Senores Pharmaceuticals IPO: The good and the bad

Published: 20th Dec 2024

By: Value Research

About Senores Pharmaceuticals

Senores Pharmaceuticals primarily manufactures off-patent generic products and operates two manufacturing facilities in the US and India (Ahmedabad). It operates in over 45 countries and has partnered with well-established brands like Sun Pharma, Dr Reddys and  Alkem Laboratories to sell its products.

IPO details

Post-IPO

Financial history

EBIT is earnings before interest and taxes PAT is profit after tax TTM (trailing twelve months) is as of September 2024

Key ratios

ROE is return on equity ROCE is return on capital employed TTM is as of September 2024

The good

Senores Pharmaceuticals boasts long-term sales partnerships with industry titans like Sun Pharma, Alkem, Jubilant, etc., and manufacturing for big names in the US. This can help the company establish a significant presence across markets.

The bad

Between FY22 and FY24, Senores Pharmaceuticals reported negative cash flow from operations. This was primarily due to higher working capital requirements as the company’s operations scaled up significantly post the acquisition of Havix and Ratnatris.

The bad

Senores Pharmaceuticals’ US-based facility came under scrutiny from the US FDA in 2022, which cleared recently. Such regulatory actions can significantly impact its financials.

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