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BACKGROUND

Corona Remedies Ltd is an India-focused branded pharmaceutical formulation company engaged in developing, manufacturing and marketing products in women’s healthcare, cardio-diabeto, pain management, urology and other therapeutic areas. Based on the MAT Jun’25 data, Therapeutic area-wise ‘Women’s healthcare’ contributed ~29% of company’s revenue followed by Cardio-Diabeto, Pain management and Urology with 23% / 12% / 4% of revenue respectively. Segment wise, Chronic and sub-chronic segment accounted for 70% of its revenue and remaining 30% from Acute segment.

Details of the Issue:

* Total issue is worth INR 655 Cr, which is a complete Offer for sale by promoter group and investor selling shareholders.

Investment Rationale:

* Growth engine: differentiated brands + successful launches

* Branding and Niche Focus at the Core of Driving Business Growth

* Integrated Growth Strategy and Execution

Valuation and Recommendation:-

Corona Remedies has consistently outperformed the Indian Pharmaceutical Market (IPM) by maintaining a sharp focus on selected therapy areas, strengthening its fieldsales capabilities, and achieving a higher success rate in new product launches compared to industry peers. The company’s revenue grew at 16% CAGR between FY23-25, which was largely driven by high value chronic segment and robust growth in its acquired brands. Its limited exposure to regulated pricing and an expanding, scalable commercial model further enhances earnings visibility. Together, these factors augur well for Corona Remedies in the domestic formulations space, supported by rising Medical Representative (MR) productivity, a robust product pipeline and continued extension of its distribution footprint. In FY25, company’s return ratios reported strong levels with ROE and ROCE at 24.6% / 30.1%, respectively. The issue is valued at 43.6x to FY25 EPS and 35x to Annualised Q1FY26 EPS, which looks attractive compared to industry peers (Avg 49.7x FY25 EPS) in view of its strong growth outlook and resilience in sustaining margin profile. Thus, we recommend SUBSCRIBE to the issue.

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SEBI Registration number is INH00000176