Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mankind-pharma-ltd" target="_blank" data-smartkarma-citation="entities:36389:1" rel="noopener">Mankind Pharma</a>  (MP) is now looking to raise around US$500m in its upcoming India IPO.</li>
<li>MP is a pharmaceutical company engaged in developing, manufacturing and marketing a range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.</li>
<li>We have looked at various aspects of the deal in our earlier notes. In this note, we talk about the updates from its recently filed RHP.</li>
</ul>



Mankind Pharma  (MP) is now looking to raise around US$500m in its upcoming India IPO.
MP is a pharmaceutical company engaged in developing, manufacturing and marketing a range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
We have looked at various aspects of the deal in our earlier notes. In this note, we talk about the updates from its recently filed RHP.


Mankind Pharma Pre-IPO - RHP Updates - A Mixed Bag

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mankind-pharma-ltd" target="_blank" data-smartkarma-citation="entities:36389:1" rel="noopener">Mankind Pharma</a> is looking to raise around US$1bn in its upcoming India IPO.</li>
<li>MP is a pharmaceutical company engaged in developing, manufacturing and marketing a range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.</li>
<li>We have looked at the company background and undertaken a peer comparison in our previous notes. In this note, we will talk about valuations.</li>
</ul>



Mankind Pharma is looking to raise around US$1bn in its upcoming India IPO.
MP is a pharmaceutical company engaged in developing, manufacturing and marketing a range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
We have looked at the company background and undertaken a peer comparison in our previous notes. In this note, we will talk about valuations.


Mankind Pharma Pre-IPO - Thoughts on Valuations

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mankind-pharma-ltd" target="_blank" data-smartkarma-citation="entities:36389:1" rel="noopener">Mankind Pharma (6596876Z IN)</a>, India’s fourth largest pharmaceutical company, has filed DRHP for INR55B IPO, which is comprised of an OFS of 40M shares by promoters and existing investors.  </li>
<li>Mankind has 36 pharma brands that have each achieved annual revenue of more than INR500M. 18 of its brands are among 300 top selling brands of the Indian pharma market.</li>
<li>During FY20–22, domestic sales of Mankind had a CAGR of ~16%, which is ~1.5 times that of the Indian pharma market, which grew at a CAGR of ~11%.</li>
</ul>



Mankind Pharma (6596876Z IN), India’s fourth largest pharmaceutical company, has filed DRHP for INR55B IPO, which is comprised of an OFS of 40M shares by promoters and existing investors.  
Mankind has 36 pharma brands that have each achieved annual revenue of more than INR500M. 18 of its brands are among 300 top selling brands of the Indian pharma market.
During FY20–22, domestic sales of Mankind had a CAGR of ~16%, which is ~1.5 times that of the Indian pharma market, which grew at a CAGR of ~11%.


Mankind Pharma (6596876Z IN) Pre-IPO: Solid India-Centric Growth Story Fueled by Marquee Brands

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ajanta-pharma-ltd" target="_blank" data-smartkarma-citation="entities:10053:1" rel="noopener">Ajanta Pharma (AJP IN)</a> has a well-diversified business model in terms of markets and therapies. The company’s largest revenue contributing segment, branded generics is seeing healthy double-digit revenue growth.</li>
<li>Ajanta focuses on limited competition product in US. Going forward, the US business will see accelerated growth, driven by new launches. Ajanta plans to file 10–12 ANDAs during FY23.</li>
<li>Ajanta has taken 1% price increase across all its market, which should drive margin improvement in coming quarters. The company has guided for EBITDA margin of 26–27% for FY23.</li>
</ul>



Ajanta Pharma (AJP IN) has a well-diversified business model in terms of markets and therapies. The company’s largest revenue contributing segment, branded generics is seeing healthy double-digit revenue growth.
Ajanta focuses on limited competition product in US. Going forward, the US business will see accelerated growth, driven by new launches. Ajanta plans to file 10–12 ANDAs during FY23.
Ajanta has taken 1% price increase across all its market, which should drive margin improvement in coming quarters. The company has guided for EBITDA margin of 26–27% for FY23.


Ajanta Pharma (AJP IN): Branded Generics Focus Ensures Consistent Growth

<p>Ipca Laboratories is a fully-integrated Indian generic pharmaceutical company manufacturing both formulations and APIs. The company’s domestic formulation business (contributes 42% of total revenue) is back to its double-digit growth path, driven by its focus on fast growing lifestyle related therapeutic segments, including pain management, cardiovascular, and anti-diabetes. With the recovery of the base business (non COVID portfolio), pain management segment grew 36% y/y and contributed ~49% of domestic formulation business in Q1 FY22. Pent up demand with the declining incidences of the COVID-19 and increasing vaccination in India should lead to volume-driven growth for the domestic formulation business. Management guided for 16–18% y/y growth in domestic formulation segment in FY22, which seems conservative. Ipca Laboratories checks most of the boxes for being considered as a sound investment idea, which include stable sales growth (five-years CAGR of 13%, mainly driven by volume), expanding margins (1,700 basis points margin expansion since FY18), debt-free balance sheet, robust liquidity with cash balance of INR 9 billion, and RONW ratio of 20%+.  The stock is currently trading at a P/E of 30x, which seems reasonable compared to its peers and industry average. Recent correction in the stock is an attractive buying opportunity for the long-term investors.  </p>

Ipca Laboratories is a fully-integrated Indian generic pharmaceutical company manufacturing both formulations and APIs. The company’s domestic formulation business (contributes 42% of total revenue) is back to its double-digit growth path, driven by its focus on fast growing lifestyle related therapeutic segments, including pain management, cardiovascular, and anti-diabetes. With the recovery of the base business (non COVID portfolio), pain management segment grew 36% y/y and contributed ~49% of domestic formulation business in Q1 FY22. Pent up demand with the declining incidences of the COVID-19 and increasing vaccination in India should lead to volume-driven growth for the domestic formulation business. Management guided for 16–18% y/y growth in domestic formulation segment in FY22, which seems conservative. Ipca Laboratories checks most of the boxes for being considered as a sound investment idea, which include stable sales growth (five-years CAGR of 13%, mainly driven by volume), expanding margins (1,700 basis points margin expansion since FY18), debt-free balance sheet, robust liquidity with cash balance of INR 9 billion, and RONW ratio of 20%+.  The stock is currently trading at a P/E of 30x, which seems reasonable compared to its peers and industry average. Recent correction in the stock is an attractive buying opportunity for the long-term investors.  

Ipca Laboratories (IPCA IN): Domestic Business Is the Key Growth Driver

India

Ipca Laboratories Limited operates a pharmaceutical company, which distributes products to over 75 countries worldwide.  The Group's products include finished dosage forms, drug delivery systems, bulk drugs and intermediates.

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Ipca Laboratories (IPCA IN)

Mankind Pharma Pre-IPO - RHP Updates - A Mixed Bag

Mankind Pharma (MP) is now looking to raise around US$500m in its upcoming India IPO. In this note we talk about the updates from its recently...

Sumeet Singh

Mankind Pharma Pre-IPO - Thoughts on Valuations

Mankind Pharma is looking to raise about US$1bn in its upcoming India IPO. In this note, we will talk about valuations.

Sumeet Singh

Mankind Pharma (6596876Z IN) Pre-IPO: Solid India-Centric Growth Story Fueled by Marquee Brands

Mankind Pharma has filed for INR55B IPO, which can be the second largest among Indian healthcare companies. Strong brand positioning is the key...

Tina Banerjee

Ajanta Pharma (AJP IN): Branded Generics Focus Ensures Consistent Growth

Strong presence in high growth Asia and Africa markets ensures healthy revenue growth in mid-term, while US business should be long-term value...

Tina Banerjee

Ipca Laboratories (IPCA IN): Domestic Business Is the Key Growth Driver

Ipca Laboratories is a fully-integrated generic pharmaceutical company. The company is outpacing the broader market due to its focus on fast moving...

Tina Banerjee

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