Speciality Medicines Limited engaged in the business of marketing and distribution of finished formulations of specialty pharmaceutical products, comprising of high-cost oral and injectable medications used in the treatment of complex and chronic medical conditions in therapeutic areas like oncology, immunology, neurology and rare diseases. The products which are offered in such areas are available in a wide range of dosage forms like Tablets, Capsules, Cream, Syrups, Eye Drops, Gel, Infusion, Inhalation, Inhaler, Injection, Nasal Spray, Ointment, Ophthalmic, Oral Solution, Oral Suspension, Sachet and Suspension. They operate through two integrated business models: (a) Manufacturing, through contract manufacturing basis, of approved finished formulations and distribution internationally and (b) Marketing and distribution of specialty pharmaceutical products sourced from manufacturers. Under the contract manufacturing arrangement, the contract manufacturer based in India is responsible for the manufacturing of speciality pharmaceutical formulations. These formulations are either approved or currently undergoing the approval process with the relevant health authorities in the target countries. Once the necessary regulatory approvals are obtained, they initiate their role as the distributor for these products. The responsibilities include overseeing the marketing and distribution of the approved specialty pharmaceutical products across multiple international markets. Under the other business model, they operate as a distributor of specialty pharmaceutical products sourced from manufacturers. The role focuses on the procurement, warehousing, and wholesale distribution of these medicines to a wide network of healthcare providers and retailers. Through this dual-model approach, company has, established good relationship with the customers spreading across more than 20 states of India and more than 35 countries all over the world. Their product portfolio consists of more than 900 products, as on October 31, 2025. They operate under different brand names across the globe. Moreover, as on February 28, 2026, they have 7 product registered overseas and total 54 products are under process of registration in 5 countries, which may provide revenue to the company. The Company plans to establish a Research and Development (R&D) Center to manage R&D and formulation processes internally. As per financial performance, Speciality Medicines Limited has posted total income / net profits of Rs 23.19 / 1.69 Cr (FY23), Rs 27.65 / Rs 2.93 Cr (FY24), Rs 58.53 Cr / 8.60 Cr (FY25) and Rs 36.93 Cr / 6.05 Cr (upto 31.10.25 FY26). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO and negative cash-flow raises doubts. Company has an average EPS of Rs 10.20 and average RoNW of 25.41% for last three fiscals. Issue is priced at a P/BV of 2.62 as per NAV of Rs 47.26/- as on 31.03.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 37.14, 12.66 and 10.49 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Unicon Capital Services Private Limited is associated with this IPOs, and has handled 31 IPOs (11 Main Board and 20 SME IPOs) in last three fiscal years. From last 10 IPOs, two opened below issue price and remaining all above issue price or at par, on the day of listing. As of now, from last 10 IPOs, six are trading below issue price and remaining all are trading above issue price or at par. (as on 17.03.26 ) As per financials, Speciality Medicines Limited has shown good growth, RoNW is 28.30% and P/E is 37.14, 12.66 and 10.49 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced. But, sudden rise in net-profit just before IPO and negative cash-flow raises doubts. Company is engaged in the business of marketing and distribution of finished formulations of specialty pharmaceutical products, which is highly competitive business segment. Performance of BRLM is poor post listing. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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