🧴 At a Glance
Astonea Labs, incorporated in 2017 and listed in June 2025, blends pharmaceuticals and cosmetics under one roof. With clients in the US, Iraq, and Botswana (yes, really), it clocked ₹80 Cr sales in FY24 and a 546% TTM profit jump. But with a P/E of 40x and a 9.5% brand contribution? Hmm.
1️⃣ What Even Is This Company?
Picture this:
- You take a Regero capsule for your migraine
- Apply a Glow Up sunscreen
- Then order both from Amazon
That’s Astonea Labs for you.
They do:
- 💼 Contract Manufacturing for global clients (USA to Yemen)
- 🧴 Own Brands:
- Glow Up (Skincare, Haircare, Toothpaste)
- Regero (Pharma: tablets, gels, capsules)
- Soon: Avicel (new skincare brand)
95%+ of their revenue? Still from contract manufacturing. Brands are more vibe than volume.
2️⃣ The Product Buffet 🍽️
| Category | Products |
|---|---|
| 🌿 Cosmetics | Face washes, creams, serums, sunscreens, oils, toothpaste |
| 💊 Pharma | Antibiotics, antihistamines, diabetics, multivitamins, capsules, sachets |
| 💼 Contract Clients | USA, Guatemala, Iraq, Bolivia, Botswana, Yemen |
The company exports to six countries — but also just cleared a USFDA audit, which is like getting into Harvard for manufacturers.
3️⃣ The Capacity Game: Look Busy, But Don’t Overdo It
Pharma Installed Capacity (Monthly)
| Format | Capacity | Utilisation |
|---|---|---|
| Tablets | 160M | 77% |
| Capsules | 50M | 77% |
| Sachets | 13.5M | 5% ❌ |
| Softgels | 53.5M | 30% |
| Ointments | 6.5M | 55% |
Cosmetics Capacity
| Format | Capacity | Utilisation |
|---|---|---|
| Lotions | 4M | 80% ✅ |
| Creams/Gels | 12M | 70% |
| Oils | 4M | 10% 😬 |
| Toothpaste | 80M | 50% |
Looks like:
- They’re slaying in creams & lotions
- And completely ignoring sachets & oils
4️⃣ Financial Glow-Up 💰💄
Profit & Loss (₹ Cr)
| FY | Sales | Net Profit | OPM | EPS |
|---|---|---|---|---|
| FY22 | 30.0 | 0.25 | 19.4% | ₹0.62 |
| FY23 | 66.9 | 0.67 | 10.7% | ₹1.68 |
| FY24 | 80.1 | 3.81 | 14.9% | ₹5.01 |
TTM profit growth = 546%
Yes, that’s not a typo.
EPS is up 8x in two years — but the revenue jump is slowing. That’s your yellow flag.
5️⃣ IPO Shenanigans: Follow the Money 🚨
They raised ₹37.5 Cr in June 2025. What for?
- 👷 Capex
- 📢 Advertising
- 🌍 Registration in South Africa
- 🧾 Working Capital
- ☕ General Gupshup
So far, no wild promoter exits — promoter stake is 72.3%, which is decent.
Shareholding Pattern (June 2025):
| Category | % |
|---|---|
| Promoters | 72.3% |
| FIIs | 8.01% |
| DIIs | 4.55% |
| Public | 15.15% |
6️⃣ Cash Flow, ROCE, and Reality Checks
Return Ratios
| Metric | FY24 |
|---|---|
| ROCE | 16.4% |
| ROE | 37.8% |
| Stock P/E | 40x 🧨 |
Yes, they’re making decent returns — but you’re paying a premium for future growth.
Cash Flow
| Year | Cash from Ops (₹ Cr) |
|---|---|
| FY22 | -4.93 |
| FY23 | -1.05 |
| FY24 | +4.05 ✅ |
They’re finally generating cash from business after two years of burning it. IPO couldn’t have come at a better time.
7️⃣ Risks & Red Flags 🚩
- Overvalued? 40x P/E for a contract mfg firm is… spicy.
- Inventory Days up: from 121 to 161 → Working capital stress?
- Sachets & Oils Utilization <10% → Unused capacity = sunk cost
- Own brands still <10% → Low margin control, no D2C flywheel yet
- Top 5 clients = 30%+ revenue → B2B concentration risk
🧮 Fair Value Range
Let’s estimate:
- FY24 EPS: ₹5.01
- FY25 (est.): ₹6.50
- P/E justified: 20–25x (for contract mfg + brand optionality)
🎯 FV = ₹130 – ₹160
CMP is ₹145 — it’s priced in for growth. Any slowdown or brand flop, and valuations may compress.
TL;DR 💡
- Cosmetics + pharma = hot cocktail
- Brand expansion is coming, but slow
- Financials improving, but stock is already P/E 40
- ROE 38% is 🔥, but only if brand scale-up succeeds
If Glow Up goes viral and Regero gets US OTC sales — 💸
If not — it’s a fancy manufacturer trading at D2C valuations. 🤷
Tags: Astonea Labs IPO, Glow Up brand, SME Pharma IPO, D2C Skincare India, Contract Manufacturing India, USFDA approved SME, EduInvesting, Regero, Avicel launch
