Akums Drugs & Pharmaceuticals Ltd. share price target

Akums Drugs and Pharmaceuticals (Akums)’s Q1FY26 revenue was muted due to slowdown across verticals; however, better product mix aided gross margin expansion (+170bps YoY).

We recently hosted Akums’ management for a roadshow. Akums has been able to maintain its CDMO and overall EBITDA margin at 15.5%/12.0% despite its sub-par revenue growth in 9MFY25. Further efforts towards curbing losses in API division and new export order (starting CY27) could drive operating leverage and boost margins in coming years.

Akums Drugs and Pharmaceuticals (Akums) in Q3FY25 saw its CDMO business’ volumes recovering (+0.6% YoY). Growth in CDMO should pick up in the next few quarters given Akums’ healthy order book alongside API prices also settling.

Akums Drugs and Pharmaceuticals Limited - IPO Note Issue Snapshot: Issue Open: July 30 August 01, 2024 Price Band: Rs. 646 679 (Discount of Rs 64 per share for all eligible employees) *Issue Size: Up to Rs 1856.7 cr (including Fresh issue of Rs 680 cr + Offer for sale of 17,330,435 eq share including employee reservation of upto Rs.15 cr Reservation for: QIB atleast 75% eq sh Non-Institutional upto 15% eq sh ((including 1/3rd for applications between Rs.2 lakhs to Rs.10 lakhs)) Retail upto 10% eq sh Face Value: Rs 2 Book value: Rs 49.59 (March 31, 2024) Bid size: - 22 equity shares and in multiples thereof 100% Book built Issue

IPO NOTE