Sai Parenteral's Limited

Sai Parenteral's Limited  is a diversified pharmaceutical formulations company with capabilities in research, development and manufacturing. They are in the business of (i) Branded Generic Formulations and (ii) Contract Development and Manufacturing Organisation ('CDMO') products and services for the domestic and international markets. The Company's portfolio includes formulation products across various therapeutic areas like cardiovascular, neuropsychiatry, anti-diabetic, respiratory health, antibiotics, gastroenterology, vitamins, minerals and supplements (VMS), analgesics, and dermatology with offerings across dosage forms such as injectables, tablets, capsules, liquid orals and ointments. In the injectables segment, they have capabilities in sterile manufacturing for critical care and antibiotics, which are delivered through dry powder injections, pre-filled syringes, ampoules, and vials. Company manufactures and sells Branded Generic Formulations to a diverse customer base, including central and state government agencies, pharmaceutical companies, public and private hospitals and super stockists in the domestic market. They export the products to the Regulated and Semi-Regulated Markets of Australia, New Zealand, Southeast Asia, Middle East and Africa through distributors. The Company’s CDMO business includes product development for the customers in the Regulated and Semi-Regulated Markets. The Company, through the wholly owned Singapore subsidiary, Sai Parenterals Pte Limited ('Buyer'), entered into a Share Purchase Agreement dated September 24, 2025 with Noumed Life Sciences Limited (UK) ('NLS') ('Seller'), Mark Thulborne, Jo-maree Delac. The SPA has been entered into to acquire a 74.60% majority and controlling stake in Noumed, including an equity infusion of AUD 4.00 million as a primary in Noumed Pharmaceuticals Pte Ltd, Australia. Noumed Pharmaceuticals Pty Limited ('Noumed'), an Australia based pharmaceutical company engaged primarily in the business of supplying OTC pharmaceutical products to retail pharmacy chains in Australia. Noumed also operates in New Zealand through its wholly owned subsidiary, Noumed Pharmaceuticals Limited, offering both prescription ('Rx') and OTC products, with a focus on securing government procurement contracts through Pharmaceutical Management Agency ('Pharmac') tenders. They own and operate five (5) Manufacturing Facilities in India, out of which four (4) Manufacturing Facilities are based in Hyderabad, Telangana. Unit I is GMP compliant, while Unit II is WHO-GMP certified. Both Unit I and II are dedicated for the manufacturing of injectable formulations. Unit III is a solid oral dosage facility accredited by TGA-Australia and Pharmaceutical Inspection Co-operation Scheme (PIC/S), while Unit IV is a dedicated cephalosporin facility and holds WHO-GMP certification. The wholly owned subsidiary, Revat Laboratories owns and operates a GMP certified unit located at Ongole, Andhra Pradesh ('Revat Unit'). The Manufacturing Facilities are spread across an aggregate area of 1,14,540 sq. ft. and have a combined installed capacity of 1,160 million units per annum on a single shift basis. The manufacturing capabilities includes the production of generics, complex generic products and formulations developed and produced in strict adherence to Good Manufacturing Practices (GMP).  They have developed a diversified portfolio of complex pharmaceutical products, covering both high-value and high-volume categories addressing critical therapeutic needs across multiple disease areas. The key therapeutic areas include cardiovascular, neuropsychiatry, anti-diabetic, respiratory health, antibiotics, gastroenterology, vitamins, minerals and supplements (VMS), analgesics and dermatology products. They have formulation capabilities across a broad range of differentiated dosage forms, including injectables, tablets, capsules, liquid orals, dry syrups and ointments. These capabilities allow to effectively respond to evolving market preferences, regulatory requirements, and patient-centric design standards, while also facilitating therapeutic differentiation and expanding penetration in both domestic and export markets. As per financial performance, Sai Parenteral's Limited has posted total income / net profits of Rs 97.02 Cr / Rs 4.37 Cr (FY23), Rs 155.18 Cr / Rs 8.41 Cr (FY24), Rs 163.74 Cr / 14.42 Cr (FY25) and Rs 89.42 Cr / 7.76 Cr (upto Q2 FY26). So as per previous financials data, company has shown good growth, but trade receivables are around 77% of FY25 total sales. Also net cash flow is negative except FY25. Company has an average EPS of Rs 7.25 and average RoNW of 13.53% for last three fiscals. Issue is priced at a P/BV of 6.91 as per NAV of Rs 56.73/- as on 30.09.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 205.80, 120.04 and 111.53 respectively. As per RHP, comparison between listed peers are shown in the above market. On BRLM's front, Arihant Capital Markets Limited are associated with this IPO, and has handled 5 IPOs in last three fiscal years. ( As on 19.03.26 ) As per financials, Sai Parenteral's Limited has shown good growth, RoNW is 15.09% and P/E is 205.80, 120.04 and 111.53 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks aggressively priced and higher trade receivables and negative cash flow (except FY25) are concerns. Company is a diversified pharmaceutical formulations company with capabilities in research, development and manufacturing, which is highly competitive business segment. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Anil Kumar Karusala
• 2 Vijitha Gorrepati
• 3 Aruna Karusala