Sudeep Pharma Limited is a technology led manufacturer of excipients and specialty ingredients for the pharmaceutical, food and nutrition industries. Company has established a presence in both, domestic and international markets, including key regions such as the United States, South America, Europe, the Middle East, Africa, and Asia-Pacific. As of June 30, 2025, company has served over 1,100 customers, and have built longstanding relationships with marquee customers including Pfizer Inc, Intas Pharmaceuticals Limited, Mankind Pharma Limited, Merck Group, Alembic PharmaceuticalLimited, Aurobindo Pharma Limited, Cadila Pharmaceutical Limited, IMCD Asia Pte. Ltd., Micro Labs Limited, and DanoneS.A. The largest customer accounted for 14.58%, 8.15%, 9.14% and 11.55% of revenue from operations for the three months ended June 30, 2025 and Fiscals 2025, 2024 and 2023, respectively. The average tenure of the relationship with the five largest customers in terms of revenue from operations for the three months ended June 30, 2025 is 7.08 years as of June 30, 2025. For the three months ended June 30, 2025 and Fiscals 2025, 2024 and 2023, 83.17%, 78.25%, 79.84%, and 62.96%, respectively, of the revenue from operations was generated from repeat business with customers. Company is one of the largest producers of food-grade iron phosphate for infant nutrition, clinical nutrition, and the food and beverage sectors, in terms of production capacity with a combined annual available manufacturing capacity of 72,246 metric tons ('MT'), as of June 30, 2025. As of the same date, one of the Manufacturing Facilities has been approved by the United States Food and Drug Administration ('USFDA') for the manufacture of mineral-based ingredients. They were the only company in India and one of nine companies globally with certification of suitability issued by the Council of Europe ('CEP') and written confirmation certification for sale of calcium carbonate as an active pharmaceutical ingredient ('API') in the European Union as of June 30, 2025. Company has expanded the global presence to around 100 countries, as of June 30, 2025. In order to capitalize on market opportunities and meet the growing demands of local industries, they have established regional sales offices with dedicated teams in key geographies, including the United States, Europe, United Kingdom and Latin America. They have also entered into stocking agreements with third parties to support the international sales, which enable them to expand their market reach and provide localized support to the international customers. Company operates three Manufacturing Facilities in Vadodara, Gujarat, with a combined annual available manufacturing capacity of 65,579 MT and covering a total area of approximately 45,784 square meters, as of June 30, 2025. Further, pursuant to the acquisition of NSS as a Material Subsidiary with effect from May 22, 2025, they also have a manufacturing facility in Ireland. The Manufacturing Facilities hold one or more approvals from USFDA, EXCiPACT, Roundtable on Sustainable Palm Oil, UnitedNations' World Food Program ('WFP'), Food Safety System Certification ('FSSC'), World Health Organisation - Good Manufacturing Practices ('WHO-GMP'), International Organization for Standardization ('ISO'), and Hazard Analysis and Critical Control Points ('HACCP'). As per financial performance, Sudeep Pharma Limited has posted total income / net profits of Rs 438.25 Cr / Rs 62.32 Cr (FY23), Rs 465.37 Cr / Rs 133.18 Cr (FY24), Rs 511.32 Cr / 138.69 Cr (FY25) and Rs 130.07 Cr / 31.27 Cr (Q1 FY26). So as per previous financials data, company has shown steady growth. Company has an average EPS of Rs 11.44 and average RoNW of 30.89% for last three fiscals. Issue is priced at a P/BV of 9.47 as per NAV of Rs 62.61/- as on 30.06.25. 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 50.29, 48.29 and 53.55 respectively. As per RHP, there are no listed peers available in the Indian market as of now. On BRLM's front, ICICI Securities Limited, IIFL Capital Services Limited IPO are associated with this IPO, and has handled 113 IPOs in last three fiscal years. ( As on 18.11.25 ) As per financials, Sudeep Pharma Limited has shown steady growth, RoNW is 27.88% and P/E is 50.29, 48.29 and 53.55 respectively as per FY24, FY25 and annualised FY26 earnings. Company is a technology led manufacturer of excipients and specialty ingredients for the pharmaceutical, food and nutrition industries. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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