Highlights
| Issue Size – 112,948,626 shares | Issue Open/Close – 21 Nov / 25 Nov, 2025 |
| Price Band (Rs.) 563 – 593 | Issue Size (Rs.) ~ 8,950 mn |
| Face Value (Rs) 1 | Lot Size (shares) – 25 |
Sudeep Pharma Limited (SPL) incorporate in 1989, engaged in the manufacturing of pharmaceutical excipients, food-grade minerals, and specialty nutrition ingredients serving over 100 countries
The company produces a range of essential mineral salts, including calcium, zinc, iron, and others, used in health, pharmaceutical, and nutritional applications. These minerals function as excipients in drug formulations and as fortifying agents that enhance the nutritional value of foods and supplements.
Company operates 3 manufacturing facilities in Vadodara, Gujrat, with combined manufacturing capacity of 65,579 MT and covering total are of ~45,784 Sq. mt. Company also has a manufacturing facility in Ireland. With focus on research and development company operates 2 R&D facilities with a team of 41 personnel.
Out of the total proceeds from the offer, ~Rs. 758 mn would go towards capital expenditure,~Rs. 192 mn would go towards general corporate purposes. While ~Rs. 8,000 mn would go towards existing selling shareholders of the company.
Key Highlights
- The global demand for food ingredients is expected to grow at a CAGR of 6.5 pct between 2024 to 2029, with demand reaching 580 bn USD in 2029. In terms of volume, the total consumption was around 652,990 kilotons in 2024 and is expected to reach 873,848 kilotons by 2029 with a CAGR of 6.0 pct.
- SPL is a technology led manufacturer of excipients and specialty ingredients for the pharmaceutical, food and nutrition industries, leveraging its inhouse developed technologies for processes such as encapsulation, spray drying, granulation, trituration, liposomal preparations and blending in an effort to drive innovation in its operations.
- As of Q1FY26, SPL has served over 1,100 customers, and built longstanding relationships with marquee customers including Pfizer Inc, Merck Group, Intas Pharmaceuticals Ltd., Mankind Pharma Ltd., Alembic Pharmaceutical Ltd., Aurobindo Pharma Ltd., Cadila Pharmaceutical Ltd., IMCD Asia Pte. Ltd., Micro Labs Limited, and Danone S.A.
- The company’s core strategies include (i) Expand into high-growth businesses (ii) Expand market reach through multiple growth initiatives (iii) Develop customized solutions and enter into strategic partnerships to drive growth (iv) Integrate recently acquired entities and continue evaluating inorganic growth opportunities (v) Enhance manufacturing capabilities.
- Sales of the company has grown by 8.2 pct CAGR over FY23-25 and EBITDA and Profit grew by 46 pct CAGR and 49 pct CAGR over same period. During FY25 the sales of the company jumped by 9.3 pct YoY to Rs. 5,020 mn. While EBITDA of the company grew by 4.6 pct YoY to Rs. 1,900 mn and EBITDA margin expanded by 157bps to 37.8 pct YoY in FY25. During FY25, the company reported profit of Rs. 1,387 mn, which grew 4.1 pct YoY.
Key Risk
- SPL is heavily depended on its domestic suppliers for the raw material with over 80 pct of raw material, top 10 suppliers account for ~60 to 65 pct of total raw material consumed, and disruption or adverse development in the raw material supply could adversely affect business, results of operations, financial condition, and cash flows.
- SPL’s operations are subject to extensive government regulations, and company is required to obtain and maintain a number of statutory and regulatory permits and approvals under central, state and local government rules in India.
Financial Performance
| (In Rs. million, unless otherwise stated) | FY23 | FY24 | FY25 | Q1FY26 |
| Revenue from Operations | 4,287 | 4,593 | 5,020 | 1,249 |
| EBITDA | 891 | 1817 | 1900 | 439 |
| EBITDA Margin % | 20.8% | 39.6% | 37.8% | 35.1% |
| Profit | 623 | 1,332 | 1,387 | 313 |
| Profit Margin % | 14.5% | 29.0% | 27.6% | 25.0% |
| ROE % | 27.9% | 37.4% | 28.1% | 4.5% |
| ROCE % | 29.4% | 41.2% | 29.8% | 5.5% |
Valuation
Sudeep Pharma Limited is a technology-led manufacturer specializing in excipients and specialty ingredients for the pharmaceutical, food, and nutrition industries. Utilizing proprietary technologies, it has developed expertise in encapsulation, spray drying, granulation, trituration, liposomal preparations, and blending. At the upper end of the price of Rs. 593, the issue quotes PE of 54x on FY26 annualized earnings. The issue looks fully priced. Only long-term investors May Subscribe.
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