Business Overview
Incorporated in 2017, the company identifies, develops and commercialises speciality and complex niche products in mid-market range. It also undertakes contract manufacturing for its customers. It earns through in-licensing fee, transfer pricing and profit sharing. Over 60% of its revenues come from supplying to regulated markets of the US, Canada and the UK and 32% from emerging markets.
Financials & Growth Prospects
Two acquisitions-Havix and Ratnatris-integrated during FY24. While the company’s revenues and net profit for FY24 stood at ₹214 and ₹24.9 crore respectively, the same for six months ended September 2024 stood at ₹181 crore and ₹24 crore respectively. The Ebitda margin too improved from 20.7% to 26% during the same period.
Senores intends to significantly enhance market presence in North America and launch products with potential of NDA approval in the US.
Valuations & Risk Factors
At an implied market cap of around ₹1,800 crore, the IPO values the company at five times its annualised revenues for FY25 and 37.6 times its annualised earnings for FY25. These are aggressive valuations for a small company with a differentiated business model in the high-clutter pharma sector. Long-term investors interested in a niche pharma company can consider investing in the issue bearing the risk that the company may not be able to maintain the strong growth momentum seen in the first half of FY25.
