Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Akums Drugs and Pharmaceuticals / Equity Bottom-Up

Akums Drugs and Pharmaceuticals (0200361D IN)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/akums-drugs-and-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:40915:1" rel="noopener">Akums Drugs and Pharmaceuticals (0200361D IN)</a> shares are currently trading below their IPO price post Q2FY25 result announcement. Compared with year-ago quarter, Q2FY25 revenue and adjusted EBITDA declined.</li>
<li>Digging deeper into the seemingly weak Q2FY25 result, we have come across some positive takeaways. With some of the recent developments, the company is well-positioned for long-term growth.</li>
<li>The share price reaction is overdone. Over the last one month, Akums shares gained 6.5% and outperformed most of its domestic peers, as the long-term growth prospect remains intact.</li>
</ul>



Akums Drugs and Pharmaceuticals (0200361D IN) shares are currently trading below their IPO price post Q2FY25 result announcement. Compared with year-ago quarter, Q2FY25 revenue and adjusted EBITDA declined.
Digging deeper into the seemingly weak Q2FY25 result, we have come across some positive takeaways. With some of the recent developments, the company is well-positioned for long-term growth.
The share price reaction is overdone. Over the last one month, Akums shares gained 6.5% and outperformed most of its domestic peers, as the long-term growth prospect remains intact.


Akums Drugs and Pharmaceuticals: Limited Downside Is Seen, Long-Term Growth Story Intact

APAC IPOs & Placements, Aequitas Research

Akshat Shah

APAC 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

SAI Life Sciences / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sai-life-sciences" target="_blank" data-smartkarma-citation="entities:43724:1" rel="noopener">SAI Life Sciences (SAILS12 IN)</a> is looking to raise up to US$360m in its upcoming India IPO.</li>
<li>Sai Life Sciences is a contract research, development and manufacturing organisation providing end-to-end services across drug discovery, development and manufacturing value-chain, for small to global pharmaceutical innovators and biotechnology firms.</li>
<li>We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.</li>
</ul>



SAI Life Sciences (SAILS12 IN) is looking to raise up to US$360m in its upcoming India IPO.
Sai Life Sciences is a contract research, development and manufacturing organisation providing end-to-end services across drug discovery, development and manufacturing value-chain, for small to global pharmaceutical innovators and biotechnology firms.
We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.


Sai Life Sciences IPO - Quick Thoughts on Peer Comp and Valuation

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>There are 19 changes a side for the Nifty200 Momentum30 Index that will be implemented at the close on 30 December. All names are exactly in line with our forecast.</li>
<li>Estimated one-way turnover is 64.9% resulting in a one-way trade of INR 72.7bn (US$857m). There are 18 stocks with over 1x ADV to trade.</li>
<li>The adds have continued to outperform the deletes even after the end of the review period. There could be further upside heading into year-end and implementation of the changes.</li>
</ul>


There are 19 changes a side for the Nifty200 Momentum30 Index that will be implemented at the close on 30 December. All names are exactly in line with our forecast.
Estimated one-way turnover is 64.9% resulting in a one-way trade of INR 72.7bn (US$857m). There are 18 stocks with over 1x ADV to trade.
The adds have continued to outperform the deletes even after the end of the review period. There could be further upside heading into year-end and implementation of the changes.


NIFTY200 Momentum30 Index Rebalance: 38 Changes; 65% Turnover; US$1.7bn Trade

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sai-life-sciences" target="_blank" data-smartkarma-citation="entities:43724:1" rel="noopener">SAI Life Sciences (SAILS12 IN)</a> is looking to raise up to US$360m in its upcoming India IPO.</li>
<li>Sai Life Sciences is a contract research, development and manufacturing organisation providing end-to-end services across drug discovery, development and manufacturing value-chain, for small to global pharmaceutical innovators and biotechnology firms.</li>
<li>In this note, we talk about the company’s historical performance.</li>
</ul>



SAI Life Sciences (SAILS12 IN) is looking to raise up to US$360m in its upcoming India IPO.
Sai Life Sciences is a contract research, development and manufacturing organisation providing end-to-end services across drug discovery, development and manufacturing value-chain, for small to global pharmaceutical innovators and biotechnology firms.
In this note, we talk about the company’s historical performance.


Sai Life Sciences Pre-IPO - Portfolio Expansion and Increased Production Capacity to Drive Growth

<ul>
<li>The IPO of SAI Life Sciences, a contract research, development, and manufacturing organization,  is scheduled to open on December 11. The IPO consists of fresh issue as well as OFS.</li>
<li>Out of the fresh issue of proceeds, the company intends to use INR7.2B for repayment/prepayment of outstanding borrowings. As of September 30, 2024, total outstanding borrowing stands at INR7.6B.</li>
<li>We have high conviction on the growth prospect of SAI Life Sciences. Considering FY25 annualized post-IPO EPS of INR2.69, the company seeks a P/E valuation of 186.9–203.8x. </li>
</ul>


The IPO of SAI Life Sciences, a contract research, development, and manufacturing organization,  is scheduled to open on December 11. The IPO consists of fresh issue as well as OFS.
Out of the fresh issue of proceeds, the company intends to use INR7.2B for repayment/prepayment of outstanding borrowings. As of September 30, 2024, total outstanding borrowing stands at INR7.6B.
We have high conviction on the growth prospect of SAI Life Sciences. Considering FY25 annualized post-IPO EPS of INR2.69, the company seeks a P/E valuation of 186.9–203.8x. 


SAI Life Sciences IPO- Growing and Profitable Business; Aggressive Pricing Limits Upside Potential

India

Divi's Laboratories Ltd. manufactures pharmaceutical products which include generic drugs and their intermediates. The Company also undertakes contract research activities for other pharmaceutical companies.

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Divi's Laboratories (DIVI IN)

Akums Drugs and Pharmaceuticals: Limited Downside Is Seen, Long-Term Growth Story Intact

Akums Drugs shares are trading below IPO price post Q2FY25 results, but the company is well-positioned for long-term growth. Share price reaction...

Tina Banerjee

Sai Life Sciences IPO - Quick Thoughts on Peer Comp and Valuation

Sai Life Sciences is looking to raise up to US$360m in its upcoming India IPO. In this note, we will undertake a quick peer comparison and talk...

Akshat Shah

NIFTY200 Momentum30 Index Rebalance: 38 Changes; 65% Turnover; US$1.7bn Trade

There are 19 changes a side and all names are in line with our forecast. Estimated one-way turnover is 64.9% resulting in a one-way trade of INR...

Brian Freitas

Sai Life Sciences Pre-IPO - Portfolio Expansion and Increased Production Capacity to Drive Growth

Sai Life Sciences is looking to raise up to US$360m in its upcoming India IPO. In this note, we talk about the company’s historical performance.

Akshat Shah

SAI Life Sciences IPO- Growing and Profitable Business; Aggressive Pricing Limits Upside Potential

SAI Life Sciences intends to raise INR9.5B via India IPO. The IPO proceeds will be used for debt repayment. Marquee clientele and diverse portfolio...

Tina Banerjee

Price Gauge

52-week Range

Market Cap (USDm)

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Akums Drugs and Pharmaceuticals: Limited Downside Is Seen, Long-Term Growth Story Intact

​Akums Drugs shares are trading below IPO price post Q2FY25 results, but the company is well-positioned for long-term growth. Share price reaction...

Tina Banerjee

Sai Life Sciences IPO - Quick Thoughts on Peer Comp and Valuation

Sai Life Sciences is looking to raise up to US$360m in its upcoming India IPO. In this note, we will undertake a quick peer comparison and talk...

Akshat Shah

NIFTY200 Momentum30 Index Rebalance: 38 Changes; 65% Turnover; US$1.7bn Trade

There are 19 changes a side and all names are in line with our forecast. Estimated one-way turnover is 64.9% resulting in a one-way trade of INR...

Brian Freitas

Sai Life Sciences Pre-IPO - Portfolio Expansion and Increased Production Capacity to Drive Growth

Sai Life Sciences is looking to raise up to US$360m in its upcoming India IPO. In this note, we talk about the company’s historical performance.

Akshat Shah

SAI Life Sciences IPO- Growing and Profitable Business; Aggressive Pricing Limits Upside Potential

SAI Life Sciences intends to raise INR9.5B via India IPO. The IPO proceeds will be used for debt repayment. Marquee clientele and diverse portfolio...

Tina Banerjee

Akums Drugs shares are trading below IPO price post Q2FY25 results, but the company is well-positioned for long-term growth. Share price reaction...