Onyx Biotec IPO Review

Onyx Biotec Ltd. is a leading pharmaceutical company engaged in the manufacture and sale distribution of generic and proprietary pharmaceutical products.
Onyx Biotec Ltd. established in 2009, develops, manufactures and distributes generic and branded pharmaceutical products in various forms like (WFI) Water for Injection, Dry Powder Injections, Dry Powder Syrup.

The Company is led by experienced management team comprising qualified Key Managerial Personnel. Their co-founders, Promoters and managing directors, Sanjay Jain and Naresh Kumar, both have extensive experience in the Indian pharmaceutical industry. They are supported by Harsh Mahajan and Lakshya Jain, who manage their manufacturing operations, marketing strategies and finance at Onyx. Sanjay Jain has a long history in pharmaceutical industry of more than 16 years.

The Revenues from operations for the Fiscals 2024, 2023 and 2022 were ₹5,387.43 Lakhs, ₹3,961.65 Lakhs and ₹4,498.09 Lakhs, respectively. The EBITDA for the Fiscals 2024, 2023 and 2022 were ₹840.77 Lakhs, ₹459.25 Lakhs and ₹575.79 Lakhs, respectively. The Profit after Tax for the Fiscals 2024, 2023 and 2022 was ₹303.16 Lakhs, ₹184.46 Lakhs and ₹335.29 Lakhs, respectively.

For the Onyx Biotec IPO, the company is issuing shares at a pre-issue EPS of ₹2.54 and a post-issue EPS of ₹1.67. The pre-issue P/E ratio is 24.01x, while the post-issue P/E ratio is 36.52x against the Industry P/E ratio is 75.10x. The company's ROCE for FY24 is 10.58% and RoE for FY24 is 12.19%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Onyx Biotec showing potential listing gains of 0%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Onyx Biotec Limited IPO for Listing gain or long term investment purposes.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

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 during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.
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