MEDICAMEN ORGANICS IPO Review

Medicamen Organic Limited was established in year 1995 and having more than 30 years of experience in pharmaceutical manufacturing. They are engaged in manufacturing of pharmaceutical dosage form such as Tablets, Capsules, Oral Liquids, and Ointments. They are having two WHO-GMP Certified Plant in Haridwar.

The Company have a professional and experienced Promoters named MR. BAL KISHAN GUPTA AND MR. ASHUTOSH GUPTA, who have a combined experience of nearly three decades in the pharmaceutical industry. 

Financially, Medicamen Organics revenue increased from ₹2,118.67 Lakhs in FY22 to ₹2,214.71 Lakhs in FY23 and further increased to ₹2,528.96 Lakhs in FY24. Similarly, EBITDA increased from ₹140.85 Lakhs in FY22 to ₹268.37 Lakhs in FY23 and continue to grow at ₹475.56 Lakhs in FY24. The PAT shows profit of ₹10.14 Lakhs in FY22 to ₹96.93 Lakhs in FY23 and huge jump to ₹240.41Lakhs in FY24 as well. This indicates steady growth in financial performance.

For the Medicamen Organics IPO, the company is issuing shares at a pre-issue EPS of ₹3.18 and a post-issue EPS of ₹2.05. The pre-issue P/E ratio is 10.70x, while the post-issue P/E ratio is 16.58x against the industry P/E ratio of 33.60x. The company's ROCE for FY24 is 14.50%, and ROE for FY24 is 19.90%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) indicates potential listing gains of 100% - 110%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to apply to the IPO for listing gains or long term Investment purposes.