promoters And Management:

Mr. Hemal Vasantrai Mehta, aged 45 years, is Diploma Holder in Chemical Engineering from Pune University (Maharashtra) completed in 1998. He has more than 14 years of experience in Sourcing and Supply of Specialty chemicals, Intermediates, API, Bulk Drugs & entered into Pharmaceuticals in the last 2 years. Currently, he is the head of functions of Marketing, Business Development and Customer relationship management. He is also into Corporate Development & New Business Ventures to achieve the growth & business plans of the Company. Further, he is responsible for entering into trade alliances & partnership arrangement with leading API manufacturers for purchase of all kinds of Chemicals on a regular basis from SPIL. Mr. Sachin Vasantrai Mehta, aged 38 years, He is holding a Diploma in Exports & Import Management from Indian Merchant Chambers, Mumbai. He has more than 14 years of experience in Chemical Industry and import and Export. Since 2008, he has been involved in sourcing of Specialty Chemicals, Intermediates & Basic Solvents from Korea, Taiwan, China and Japan for the Company. In 2008, under his leadership the Company developed new products of Specialty intermediates through Organic Research. In 2014, under his leadership the Company entered the export markets of Countries like Myanmar, Uzbekistan, Somalia, Ghana, Cambodia, and Latin America & African for all finished formulations. Currently, he is the heading discovery of new chemical entities, exports & chemicals supply and trading business of the companies. Mr. Umesh Luthra, aged 40 is the Independent Director of the Company. He was appointed as Additional Director with effect from March 31, 2022. He was further regularised as Independent Director of the Company for a period of 5 years w.e.f. September 26, 2022 upto September 25, 2027. He completed his Masters of Science in Microbiology in the year 1994 and further holds a Degree of Doctor of Philosophy since year 2015.  

Financials of Sudarshan Pharma Industries Ltd IPO:

Particulars ( In Crore ) 6MFY23 2022 2021 2020
Revenue from Operations 195 357 193 147
Other Income 0.40 0.46 0.4 0.02
Total Revenue 195 357 193 148
Cost of Materials Consumed 187 360 185 144
Change in Inventories -2 -22 -6 -6
Employee Benefits Expense 1 2 1 1
Other Expenses 3 5 5 3
EBITDA 7 11 7 4
Depreciation & Amortisation 0.43 0.86 0.74 0.34
Finance Cost 2 3 3 2
EBIT 6 10 6 4
OPM (%) 3.77% 3.20% 3.89% 3.23%
PBT 4 7 3 1
Taxes 1 1 0.90 0.44
PAT 3 5 2 1
NPM (%) 1.84% 1.48% 1.38% 0.86%
No.of Shares 2 2 2 2
EPS 1.49 2.20 1.10 0.52
P/E 48.70 33.12 65.76 137.77

Comparison With Peers:

Name of the Company Revenue (Cr) Profit (Cr) P/E EPS CMP Mcap (Cr)
Sudarshan Pharma Industries Limited 390 7 24.35 2.99 73 175
ERIS Lifesciences Limited 1,588 393 21.6 29.21 624 8,487
Sigachi Industries Limited 285 43 18.30 13.84 253 778
Aarti Drugs Limited 2,443 153 22.1 16.48 364 3,370

Recommendation on Sudarshan Pharma Industries Ltd IPO:

Review and Recommendation of Sudarshan Pharma is 5/10 1. They make Specialty Chemicals & Intermediates for Pharma, agro chemicals, Coating, paints, adhesive and various other industries. They are also into Active Pharmaceuticals Ingredients manufacturing. 2. They import, export, and sell speciality chemicals, and they outsource and produce some items at their toll manufacturing site. They often customise unique chemicals for Indian and international clients. 3. They want to build their brand and reputation for quality API, bulk medicine, and pharma products and compete with China and other markets by making these items in India. Several FDA- and WHO-approved manufacturers support their Pharma & Specialty Chemical company. 4. They have Contract Manufacturing Agreements with a few pharmaceutical companies. Their company also supplies pharma formulation and over 100 generic pharma items with FDA and WHO-approved suppliers. These units make pills, capsules, liquids, injections, dry powder, and dry injections for their own brands. 5. They operate both in domestic and international markets. They supply APIs, Intermediates, FDFs, and SCs to domestic markets. They export to Saudi Arabia, Qatar, Uzbekistan, Bangladesh, Ghana, Georgia, Taiwan, Sultanate of Oman (Muscat), Dubai, UAE, and UK. Its product pipeline is ready for export to South East Asia, Middle East, and North Africa (MENA Region). 6. To expand exports, they are filing for 16 formulation registrations in Ghana, Georgia, Burma, Nigeria, Kenya, Malaysia, and the MINA area. Its pharmaceutical and specialty chemical customers include Suan Hong Trade Ltd Taiwan, Muscat Pharmaceuticals Mfg. Co Oman, Nikapharma Uzbekistan, Remex Bangladesh, and Rose Chemicals Limited UK. 7. Their company competes with domestic and international chemical and pharmaceutical companies. Competition comes from private and public companies, organised and disorganised. Quality, technology, fast delivery, price, product portfolio, and customer service are the main competitive elements. 8. The Revenue has Increased from Rs.148 Crore in FY20 to Rs.357 Crore in FY22. 9. The EBITDA has Increased from 4 Crore in FY20 to 11 Crore in FY22. 10. The PAT has Increased from 1 Crore in FY20 to 5 Crore in FY22. 11. The company has high debt of ~50 Crores on books as on 30.09.2022 12. As per FY23, EPS is 2.99,  Market Capitalization is 175 Crore & P/E is 25x.  

Lead Manager of Sudarshan Pharma Industries Ltd IPO:

  1. Gretex Corporate Services Private Limited

Registrar of Sudarshan Pharma Industries Ltd IPO:

  1. Kfin Technology Private Limited

Company Address:

Sudarshan Pharma Industries Ltd 301,3rd Floor, Aura Biplex, Above Kalyan Jewellers S. V. Road, Borivali (West) Mumbai - 400092 Phone: 022- 42221111 Email: Website

Discussion on Sudarshan Pharma Industries Ltd IPO:

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