Published: 30th July 2024
By: Value Research
Akums Drugs is a pharma contract development and manufacturing organisation or CDMO player. It manufactures an extensive range of finished dosages and APIs for its customers.
Total IPO size (Rs cr) 1,857 Offer for sale (Rs cr) 680 Fresh issue (Rs cr) 1,177 Price band (Rs) 646 - 679 Subscription dates July 30, 2024 to August 1, 2024 Purpose of the issue To repay debt, fund potential acquisitions and meet working capital requirements
M-cap (Rs cr) 10,685 Net worth (Rs cr) 1,470 Promoter holding (%) 75.3 Price/earnings ratio (P/E) 13356 Price/book ratio (P/B) 7.3
Key financials 2Y growth (% pa) FY24 FY23 FY22 Revenue (Rs cr) 6.7 4178 3655 3672 EBIT (Rs cr) - -2 225 -186 PAT (Rs cr) - 1 98 -251 Net worth (Rs cr) 709 717 622 Total debt 567 618 394
PAT is profit after tax EBIT is earnings before interest and tax
Ratios 3Y average (%) FY24 FY23 FY22 ROE (%) -8.8 0.11 13.5 -40.1 ROCE (%) 3 3.4 24.6 -18.9 EBIT margin (%) 0.4 -0.1 6.2 -5.1 Debt-to-equity 0.8 0.9 0.6
ROE is return on equity ROCE is return on capital employed
Akums Drugs is the largest India-focused CDMO company by revenue and capacity. It can manufacture nearly 50 billion finished dosages annually through its 11 facilities.
It counts giants like Sun Pharma, Dr Reddy’s Lab and Mankind Pharma among its clients. It has solid client retention as 76% of its revenue came from recurring customers over the last 5 years.
Akums Drugs has a large cash liability towards one of its major investors. This can impact its cash balances. Our full analysis has all the details. Check it from the link below.