Sai Life Sciences IPO: The Good and the Bad

Published: 11th Dec 2024

By: Value Research

The company

Sai Life Sciences is a pharmaceutical contract research, development and manufacturing organisation (CRDMO). It derives nearly 43 per cent of its revenue from new drug discovery research and the rest from contract development and manufacturing. The company is export driven and derives 97 per cent of its business from the US, UK, Europe and Japan.

IPO details

Post-IPO

Financial history

EBIT is earnings before interest and taxes PAT is profit after tax TTM is 12 months ending September 2024

Key ratios

ROE is return on equity ROCE is return on capital employed

The good

The company touts a strong customer base including 18 of the world’s top 25 players by revenue (as of 2023). These include Pfizer, Johnson & Johnson, among others.

The good

The company offers integrated services across the drug discovery, development and manufacturing value chain. This allows the company to provide end-to-end support and also acquire customers in the intermediate stages.

The bad

The company’s operating margins are pressured due to excessive employee costs. To read about this risk in detail, head on to our story from the link below:

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