Asston Pharmaceuticals IPO Opens July 9: ₹27.56 Cr Issue, Fully Priced at ₹123 Apply and Avoid ?

NOOR MOHMMED

07/Jul/2025

Asston Pharmaceuticals ₹27.56 crore IPO opens July 9 for BSE SME listing on July 16.
Strong revenue growth but high post-issue P/E of 24.21x vs industry average of 16x.
No grey market premium; investors advised to avoid for short-term listing gains.

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

Particulars	Details
IPO Type	Book Built Issue
Total Issue Size	₹27.56 Crores
Fresh Issue	₹27.56 Crores (22.41 lakh shares)
Offer for Sale	Nil
Price Band	₹115 – ₹123 per share
IPO Opens	July 09, 2025
IPO Closes	July 11, 2025
Allotment Date	July 14, 2025
Listing Date	July 16, 2025
Exchange	BSE SME
Market Capitalisation	₹104.70 Crores (at ₹123 price)
Lot Size	1,000 shares
Retail Min Investment	₹1,23,000 (1 lot)
HNI Min Investment	₹2,46,000 (2 lots)

Financial Performance (₹ in Lakhs)

Fiscal Year	Revenue	EBITDA	Profit After Tax
FY25	₹2,561.02	₹673.03	₹432.51
FY24	₹1,584.09	₹280.06	₹136.03
FY23	₹719.19	₹217.05	₹105.66

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

Valuation Metrics

Metric	Value
Pre-Issue EPS (FY24)	₹6.9
Post-Issue EPS (FY24)	₹5.08
Pre-Issue P/E Ratio	17.82x
Post-Issue P/E Ratio	24.21x
Industry Average P/E	~16x
ROCE (FY24)	51.25%
ROE (FY24)	50.56%
RoNW	40.36%

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

GMP & Listing Prospects

GMP Status	Details
Grey Market Premium	₹0
Expected Listing Gain	0%
Investor Sentiment	Weak for listing gains

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

Investor Type	Recommendation
Short-Term Traders	❌ Avoid for listing gains (no GMP)
Conservative Investors	❌ Avoid
Risk-Tolerant Long-Term Investors	⚠️ Consider small allocation if sector outlook is strong

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 NSDL, Spunweb Nonwoven, Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control, Glen Industries, Anthem Biosciences.

The Current active IPO are Smarten Power Systems, Travel Food Services, Chemkart India, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS.

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