Subscribe- Long Term Emcure Pharmaceuticals Ltd; Anand Rathi

Anand Rathi, has come out with its report on Emcure Pharmaceuticals Ltd. The research firm has recommended to “ Subscribe- Long Term” the ipo in its research report as on July 02 2024.

Broker Research

July 02, 2024 / 15:19 IST

IPO

Anand Rathi, IPO report on Emcure Pharmaceuticals Ltd

The Company was incorporated as ‘Emcure Pharmaceuticals Pvt Ltd’ in 1981. Subsequently, the Company was converted into a public company and the name of the Company was changed to ‘Emcure Pharmaceuticals Ltd’, in 2001. Emcure Pharmaceuticals is engaged in developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas. The company is a research and development driven company with a differentiated product portfolio including orals, injectables and biotherapeutics. The company is focused on pharmaceutical products used in chronic (including sub-chronic) therapeutic areas. Emcure Pharmaceuticals is the 13th largest pharmaceutical company in India in terms of Domestic Sales for Moving Annual Total (MAT) FY24, and the 4th largest pharmaceutical company by market share in its Covered Markets in terms of Domestic Sales for MAT FY24. Further, the company is the largest pharmaceutical company in the gynecology and human immunodeficiency virus (“HIV”) antivirals therapeutic areas in India in terms of Domestic Sales for MAT FY24.

Valuation and Outlook

On the valuation front, at an upper band, company is fairly priced at P/E of 36x post issue of equity shares on FY24 earning basis. We believe that the company has a scope of business improvement on the back of industry tailwinds and business scalability. Thus, we recommend an “SUBSCRIBE – long term” rating to the IPO.

For all IPO report, click here