Sai Life Sciences IPO Review

Sai Life Sciences is the fastest-growing contract research, development, and manufacturing organisation (CRDMO) among listed Indian peers (in terms of revenue CAGR as well as EBITDA CAGR from FY22 to FY24). As a pure-play, full-service CRDMO, they work with over 280 global innovator pharma and biotech companies to accelerate the discovery, development, and commercialisation of their NCE small molecule programmes.

The Company is promoted by strong Promoters, namely, KANUMURI RANGA RAJU, KRISHNAM RAJU KANUMURI, KANUMURI MYTREYI, SAI QUEST SYN PRIVATE LIMITED, MARIGOLD PARTNERS, SUNFLOWER PARTNERS, TULIP PARTNERS AND LILY PARTNERS.

The revenues from operations for Fiscals ended 2024, 2023 and 2022 were ₹14,942.69 Million, ₹12,451.05 Million and ₹8,977.41 Million respectively. The EBITDA for Fiscals ended 2024, 2023 and 2022 were ₹2,881.55 Million, ₹1,864.78 Million, and ₹1,459.58 Million, respectively. The profit after tax for Fiscals ended 2024, 2023 and 2022 were ₹828.09 Million, ₹99.89 Million, and ₹62.26 Million respectively.

For the Sai Life Sciences IPO, the company is issuing shares at a pre-issue EPS of ₹4.53 and a post-issue EPS of ₹0.40. The pre-issue P/E ratio is 121.19x, while the post-issue P/E ratio is 136.21x against the Industry P/E ratio is 95.33x. The company's ROCE for FY24 is 10.26% and RoE for FY24 is 8.49%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Sai Life Sciences showing potential listing gains of 8.66%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Sai Life Sciences 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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