Blue Jet Healthcare Limited is a speciality pharmaceutical and healthcare ingredients and intermediates company, offering niche products targeted toward innovator pharmaceutical companies and multi-national generic pharmaceutical companies. Since the incorporation in 1968, they have established a contract development and manufacturing organization ('CDMO') business model with specialized chemistry capabilities in contrast media intermediates and high-intensity sweeteners, on the back of strategic and early investments in research and development and manufacturing infrastructure. They have competencies and manufacturing capabilities in contrast media intermediates and high-intensity sweeteners, including saccharin and its salts. They manufacture a range of products in-house, including the key starting intermediate and advanced intermediates, which allows them to control the production process for consistent quality and cost effectiveness. In the past three Financial Years and the three months ended June 30, 2023, they invoiced a total of more than 400 customers in 39 countries. They have built a long-term customer base with innovator pharmaceutical companies and multi-national generic pharmaceutical companies, supported by committed multi-year contracts of up to five years. Company's operations are primarily organized in three product categories: (i) contrast media intermediates, (ii) high-intensity sweeteners, and (iii) pharma intermediates and active pharmaceutical ingredients ('APIs'). Company currently operates three manufacturing facilities, which are located in Shahad (Unit I), Ambernath (Unit II) and Mahad (Unit III) in the state of Maharashtra, Bharat, with an annual installed capacity of 200.60 KL, 607.30 KL and 213.00 KL, respectively, as of June 30, 2023. The facilities undergo stringent customer audits on a recurring basis. The Unit II facility is certified by the World Health Organization for good manufacturing practices, and is registered with the US-FDA. In addition. As per financial performance, Blue Jet Healthcare Limited has posted total income / net profits of Rs 507.81 Cr / Rs 135.78 Cr (FY21), Rs 702.88 Cr / Rs 181.59 (FY22), Rs 744.93 Cr / Rs 160.02 Cr (FY23) and Rs 184.60 Cr / Rs 44.12 Cr (FY24 Q1). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 27.16 and average RoNW of 31.57% for last three fiscals. Issue is priced at a P/BV of 8.27 as per NAV of 41.83 as on 30.06.23. If we attribute latest earnings of FY22, FY23, TTM and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 33.05, 37.51, 34.04 respectively, which looks fully priced. As per RHP, there is no peers. On BRLM's front, three lead managers are associated with this IPO, and have handled around 87 IPOs in last three fiscals. Kotak Mahindra Capital Company Limited : This is 37th IPO from this BRLM. From last 10 IPOs, 3 opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, 2 are trading below issue price and remaining are trading above issue price or at par. (As on 19.10.2023) ICICI Securities Limited : This is 42th IPO from this BRLM. From last 10 IPOs, 2 opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, all are trading above issue price or at par. (As on 19.10.2023) JP Morgan India Private Limited : This is 11th IPO from this BRLM. From last 10 IPOs, 6 opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, 3 are trading below issue price and remaining are trading above issue price or at par. (As on 19.10.2023) As per financials, Blue Jet Healthcare Limited has shown average growth, RoNW is 23.48% and P/E is respectively 33.05, 37.51, 34.04 and 34.01 as per FY22, FY23, TTM and annualised FY24 earnings. So, issue looks fully priced. Company is in business of speciality pharmaceutical and healthcare ingredients and intermediates. So, we give SUBSCRIBE rating for listing gains for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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