Oversubscription and listing gains demonstrate investor trust in Emcure's diverse product portfolio and global market reach. However, researchers warned that the pharmaceutical industry's stringent regulatory requirements and potential disruptions in the raw material supply chain necessitate continual monitoring.
"Emcure Pharma's listing performance is positive, in line with pre-listing expectations. The positive investor response and listing gain reflect the company's future potential. However, the highlighted risks in the pharmaceutical industry demand continuous monitoring by investors. Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., advised investors to hold their positions and set a stop loss around 1200.
Analysts believe the company is trading at a reasonable price and offers a unique opportunity to invest in the gynaecology and HIV antiviral therapeutic sectors.
"Emcure Pharmaceuticals has ventured into research, developing, producing, and marketing pharmaceutical products globally across a wide range of therapeutic areas. Considering the company's innovative product line, successful global footprints, and R&D capabilities. Investors may hold the stock after the listing," said Narendra Solanki, Head Fundamental Research - Investment Services at Anand Rathi Shares and Stock Brokers.
The IPO included a new issue of 7.9 million shares worth Rs 800.00 crores and an offer for sale of 11.4 million shares worth Rs 1,152.03 crores. The pharmaceutical company received Rs 582 crore from 48 anchor investors at an upper price of Rs 1,008 per equity share.
Emcure Pharmaceuticals Limited's revenue increased by 11.33 percent in fiscal year 2023-24 (FY24) to Rs 6,715 crore, up from Rs 6,031 crore in FY23. However, the company's profit after tax (PAT) fell by 6.1% to Rs 527 crore in FY24, from Rs 561 crore in FY23.
Emcure Pharmaceuticals, an Indian pharmaceutical firm, develops pharmaceutical medicines in a variety of main therapeutic areas. As of MAT September 2023, Emcure Pharmaceuticals Limited ranked 13th in domestic sales among Indian pharmaceutical businesses and 4th in market share within its covered markets. Furthermore, the company has led in the therapeutic areas of gynaecology and HIV antivirals within the same time span.
