Ranvir’s Portfolio

Innova Captab –

Q2 FY 25 concall and results highlights –

Revenues – 294 vs 233 cr
EBITDA – 44 vs 32 cr, up 36 pc ( margins @ 16 vs 14 pc )
PAT – 29 vs 17 cr, up 67 pc

Breakup of sales in Q1 FY 25 vs Q1 FY 24 –

CMO – 57 vs 71 pc
Domestic branded sales – 17 vs 18 pc
International branded sales – 11 vs 11 pc
Sharon Bio’s sales – 15 pc vs NIL

14 out of top 15 domestic Pharma companies are company’s clients

Company’s manufacturing units –

02 @ Baddi – can make – tablets, capsules, ointments, syrups, dry powder injections, liquid orals. Capacity utilisation @ 50 pc

01 @ Dehradun – tablets, capsules
01 @ Taloja – APIs
Both Dehradun and Taloja units are acquired units of Sharon Bio. Capacity utilisation at both these units is around 60 pc

New Greenfield unit coming up at Jammu – Multiple products. Likely to go live in Q2 FY 25. Full capacities to ramp up over a period of 2-3 yrs. Its a formulations plant mainly focussed on – Cephalosporins, Penicillin, Carbapenems product families. To make dosage forms like – tablets, capsules, dry powder injectables, dry syrup and respiratory respuels

Jammu facility has a peak revenue potential of > 1500 cr / yr. Likely to be achieved within 5 yrs. Expect to do > 300 cr sales from this plant in FY 26. Should be able to ramp up sales to 900 cr from this plant by FY 28

Company has 01 R&D center at Baddi. Setting up another one @ Panchkula

API prices continue to be soft – both for acute and chronic APIs. At present, company is procuring 70-80 pc of its API requirements from domestic sources. As PLI schemes for the API sector show full effects, company’s domestic sourcing may even go higher going fwd

Company’s margins in domestic + international branded business are > CMO business. However, company has no plans to dramatically change its business mix. They aim to keep growing all their businesses at healthy rates

As the Jammu plant ramps up, company expects to double its revenues and profits in next 3 yrs

Company’s domestic branded formulations are sold under the brand umbrella – ” Univentis Medicare “

As the GoI keeps imposing / being strict on implementation of GMP guidelines iro various Pharma manufacturing units, the organised + compliant players stand to benefit. Its a natural tailwind for the company

In FY 26, if Jammu plant clocks 300 cr sales and company’s base business grows by early teens ( say 13 – 15 pc )- as guided by the management, the total business may grow by > 35 pc !!!

For FY 25, growth should be > 15 pc with similar margins as last FY

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation