Emcure Pharmaceuticals Limited, a leading pharmaceutical company in India, is launching a mainboard IPO. Here’s a breakdown of key details and analysis to help you make informed investment decisions:

Timeline

IPO Open Date:	July 3, 2024
IPO Close Date:	July 5, 2024
Basis of Allotment:	July 8, 2024
Refunds:	July 9, 2024
Credit to Demat Account:	July 9, 2024
IPO Listing Date:	July 10, 2024

About Company

Emcure Pharmaceuticals Limited is a well-established Indian multinational pharmaceutical company headquartered in Pune, India. They’ve been in operation since 1981, with a strong presence in both domestic and international markets. Here’s a breakdown of their key aspects:

Operations:

• Emcure has a strong manufacturing base in India with 13 manufacturing facilities across the country. These facilities are equipped to produce a wide range of pharmaceutical and biopharmaceutical products.
• They also have a global presence with a reach extending to over 70 countries across the world.

Products:

Emcure manufactures and markets a broad range of pharmaceutical products across various therapeutic areas, including:

• Gynaecology
• Cardiovascular
• Oncology
• Blood Therapeutics
• HIV Antivirals
• Anti-infectives
• Vitamins and Minerals
• They offer formulations in various dosage forms, including tablets, capsules (softgel and hard-gel), and injectables.

Market Position:

• Emcure is a leading player in the Indian pharmaceutical market, ranking 13th largest in terms of domestic sales for the period ending September 2023 (based on unspecified sources).Their diversified product portfolio, strong manufacturing capabilities, and established distribution network contribute to their market position.

Future Outlook:

• The company aims to capitalize on the growth potential of the Indian wire industry, driven by sectors like construction, infrastructure, and power.
• Their new manufacturing facility signifies their commitment to expanding capacity and catering to the rising demand.
• They might explore new markets or product segments for further growth.

Here are some resources to learn more about Bansal Wire Industries Limited:

• Company Website:https://www.emcure.com/
• IPO Prospectus (Once Available): A detailed analysis of the company’s financials, future plans, and risk factors can be done once the IPO prospectus is released. This document will provide valuable insights for investment decisions.o the development of new drugs and technologies, potentially propelling future growth.

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Objective

The Company proposes to utilise the Net Proceeds towards funding the following objects:

• Repayment and/ or prepayment of all or a portion of certain outstanding borrowings availed by the company
• General corporate purposes

POSITIVE

• Established Player: Emcure has a strong presence in the Indian pharmaceutical market with over 30 years of experience.
• Diversified Product Portfolio: They offer a wide range of pharmaceutical products across various therapeutic areas, mitigating risk from fluctuations in any single segment’s performance.
• Research and Development (R&D) Focus: Emcure invests in R&D, potentially leading to future product development and growth.
• Strong Distribution Network: Their established network ensures market reach and product availability.

NEGATIVE

• Valuation: Without a confirmed price band yet, it’s difficult to assess if the IPO is priced fairly. A high valuation might not be attractive for investors.
• Competition: The Indian pharmaceutical industry is highly competitive, with established domestic players and generic drug manufacturers.
• Dependence on a Few Products: A significant portion of Emcure’s revenue comes from a few key products. Over-reliance on these products could pose a risk if they lose market share.

So,how does Emcure Pharma IPO Fare in Terms of Financials ?

Financial Details

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	7,806.16	6,672.53	6,063.47
Revenue	6,715.24	6,031.72	5,918.86
Profit After Tax	527.58	561.85	702.56
Net Worth	2,952.28	2,501.13	1,987.55
Reserves and Surplus	2,722.40	2,293.77	1,791.03
Total Borrowing	2,091.94	2,202.42	2,102.19
Amount in ₹ Crore

FINANCIAL REVIEW

Positives:

• Revenue Growth: There seems to be a steady increase in revenue year-over-year (YoY) between 2022 and 2024, indicating potential sales growth.
• Profitability: Profit After Tax (PAT) fluctuates slightly year-over-year, but a more in-depth analysis is needed to assess profitability trends.

Emcure Pharma IPO Review & Details IPO Valuation :

Earning Per Share (EPS):	29.17 per Equity Share
Price/Earning P/E Ratio:	34.55
Return on Net Worth (RoNW):	16.87%
Net Asset Value (NAV):	₹ per Equity Share

Emcure Pharma IPO – SWOT Analysis

Strengths

• Established Player: Emcure has a strong presence in the Indian pharmaceutical market with over 30 years of experience, fostering brand recognition and customer loyalty.
• Diversified Product Portfolio: They offer a wide range of pharmaceutical products across various therapeutic areas, reducing risk from overdependence on any single segment.
• Research and Development (R&D) Focus: Investment in R&D can lead to future product development, innovation, and a stronger pipeline for sustained growth.
• Strong Distribution Network: Their established network ensures market reach and product availability, facilitating efficient distribution and sales.
• Manufacturing Capabilities: Emcure manufactures active pharmaceutical ingredients (APIs) and branded generic drugs, potentially providing greater control over production costs and quality.

Weaknesses

• Dependence on Few Products: A significant portion of Emcure’s revenue might come from a few key products. Over-reliance on these products could be risky if they lose market share due to competition or generic alternatives.
• Generic Drug Market Pressure: The Indian pharmaceutical industry faces intense competition, particularly in the generic drug segment, where price is a major factor.
• Regulatory Environment: Stringent regulations and price controls by the government can impact profitability margins.
• Limited Patent Portfolio: While they have an R&D focus, the extent of their patent portfolio might be limited compared to some competitors, potentially restricting exclusivity on new drugs

Opportunities

• Growing Indian Pharmaceutical Market: The Indian pharmaceutical market is expected to experience significant growth, driven by rising healthcare awareness, an aging population, and increasing disposable incomes.
• Focus on Specialty Drugs: Emcure can explore expanding its product portfolio into specialty drugs with higher margins and potentially less competition.
• Export Potential: Emcure can leverage its manufacturing capabilities and established network to increase exports to emerging markets.
• Mergers and Acquisitions: Strategic acquisitions can help Emcure expand its product portfolio, enter new markets, or gain access to new technologies.

Threats

• Patent Expirations: Expiration of patents on existing drugs can lead to increased competition from generic manufacturers and potentially lower revenue.
• Government Regulations: Changes in government regulations, pricing policies, or intellectual property laws can impact profitability and market access.
• Clinical Trial Delays: Delays or failures in clinical trials for new drugs can hinder product development and market entry.
• Currency Fluctuations: Fluctuations in exchange rates can impact the cost of imported raw materials and the profitability of exports.

COMPETITIVE ANALYSIS: MARKET PEERS

Here are some of the key market peers of Emcure Pharma IPO :

Peers:

• Dr. Reddy’s Laboratories Ltd.
• Sun Pharmaceutical Industries Ltd.
• ** Cipla Ltd.**

Emcure Pharma IPO GMP

• Grey market premium as on DD-MM-YYYY = Rs / Share

Disclaimer:

• IPO Grey Market Premium (Emcure Pharma IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Emcure Pharma IPO

🔴 Live Subscription Status 🔴

05/07/2024 5:00 PM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)	37,62,896	0.00	1.00	195.83
Non Institutional Investors(NIIs)	29,49,523	1.40	13.67	48.28
Retail Individual Investors(RIIs)	68,82,219	1.01	3.43	7.18
Employee	1,08,900	1.80	4.83	8.80
Total	1,37,03,538	0.82	4.98	67.84

FINAL TAKEAWAY

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