In today’s briefing:
- Akums Drugs and Pharmaceuticals IPO – RHP Updates & Quick Thoughts on Peer Comp and Valuation
- Pullback Underway; Getting Defensive; Long-Term RS Bottoms for Defensives Is a Reason for Caution
- Akums Drugs and Pharmaceuticals IPO: Subscribe on Favorable Industry Tailwind and Reasonable Pricing
- EQD | WHAT IF The NIFTY Starts to Pullback This Week?
Akums Drugs and Pharmaceuticals IPO – RHP Updates & Quick Thoughts on Peer Comp and Valuation
- Akums Drugs and Pharmaceuticals (0200361D IN) is looking to raise up to US$222m in its upcoming India IPO.
- Akums Drugs and Pharmaceuticals (ADP) is a pharmaceutical contract development and manufacturing organization (CDMO) offering a comprehensive range of pharmaceutical products and services in India and overseas.
- In our previous note, we talked about the company’s historical performance. In this note, we talk about its RHP updates and share our quick thoughts on peer comparison and valuation.
Pullback Underway; Getting Defensive; Long-Term RS Bottoms for Defensives Is a Reason for Caution
- Our long-term bullish outlook (since early-November 2023) remains intact. With that said, we believe a 1-3-month pullback has likely begun.
- Supports to watch are at $110 on MSCI ACWI (ACWI-US) and $41-42 on MSCI EM (EEM-US), and whether these levels hold or not will determine the severity of the pullback.
- The S&P 500 is violating its 20-day MA, Europe’s EURO STOXX 50 is breaking below 4884, and Japan’s TOPIX appears to be staging a false breakout at the 2800-2815 level
Akums Drugs and Pharmaceuticals IPO: Subscribe on Favorable Industry Tailwind and Reasonable Pricing
- Akums Drugs and Pharmaceuticals, the largest India-focused CDMO, has set price band of Rs 646–679/share for its upcoming IPO. The company has blue chip and sticky clientele.
- The Indian domestic CDMO market is forecasted to grow at a CAGR of 14.3% during FY24–28, nearly doubling its historical growth rate.
- Akums seeks a P/E valuation of 28.7–30.2x, which seems to be reasonable compared with listed peers.
EQD | WHAT IF The NIFTY Starts to Pullback This Week?
- The NIFTY Index defied gravity and kept rallying higher for the past 8 weeks. According to our models it’s massively OVERBOUGHT and has been so for a while.
- While many other Asian markets have pulled back decisively, the NIFTY is just going higher and higher.
- Assuming it has its own uncorrelated drivers, where would it be a BUY again, if it pulls back this coming week? Let’s discuss this in this WEEKLY insight.
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