Accretion Pharmaceuticals IPO Review

Accretion Pharmaceutical Limited is one of the most promising & rising groups in the Healthcare industry with a rich legacy of high-quality healthcare through Ayurveda, Nutraceuticals and Pharmaceutical products. The company has established itself as a conglomerate of 4 strong companies with collective strength of 400+ people and year-on-year progress leading to a constant growth.

The Company has Promoters, Mr. Vivek Ashokkumar Patel, Mr. Harshad Nanubhai Rathod, Mr. Mayur Popatlal Sojitra and Mr. Hardik Mukundbhai Prajapati have collective experience of more than 5 decades in the manufacturing and supply of pharmaceutical products.

The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 3,574.93 Lakh, ₹ 3,393.86 Lakh, ₹ 2,953.15 Lakh and ₹ 2,258.42 Lakh respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 882.45 Lakh, ₹ 776.28 Lakh, ₹ 213.85 Lakh, and ₹ 193.10 Lakh, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 523.55 Lakh, ₹ 387.53 Lakh, ₹ 10.39 Lakh, and ₹ 7.90 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 9.69 and post-issue EPS of ₹ 3.49 for FY24. The pre-issue P/E ratio is 10.42x, while the post-issue P/E ratio is 28.97x against the Industry P/E ratio is 28x. The company's ROCE for FY24 is 36.73%, ROE for FY24 is 72.47% and RoNW is 72.47%. The Annualised EPS based on the latest financial data is ₹ 11.65 and PE ratio is 8.66x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Accretion Pharmaceuticals showing listing gains of 0.00 %.Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Accretion Pharmaceuticals Limited IPO for Listing gain.

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About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.