EMCURE PHARMACEUTICALS IPO Review

Emcure Pharmaceuticals Limited is one of the leading Indian pharmaceutical companies engaged in developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas.

The Company is led by Promoters with significant experience in the pharmaceutical industry who are supported by a strong professional management team named, SATISH RAMANLAL MEHTA (Promoter), who has significant experience in the pharmaceutical industry for over 17 years.

Financially, Emcure Pharmaceuticals revenue increased from ₹59,188.60 Millions in FY22 to ₹60,317.16 Millions in FY23 and currently at ₹67,152.41 Millions in FY24. But, EBITDA decreased from ₹13,933.81 Millions in FY22 to ₹12,209.41 Millions in FY23 and currently at ₹12,767.82 Millions in FY24. Similarly the PAT also decreased from ₹7,025.56 Millions in FY22 to ₹5,618.45 Millions in FY23 and currently at ₹5,275.75 Millions in FY24. This indicates a steady financial performance.

For the Emcure Pharmaceuticals IPO, the company is issuing shares at a pre-issue EPS of ₹27.54 and a post-issue EPS of ₹24.84. The pre-issue P/E ratio is 36.60x, while the post-issue P/E ratio is 38.26x against the industry P/E ratio of 40.41x. The company's ROCE for FY24 is 19.37%, and ROE for FY24 is 16.90%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Emcure Pharmaceuticals indicates potential listing gains of 20%-25%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the IPO for Listing Gains or Long Term Investment Purposes.