Supriya Lifescience IPO: How good is it?

In our story, Supriya Lifescience IPO: Information analysis, we have shared the key details of the IPO, along with important information about the company. Here we will answer some questions about Supriya Lifescience and evaluate it on parameters like management, financials, valuations, etc. IPO questions The company/business 1) Are the company's earnings before tax more than Rs 50 crore in the last 12 months? Yes. The company's earnings before tax stood at Rs 167 crore for FY21. 2) Will the company be able to scale up its business? Yes. The company has planned to utilise a part of the proceeds for capital expenditure and it has already acquired a plot of land for it. So, it would be able to scale up its business in the coming years. 3) Does the company have recognisable brands truly valued by its customers? Yes. Even though brand recognition does not hold much significance in the B2B segment, the company's leadership position in several APIs and strong global presence have helped it gain a reputation among various players. 4) Does the company have high repeat customer usage? Yes. The company has been associated with three companies for more than nine years and with seven companies for more than four years. 5) Does the company have a credible moat? Yes. Owing to the backward integration in its 12 APIs, the company is able t0 maintain cost leadership in those products. It also derives a significant portion of revenue from those APIs. 6) Is the company sufficiently robust to major regulatory or geopolitical risks? No. The company has huge exposure to the international market for both raw materials and sales. Any adverse change in geopolitical conditions can affect the business. 7) Is the business of the company