Sudarshan Pharma Industries IPO Review

Sudarshan Pharma Industries IPO Review

Sudarshan Pharma Industries Limited has a contract manufacturing facility to source and supply generic formulations. This is mainly Mumbai based company. The article contains Sudarshan Pharma Industries IPO Review.

Sudarshan Pharma Industries Issue Details :

  • IPO Opens on – June 12, 2019
  • IPO Closes on – June 17, 2019
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs. 75 Per Equity Share.
  • Issue Type – Fixed Price Issue IPO.
  • Market Lot – 1600 Shares.
  • Minimum Order Quantity – 1600 Shares.
  • Issue Size – 3,440,000 Eq Shares of Rs 10 (aggregating up to Rs 25.80 Cr).
  • Listing Exchange – NSE SME Exchange.
  • Draft Prospectus – Click Here

Objectives of the issue of the Company :

  • To set up a dedicated manufacturing facility for Pharmaceutical Business of Sudarshan Pharma Industries Limited.
  • Distribution and Warehousing Centre’s and Purchase of Corporate Office of this company.
  • Additional Working Capital of Sudarshan Pharma Industries Limited.
  • General Corporate Expenses of this company.
  • To meet the expenses of the Issue of Sudarshan Pharma Industries Limited.

About The Company –

  • Sudarshan Pharma Industries Limited was incorporated in 2008.
  • This company is also engaged in import and export activities, and supply of specialty chemicals, API (Active Pharmaceutical Ingredients), and Intermediates.
  • Based on clients’ specifications and requirements, Sudarshan Pharma Industries Limited (SPIL) outsource the manufacturing facility from the suppliers in India and abroad.
  • The generic products supplied by this company have a wide application in paint, food, pharma, and adhesive industry.
  • Sudarshan Pharma Industries Limited (SPIL) is involved in a contract manufacturing facility, supply and outsource of medicines and pharma formulation to hospitals, NGO, government and healthcare institutes.
  • This company has 50 pharma formulations which are supplied under the brand name in the form of tablets, ointment, capsules, and injectable.
  • Sudarshan Pharma Industries Limited has its own sales force and distribution network in 5 states for ethical marketing of pharmaceutical formulation and products under the brand name in Indian and international markets.
  • This company also offers formulation development and QC services and provides customised solutions.

List of Products :

Specialty Chemicals and Performance Chemicals :

  1. Oxy strong.
  2. Potassium carbonate powder Fine Grade and Purity.
  3. PEG 400 Special Grade.
  4. Octanol (Deformer).
  5. 2-methyl THF.
  6. TETRA BUTYL AMMONIUM BROMIDE.
  7. Alpha Methyl Styrene.

Intermediates :

  1. 4 TRI FLUORO METHYL BENZYL ALCOHOL
  2. 2 chloro benzoic acid
  3. 1,6-Hexanol
  4. 2,6-dichloro benzaldehyde
  5. 2-Isopropoxyethanol
  6. 3-Fluoro-4-morpholino aniline
  7. 5,6-Dihyro -4H-6-methyisolthienol [2,3-b]-thiopyran-4-one (Dorz-V)

API :

  1. Pantoprazole Sodium, USP/Ph. Eur.
  2. Doxycycline, USP/Ph. Eur
  3. Celecoxib (In-House)
  4. Glimepride
  5. Carbocisteine BP, EP
  6. Ritonavir, USP (Form-1)
  7. Levomilnacipra Hydrochloride
  8. Nebivolol Hydrochloride
  9. Aceclofenac IP/BP
  10. Levocetirizine Dihydrochloride
  11. Fluconazole USP
  12. Mesalamine
  13. Linezolid
  14. Sevelamer Hydrochloride
  15. Entecavir
  16. Cilnidipine
  17. Torsemide
  18. Bupropion Hcl

LOCATION :

Head Office
301,3rd Floor, Aura Biplex
Landmark Kalyan Jewellers, S V Road,
Borivali (West). Mumbai – 400 092.
Telephone : +91 22 42221111
Email id : [email protected], [email protected], [email protected], [email protected]

The promoter of Sudarshan Pharma Industries Limited :

  • Mr. Hemal V. Mehta, aged 41 years, is the Promoter and Managing Director of this Company.
  • Mr. Sachin V. Mehta, aged 34 years, is the Promoter and Executive Director of this Company.

The Board of Directors of this company :

  • Mr. Hemal V. Mehta, aged 41 years, is the Managing Director of this company.
  • Mr. Sachin V. Mehta, aged 34 years, is the Joint Managing Director of this company.
  • Mr. Chetan K. Mehta, aged 47 years, is the Executive Director of this company.
  • Mrs. Ujwala V. Salvi, aged 48, is the Independent Non-Executive Director of this company.
  • Mr. Hetang A. Shah, aged 46 years, is an Independent Non-Executive Director of this company.
  • Mr. Sandeep R. Mehta, 34 years, Independent Non-Executive Director of this company.

Competitive Strengths of Sudarshan Pharma Industries Limited :

  • Experienced Promoters and Management Team.
  • Scalable Business Model.
  • Wide and diverse range of product offerings.
  • Strategic Location of Manufacturing Units.
  • Strong sales, marketing and distribution capabilities.

SWOT Analysis of this Company :

  • Strengths :
  1. Quality and Innovative product gives a market edge for most of the suppliers.
  2. Reliable Contact Manufacturing and sourcing of Formulation, API and drugs.
  3. Rising Demand for API and Formulation.
  4. Competitive edge in terms of quality and bidding.
  5. Good marketing and distribution network.
  6. Vast Experience of Promoter in the Field.
  • Weaknesses :
  1. Dependent upon growth in Pharma and API industry and competition from China and International suppliers.
  2. The requirement of Finance to cater to at a national level.
  3. Limited market share and presence in a few segments.
  4. Customers supply door to door on a national level.
  5. Competitors can offer similar products quickly
  • Opportunities :
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  1. Growing acceptance by consumers of new and innovative formulation and awareness.
  2. Rising in demand for products in emerging areas and export.
  3. Growing E-commerce and Online sale enabling to cater on a national level easily.
  4. Huge demand for the development of special products suitable for Pharma and API.
  • Threats :
    null
  1. Changes in government policies.
  2. Fluctuations in raw material prices.
  3. Rising labour wages.
  4. Change of behaviour of consumer demand.
  5. Increase in Input cost can cause upward pricing.
  6. Too many players entering and exiting the market

Business strategies of this company :

  • Focus on increasing their global sales :

Sudarshan Pharma Industries Limited has focused on the direct export of their Specialty Chemicals and Pharma Products. This company have exported one consignment of Specialty Chemicals (Sodium Acetate Trihydrate) to Australia. Sudarshan Pharma Industries Limited expect more orders in the future. To develop their export operations, their are in the process of applying for formulation registrations of this company’s pharmaceutical products in MINA and African market. The product registrations will boost their exports and business operations.

  • Increasing Operational efficiency :

Sudarshan Pharma Industries Limited will continue to invest in increasing their operational efficiency throughout the organisation. Higher operational effectiveness results in greater production volumes and higher sales, and therefore allows us to spread fixed costs over a higher number of units sold, thereby increasing profit margins.

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  • Broaden and Deepen presence in the existing product portfolio :

Sudarshan Pharma Industries Limited intend to continue consolidating their position in their key therapeutic areas for the domestic markets such as AntiInfective, Gastrointestinal, Anti-Allergic, Anti-Histamines, Iron Deficiency –Anemia (IDA), Treatment of Infertility and Respiratory Diseases. For exports, this company’s aim to pursue therapeutic areas such as Anti-Cancer, Gastrointestinal, Antibiotics, Anti-allergic, Nutraceuticals and Ayurvedic formulations.

  • Increase by targeting unexplored markets :

Sudarshan Pharma Industries Limited want to obtain approvals for launching their newer products in the Africa, South-East Asia and MENA region. This company’s growth strategy will vary from country to country depending on applicable regulatory norms. The commercialisation of products under registration will add to the growth.

  • Expand their scope by adding more products :

Sudarshan Pharma Industries Limited currently manufacture, market and sell different therapeutic segments like Analgesics, Antipyretic, Neurotonics, Antibiotics (Cephalosporins, Carbapenems and Beta Lactum range) Anti Diabetics, Antifungal, Multivitamins and Steroids and SCs products like Dyes and Pigments, Polymers and additives, Water Chemicals, Textile Chemicals and Surfactants. With their current and proposed products, we plan to increase their product range further and thus cater to more specific segments while enhancing their reach to diversified customers.

Company Financials :

Sudarshan Pharma Industries IPO Review

The above statement is the financial record of the company. Here, the annual profit-loss statement is being reflected. As per the DRHP record, the company has earned highest profit in the financial year 19. According to the year, 2018, basic and diluted eps(earnings per share) is 2.90. Based on 2017-18 basic and diluted EPS, P/E ratio is 25.86. RoNW(return on net worth) is 56.13 and NAV/Share is 18.10 respectively. Therefore, Sudarshan Pharma Industries IPO Review carries a NEUTRAL view. Investors may try it for a long-term view.

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