Supriya Lifescience Ltd (SSL), incorporated on 26th March 2008, is one of the key Indian manufacturers and suppliers of active pharmaceuticals ingredients (API), focusing on research and development. As of October 31, 2021, SSL has niche product offerings of 38 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and antiallergic. SSL is the largest exporter of Chlorpheniramine Maleate and Ketamine Hydrochloride contributing to 45-50% and 60-65%, respectively, of the API exports from India, between FY17 and FY21. Additionally, SSL is among the largest exporters of Salbutamol Sulphate in India contributing to 31% of the API exports from India in FY 2021 in volume terms.
Valuation and OutlookHence, we assign a “Subscribe” rating for the issue on a short to long term basis considering its strong financial performance both topline and bottom-line, improving margins, Export exposure, capacity expansions and increased penetration to regulated markets.
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