At a Glance
Senores Pharma is a newly listed generic drug company targeting regulated markets like the US and UK. It has posted 200%+ 3-year revenue CAGR, bought 14 ANDAs from Dr. Reddy’s, and is investing heavily in API facilities. But with ROE stuck at 11% and cash flow negative, are they scaling smart or overdosing on ambition?
1. Introduction with Hook 🔥
If Sun Pharma is the dad and Divi’s Labs is the elite cousin, then Senores Pharma is the new-age tech bro in a lab coat.
Listed in 2024, it’s already acquiring FDA-approved products like they’re Pokémon cards — Enalapril, Tramadol, Topiramate, Metoprolol…
But does buying approvals equal sustainable profits? Or is this another IPO baby that needs more than booster shots to survive?
2. WTF Do They Even Do? 🧩
Senores makes:
- Complex generics across oral solids, liquids, and critical-care injectables
- Focuses on regulated markets – US, Canada, UK
- Recently commissioned two API facilities in Gujarat
- Also owns US subsidiaries (Senores Inc, Havix Group Inc)
- Acquired 18+ ANDAs in 2024–25, funded by IPO cash
They’re basically building a small-cap Indian Teva — minus the lawsuits (for now).
3. Financials Overview – Profit, Margins, ROE 💸
| Metric | FY22 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 14 | 215 | 398 |
| Net Profit (₹ Cr) | 1 | 33 | 58 |
| OPM (%) | 14% | 19% | 23% |
| ROE (%) | – | 10.3% | 11.8% |
- Explosive topline growth (3Y CAGR = 204%)
- Bottomline is scaling, but return ratios still tepid
- FY25 net profit includes ₹19 Cr in other income = 👀
4. Valuation – Is It Cheap, Meh, or Crack? 🧠
- CMP: ₹587
- EPS (FY25): ₹12.72
- P/E: 46.4x
- P/BV: 3.44x
🎯 Fair Value Range: ₹400–₹480
➡️ Based on 30–35x FY26E EPS (assume ₹14–₹16) — generous for a fresh pharma midcap.
Right now, you’re paying like it’s a Zydus meets Gland hybrid. Reality? Too early to tell.
5. What’s Cooking – News, Triggers, Drama 🍿
🔥 14 ANDAs acquired from Dr. Reddy’s in March 2025
💊 3 new US ANDAs from Wockhardt (May 2025)
🏭 Second API plant launched in Gujarat (Feb 2025)
🇺🇸 Capital infused into US subsidiaries ($1.7M+ in Q4FY25)
🧾 Corporate guarantee issued for ₹40 Cr to related entity
🩺 Tramadol, Topiramate, Roflumilast — all launched or approved in Q1
They’re on an aggressive buying spree. But do they have the bandwidth to sell?
6. Balance Sheet – How Much Debt, How Many Dreams? 🏗️
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹10 Cr | ₹31 Cr | ₹46 Cr |
| Reserves | ₹36 Cr | ₹174 Cr | ₹740 Cr |
| Borrowings | ₹63 Cr | ₹258 Cr | ₹315 Cr |
| Total Assets | ₹131 Cr | ₹622 Cr | ₹1,227 Cr |
- Net worth multiplied 20X in 2 years
- Debt rising, but manageable (~0.42x D/E)
- Balance sheet funded by IPO (not shady)
7. Cash Flow – Sab Number Game Hai 💵
| Year | CFO (₹ Cr) | Capex (₹ Cr) | FCF |
|---|---|---|---|
| FY24 | -₹20 Cr | -₹54 Cr | -₹74 Cr |
| FY25 | -₹46 Cr | -₹429 Cr | -₹475 Cr |
- Negative CFO for two years running
- FY25: Massive API capex spree
- R&D, ANDA buys, and working capital are bleeding cash
This is not burn baby burn. It’s borrow, dilute, and expand.
8. Ratios – Sexy or Stressy? 📉
| Ratio | FY24 | FY25 |
|---|---|---|
| ROCE | 12% | 11% |
| ROE | 10.3% | 11.8% |
| OPM | 19% | 23% |
| CCC (Days) | -70 | 92 |
| Debtor Days | 191 | 114 |
⚠️ Working capital days increased from 181 → 220
✅ Debtor days improved a lot (177 → 114)
⚠️ Cash cycle flipped to positive — inventory ramp-up?
9. P&L Breakdown – Show Me the Money 💰
| FY | Sales (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY22 | 14 | 2 | 1 |
| FY24 | 215 | 42 | 33 |
| FY25 | 398 | 90 | 58 |
✅ Revenue nearly 30x in 3 years
✅ EBITDA margin rising (14% → 23%)
⚠️ But PAT includes high other income
10. Peer Comparison – Who Else in the Game? 💊
| Company | P/E | ROE (%) | OPM (%) | Market Cap (₹ Cr) |
|---|---|---|---|---|
| Sun Pharma | 35x | 16.8 | 28.8 | 4,00,000+ |
| Zydus Life | 21x | 21.3 | 30.3 | 98,000 |
| Mankind | 52x | 16.8 | 24.7 | 1,04,000 |
| Senores | 46x | 11.8 | 23.0 | 2,706 |
- Valuation not unreasonable compared to peers
- But those peers have 10x scale, cash flow, and brand recall
11. Miscellaneous – Shareholding, IPO Moves, Red Flags? 🚩
| Holder | Dec 2024 | Mar 2025 |
|---|---|---|
| Promoters | 45.77% | 45.78% |
| FIIs | 4.25% | 4.17% |
| DIIs | 11.77% | 9.66% |
| Public | 38.2% | 40.4% |
🔻 DIIs trimmed holding, public added more
✅ No excessive pledging or promoter drama
🚨 Related-party guarantee for ₹40 Cr to Ratnatris – needs watching.
12. EduInvesting Verdict™ ⚖️
✅ Insane growth from ₹14 Cr → ₹398 Cr in 3 years
✅ Asset-heavy expansion = long-term potential
✅ US-focus, complex generics, FDA pipeline = right strategy
❌ No dividend, no FCF, high capex burn
❌ Overhang of recent IPO = dilution risk
❌ P/E of 46x leaves no room for mistakes
📉 Fair Value Range: ₹400–₹480
📍 CMP: ₹587 = priced for FY27 success already
Verdict: Senores wants to be a small-cap Sun Pharma. But for now, it’s burning more than it’s earning. Either they scale and print cash — or drown in their own ANDAs.
✍️ Written by Prashant | 📅 July 9, 2025
Tags: Senores Pharma, Complex Generics, IPO Stocks, API Capex, USFDA, Pharma Growth, Gujarat Pharma Hub, ANDA Acquisition
