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Incorporated in 2008, Supriya Lifescience Limited is an Indian manufacturers and suppliers of active pharmaceuticals ingredients (“APIs”). As of October 31, 2021 company produces 38 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anesthetic, vitamin, anti-asthmatic and anti-allergic. The company has been the largest exporter of Chlorpheniramine Maleate and Ketamine Hydrochloride from India between Fiscal 2017 and 2021. The company is also one of the largest exporters of Salbutamol Sulphate from India in FY 2021 in terms of volume. Company’s pharmaceutical business is organized into domestic and export sales, according to the geographies in which it operate.

* In Fiscal 2021, the company's products were exported to 86 countries to 1,296 customers including 346 distributors. The company has API business in Europe, Latin America, Asia, and North America.

* The company's manufacturing facility has received approvals from USFDA, EDQM TGA-Australia, KFDA-Korea, PMDA Japan, NMPA (previously known as SFDA) China, Health Canada, in relation to API products being exported to the relevant jurisdictions by the company.

* Supriya Lifescience has a modern manufacturing facility in Maharashtra spread across 23,806 sq. mts, having a reactor capacity of 547 KL/ day including 7 clean rooms. The company has also acquired a plot of land, admeasuring 12,551 sq. mt, near the present manufacturing facility, to expand its manufacturing infrastructure.

* Company has a DSIR approved R&D facility in Parshuram Lote, Maharashtra. Its R&D efforts are primarily focused across the value chain of API process development. As on October 31, 2021, it had a team of 23 scientists.

Outlook & Valuation:

In the last 3 years, revenue for the company has grown from Rs 285.86 cr to Rs 396.22 cr over the period of FY19 to FY21. During the same period, profit has grown from Rs 39.42 cr in FY19 to Rs 123.82 cr in FY21. The company has seen its margins increase by 850 basis points in the past year. This industry has become a darling among investors. It is one of the key Indian manufacturers and suppliers of active pharmaceutical ingredients (APIs), with an emphasis on research and development where they plan to expand their business and overall presence in the market. Despite a dip in the margin in H1FY22, the China+1 factor seems to be working pretty well. At a PE of 16.71x to its annualized earnings of H1FY22, the IPO is attractively priced for investors. Thus we assign a "SUBSCRIBE" rating to the IPO only for LISTING GAIN only.

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