📌 At a Glance
Anthem Biosciences Ltd is India’s fastest-growing CRDMO (Contract Research, Development, and Manufacturing Organisation). The company is coming up with a ₹3,395 Cr IPO — entirely Offer For Sale, so promoters are cashing out, not investing a rupee back. With ~550 clients globally, it operates across the drug lifecycle — from lab-to-launch, petri dish to patent. Financials are strong, margins are juicy, and customer base spans 44+ countries.
1. 🧪 WTF Does Anthem Even Do?
Anthem is basically the guy who:
- Helps you invent a new drug 🧫
- Helps you develop it 🧪
- Helps you make it at scale 🏭
A one-stop shop for CRDMO services. Which means:
- 🧠 Discovery services (170+ projects, 284 molecules synthesized)
- 🔬 Early & late phase R&D (16 late-stage projects, 13 commercial APIs)
- 🏭 Manufacturing: From biologics to fermentation-based APIs, peptides, probiotics, and even biosimilars
They’re also one of the few Indian players with strong biotech IP — with 7 global patents granted and 24 pending.
2. 💸 Financials: Show Me the Lab Money
Here’s how the bio-money has been flowing:
| ₹ Cr | FY22 | FY23 | FY24 | H1FY25 (Sep ’24) |
|---|---|---|---|---|
| Revenue | 1,280.2 | 1,134.0 | 1,483.1 | 910.9 |
| EBITDA | 587.3 | 446.1 | 520.0 | 327.5 |
| EBITDA Margin | 45.9% | 39.3% | 35.1% | 36.0% |
| PAT | 405.5 | 385.2 | 367.3 | 244.3 |
| PAT Margin | 31.7% | 34.0% | 24.8% | 26.8% |
| ROE | — | — | 20.04% | 20.03% |
| Net Worth | 1,355.0 | 1,740.7 | 1,924.7 | 2,204.4 |
| Debt | 35.5 | 125.1 | 232.5 | 131.3 |
TL;DR:
- Profitable for years
- Margins are still dreamy (EBITDA ~36%)
- Revenue CAGR (FY22 to FY24): ~7.6% (bit meh)
- But PAT has shrunk slightly — due to rising R&D + infra capex?
3. 🧮 Valuation – Is It Expensive or Nobel Prize Worthy?
We’ll estimate a Fair Value Range, assuming pricing happens between ₹8500–₹9500 Cr post-listing market cap.
Let’s take some valuation proxies:
- FY24 PAT = ₹367 Cr
- Assume EPS = ₹6.56 (Post dilution on 56 Cr shares)
- Expected PE Band = ~25x – 28x (Assumed industry range)
| Metric | Lower End (25x) | Upper End (28x) |
|---|---|---|
| EPS | ₹6.56 | ₹6.56 |
| FV Estimate | ₹164 | ₹183 |
🎯 EduInvesting FV Range™: ₹160 – ₹185 per share
Anything way above ₹200 would feel overstretched, unless growth suddenly explodes in FY25/FY26.
4. 🔥 What’s Cooking?
- 🧬 GLP-1 patent pending — buzzword alert! If they crack this obesity/diabetes molecule class, it could pop big.
- 🧪 Expansion of fermentation API business (enzymes, biosimilars, vitamin analogues)
- 📜 Patent filings rising — 24 pending globally
- 🌎 Expanding global footprint in 44+ countries — that’s almost UN General Assembly
Also, bonus: A clean QIB-loved narrative — IP, R&D, export, biotech, profit-making.
5. 📊 Balance Sheet – How Much Debt, How Many Dreams?
As of Sept 30, 2024:
- Total Borrowings: ₹131 Cr
- Net Worth: ₹2,204 Cr
- Debt/Equity = 0.12 — basically almost debt-free
- Reserves: ₹2,095 Cr
✅ No red flags here. This lab is not held hostage by any bank yet.
6. 💵 Cash Flow – Lab Results or Just Airtight Theory?
We don’t have full cash flow data in DRHP excerpts, but:
- High EBITDA suggests decent operating cash flow
- Low debt means capex was likely internal-accrual driven
- FY24 had some margin compression = possibly higher R&D, infra expansion?
No major dividend payouts — which is expected. They’re plowing it all into more bioreactors and molecules.
7. 📐 Ratios – Biotech Babe or Balance Sheet Beast?
| Ratio | Value | Comment |
|---|---|---|
| ROE | 20.04% | Stellar |
| ROCE | 25.22% | 🔥 |
| PAT Margin | 24.77% | Beautiful |
| EBITDA Margin | 36.25% | Top tier |
| Debt/Equity | 0.12 | Dream scenario |
| R&D/Revenue | ~6–8% est. | Healthy |
These margins are CDMO dream numbers. Comparable to Divi’s-level metrics.
8. 💊 Peer Comparison – Who Else Is in the Molecule Mafia?
| Company | CMP | PE | ROCE | EBITDA Margin |
|---|---|---|---|---|
| Divi’s Labs | ₹4,250 | ~50x | ~21% | ~32% |
| Syngene Intl. | ₹790 | ~40x | ~14% | ~26% |
| Anthem Bio | TBD | ~25–28x* | 25.2% | 36.2% |
🎯 Anthem is trying to price itself at a discount to Divi’s & Syngene, while showing higher returns.
But: Anthem is still mid-size, not as large-scale or stable as Divi’s. And has higher client fragmentation.
9. 🤝 Shareholding – Who’s Selling, Who’s Staying?
Pre-IPO Promoters:
- Ajay Bhardwaj, Ganesh Sambasivam, K Ravindra Chandrappa, Ishaan Bhardwaj
Pre-IPO Holding: 77.23%
Post-IPO Holding: TBD (They’re offloading, remember?)
Entire ₹3,395 Cr IPO is an Offer for Sale — no fresh issue. Translation:
“Thank you for the IPO. We’re taking our biotech money and chilling in Maldives.” 🏖️
10. 🧑⚖️ EduInvesting Verdict™
“Anthem is Divi’s energetic younger cousin, high on science and fermentation.”
✅ Pros:
- Real, sustainable profits
- Huge margins
- Global client base
- Strong patent/IP pipeline
- Debt-free, R&D focused
🚨 Concerns:
- Entirely OFS — No new money into business
- FY24 growth has been modest
- Pricing unknown — if PE > 30x, risk goes up
🎯 EduInvesting Fair Value Range: ₹160 – ₹185 per share
🚫 No buy/sell advice. Just molecule math and margin masala.
✍️ Written by Prashant | 📅 July 7, 2025
Tags: Anthem Biosciences IPO, CRDMO IPO India, Biotech IPO 2025, Bengaluru Pharma IPO, OFS IPO, Drug Discovery India, IPO Analysis, EduInvesting IPO Review
