Onyx Biotec Limited had started its operation in pharmaceutical industry with sterile water for injections in the year 2010. Since then, Onyx has become a prominent supplier of sterile products to major corporations, which includes the top pharma companies at pan India level. Presently, the Company manufactures Sterile Water for Injections, and acts as a pharmaceutical contract manufacturer offering a comprehensive range of Dry Powder Injections and Dry Syrup for India and overseas. The service also include preparation and filing of regulatory dossiers in the Indian and global markets. The Company has two manufacturing facilities in Himachal Pradesh. The manufacturing facility Unit I is having production capacity of 6,38,889 units of Sterile Water for Injections per day and Unit II is having a capacity of 40,000 units of dry Powder injection per day and 26,667 units of dry syrup per day in a single shift. The manufacturing units have been accredited by global regulatory agency i.e. World Health Organization Good Manufacturing Practice ('WHO-GMP'). During the Financial Years 2024, 2023 and 2022, the manufacturing units were subject to 8 (eight) audits in Unit I and 7 (seven) audits in Unit II by the clients and 3 (three) inspections by the regulators. Company intends to utilise a Rs 607.70 Lakhs of the Net Proceeds towards upgradation of the existing manufacturing Unit I, to manufacture large volume parentals for intravenous use, which will be sold under Onyx brand name to pharma companies, distributors, stockist and hospitals. This will enable the Company to cater the entities which are operating in critical care space of healthcare industry. This will also enable them to offer all three categories of sterile products to the customers. They also intend to utilise a Rs 124.05 Lakhs of the Net Proceeds to setup a high-speed cartooning packaging line at existing manufacturing Unit II for Dry Powder Injections. This will help (i) complete packaging at a considerably quicker rate; (ii) Cost efficiency by reducing manpower cost; and (ii) Ensure product safety and error free output. As of May 31, 2024, the key clients includes Hetero Healthcare Limited, Mankind Pharma Limited, Sun Pharmaceutical Industries Limited, Aristo Pharmaceuticals Private Limited, Macleods Pharmaceuticals Limited, Mapra Laboratories Private Limited, Axa Parenterals Limited, FDC Limited, Zuventus Healthcare Limited, Akums Drugs and Pharmaceuticals Limited, Reliance Life Sciences Limited, among others. Company has benefitted from repeat orders in the past three years from 35 of our more than 100 clients in terms of revenue, as of May 31, 2024. As on July 31, 2024, our Company has 175 employees on payroll. In addition to the above, as on July 31, 2024, they have employed 20 contract labour in the manufacturing facility. As per financial performance, Onyx Biotec Limited has posted total income / net profits of Rs 44.98 Cr / Rs 3.35 Cr (FY22), Rs 39.62 Cr / Rs 1.84 Cr (FY23), Rs 53.87 Cr / Rs 3.03 Cr (FY24) and Rs 10.54 Cr / Rs 1.31 Cr (Q1 FY25). So as per previous financials data, company has shown zig-zag results. Company has posted an average EPS of Rs 2.26 and average RoNW of 12.88% for last three fiscals. Issue is priced at a P/BV of 3.1 as per NAV of 19.66 as on 31.05.24. If we attribute latest earnings of FY23, FY24 and annualised FY25 on fully diluted equity post issue, then asking price is at a P/E of around 59.96, 36.48 and 14.1 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Horizon Management Private Limited is associated with this SME IPO and handled 9 SME IPOs in last 3 years. From last 9 IPOs, two opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 9 IPOs, three are trading below issue price and remaining are trading above issue price as on today. ( As on 08.11.24 ) As per financials, Onyx Biotec Limited has shown zig-zag results, RoNW is 19.29% and P/E is respectively 59.96, 36.48 and 14.1 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fully priced. Company manufactures Sterile Water for Injections, and a comprehensive range of Dry Powder Injections and Dry Syrup for India and overseas companies, which is highly competitive and fragmented business segment. Performance of BRLM is very good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment