Supriya Lifescience Ltd. share price target

SUPRIYA revenue beat our estimates significantly due to strong growth in Analgesic segment and regulated markets. EBITDA and Adj. PAT exceeded our estimates significantly due to better-than-expected gross profit, and lower than expected operating expenses.

Supriya Lifescience revenue slightly missed (-1.2%) our estimate. However, EBITDA and PAT beat our estimates significantly due to lower-than-expected operating expenses, better product mix and better geographical mix.

Supriya Lifescience’s revenue was in-line with our estimate. EBITDA beat our estimate due to lower-than-expected cost of goods sold and operating expenses.

Supriya Life science's revenue beat our estimate (+5.8%) due to growth in Vitamin and Anti-Histamine segment. The EBITDA beat our estimate (+22.4%) due to lower-than-expected employee expenses, and lower-than-expected other expenses.

For Q3FY24, SUPRIYA’s revenue grew by 33.2% YoY and stayed flat for QoQ at INR 1,401 Mn, while for 9MFY24, revenue grew by 29.3% YoY to INR 4,122 Mn. The Q3FY24 revenue growth was driven by analgesic/anti-pyretic/anaesthetic (49.0% of revenue in Q3FY24, +157.8% YoY), vitamin (14.0% of revenue, +14.0% YoY) and Anti-malarial (2.0% of revenue, +28.9% YoY), which was partially offset by anti-asthma (7.0% of revenue, -50.5% YoY), anti-Histamine (15.0% of revenue, -27.1% YoY) and anti-allergic (5.0% of revenue, -36.8% YoY). Geographically, Europe (42.0% contribution to Q3FY24 revenue vs 26.0% in Q3FY23) led the top-line momentum; Asia’s revenue contribution decreased to 42.0% from 50.0% in Q3FY23.

SLL has a niche product basket of 38 APIs with presence in therapeutic areas of Analgesics, Anti-histamine, vitamins, anti-asthmatics, anti-allergic and anti-malarial. The company has tied up with
Kalinga Institute of Technology for development of GelHeal and Quickblue Oral Kit.

For Q2FY24, Supriya Lifescience's revenue grew 24.9% YoY and 6.1% QoQ to INR 1,401 Mn, while for H1FY24, revenue grew 27.4% YoY to 2,721 Mn. In terms of revenue break up, analgesic/anti-pyretic/anesthetic (56.0% share in Q2FY24) grew by 29.9% YoY, anti histamine (2.0% share in Q2FY24) grew by 21.8% YoY, vitamin (11.0% share in Q2FY24) grew by 26.3% YoY, anti-asthma (10.0% share in Q2FY24) grew by 26.2% YoY, anti-allergic (8.0% share in Q2FY24) grew by 31.9% YoY, anti-malarial (2.0% share in Q2FY24) grew by 3.8% YoY, and others (11.0% share in Q2FY24) grew by 3.4% YoY.

Supriya Life Science reported a quarterly revenue growth of INR 1422.7 mn in Q4FY23, compared to INR 1051.0 mn in Q3FY23. The growth was primarily supported by strong traction in the US, Europe, and Latin America markets. Therapies such as Anti Anesthetic, Anti-Allergic, and Asthmatic played a key role in driving this growth.

Supriya Life Science’s revenue has significantly declined in Q3FY23. The revenues stood at INR 1051.4mn against INR 1120.0mn in Q2FY23. The operating revenue for the 9 months was INR 3186.0mn Vs INR 3418.0mn in 9MFY22. During the quarter, the company's revenue was impacted by a slowdown in demand in a key market, namely China, as well as lower offtake for key products.

During Q2FY23, Supriya Lifescience Ltd (SLL) reported Revenue of INR 1,120 Mn (-25.33% YoY / +10.89% QoQ). Such growth was mainly driven by strong sales from Analgesic/Anestetic segment which contributed 56% to the topline against 36% in same period last year.

During Q1FY23, Supriya Lifescience Ltd (SLL) reported Revenue of INR 1,037 Mn (+31.43% YoY / -43.98% QoQ).

Supriya has been the largest exporter of Chlorpheniramine Maleate and Ketamine Hydrochloride from India, contributing to 45-50% and 60-65%, respectively, of the API exports from India, between FY17 and FY21. SLL is among the largest exporters of Salbutamol Sulphate in India contributing to...

Supriya Lifescience is one of the key Indian manufacturers and suppliers of active pharmaceuticals ingredients (APIs), with a focus on research and development. As of October 31, 2021, company have niche product offerings of 38 APIs focused on diverse therapeutic segments such as antihistamine, analgesic,...

Public issue of 2,55,47,445 Equity shares of Face value Total Public 2 each, (Comprising of fresh issue of 72,99,270 Equity Shares* (Rs. 200 cr.) and Offer for Sale of 1,82,48,175 Equity Shares* (Rs. 500 cr.) by Selling Shareholder)....

IPO NOTE

Supriya Lifescience Limited was incorporated in March 2008 by Satish Waman Wagh. Company is one of the key Indian manufacturers and suppliers of active pharmaceutical ingredients (APIs). Supriya Lifescience Limited focus on research and development along with this company focus is on diverse therapeutic areas and niche products. Company has niche product offerings of 38