Subscribe for Long Term Emcure Pharmaceuticals Ltd; Motilal Oswal

Motilal Oswal, IPO report on Emcure Pharmaceuticals Ltd

13th largest Indian Pharma company with strong position in many Therapeutic Areas: Emcure Pharma, 13th largest in India in terms of MAT FY24 domestic sales, is present in major therapeutic areas across Chronic & acute. It is largest in gynecology and HIV market in India. It has a proven track record with 26 brands having domestic sales of >₹500mn for FY24. Six of its brands is ranked among 300 highest selling brands in IPM, while 16 of top 20 brands were each ranked among three highest selling brands in their respective areas in Indian Pharmaceutical Market (IPM).

Valuation and Outlook

The IPO is reasonably priced at 36.1x FY24 P/E (on diluted basis). We believe commencement of new capacities and potential debt reduction post-IPO would aid recovery in profitability. Recommend Subscribe for Long Term.