Asston Pharmaceuticals Limited IPO: In-Depth Analysis

Asston Pharmaceuticals manufactures and exports pharmaceutical formulations and nutraceutical products, operating in both domestic and African markets under the “Asston” brand.

Their portfolio includes:
✅ Tablets and Capsules
✅ Oral Liquids
✅ External Preparations (Ointments, Creams, Gels, Lotions)
✅ Oral Powders (Sachets, Dry Syrups)

Promoter Background

• Dr. Ashish Sakalkar, Mrs. Saili More, and Mr. Sachin Badakh lead the business.

• They bring expertise in formulations, marketing, and exports for healthcare products.

• A growing team of 50+ professionals.

IPO Details

Financial Performance (₹ in Lakhs)

✅ Revenue grew at ~108% CAGR from FY23 to FY25.
✅ EBITDA and PAT growth also strong.

Valuation Metrics

⚖️ Valuation appears high given post-issue P/E (24.21x) exceeds industry average (16x).

GMP & Listing Prospects

Note: Zero GMP suggests negligible demand for short-term trading.

Strengths

✅ Strong revenue and profit growth trajectory
✅ Diversified pharma and nutraceutical product portfolio
✅ Experienced promoter team with export market focus

Risks & Concerns

⚠️ Small scale relative to peers in a competitive sector
⚠️ Post-issue valuation well above industry average
⚠️ High minimum investment (₹1.23 lakh) limits retail participation
⚠️ SME listing can mean low liquidity post-listing

Expert Recommendation

Final Verdict

Asston Pharmaceuticals demonstrates impressive growth momentum in revenue and profits.

However, the post-issue P/E ratio of 24.21x is significantly above industry average, making the IPO fully priced.

✅ Verdict: Avoid for listing gains.
⚖️ Long-term investors may wait for lower valuations or post-listing clarity before entering

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

The Upcoming IPOs in this week and coming weeks are Asston Pharmaceuticals, CFF Fluid Control, Smarten Power Systems, Glen Industries, Travel Food Services, Anthem Biosciences, Chemkart India.

The Current active IPO are Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS.

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