📅 Mark your trading calendars and hide your panic pills — Accretion Pharmaceuticals is heading to the NSE Emerge platform on May 14, 2025. And no, this isn’t one of those bitter pills to swallow. In fact, the company just turned a ₹0.1 crore net profit into ₹3.9 crore in one year — a jump so steep it should come with a health warning.
💉 What is Accretion Pharmaceuticals?
Based in Gujarat, Accretion Pharmaceuticals is the company your doctor won’t prescribe but your broker just might. It manufactures pharmaceutical formulations like tablets, capsules, oral liquids, and ointments, mostly for other companies under loan licensing and contract manufacturing.
In simple terms, it’s the ghostwriter of pharma—writing blockbusters without taking credit. But now, with its ₹29.75 crore IPO, it’s stepping into the spotlight to say, “Doctor investor, I’m ready for your examination.”
💰 IPO Details (For Those Who Like Their Drugs in Dosage Form)
| IPO Detail | Data |
|---|---|
| Issue Size | ₹29.75 crore |
| Price Band | ₹96 – ₹101 |
| Lot Size | 1,200 shares |
| Minimum Investment | ₹1,21,200 (Yes, you’ll need a healthy bank account) |
| Issue Opens | May 14, 2025 |
| Issue Closes | May 16, 2025 |
| Allotment Date | May 19, 2025 |
| Listing Date | May 21, 2025 |
| Listing Exchange | NSE Emerge |
📊 The Financial X-ray Report
Accretion Pharmaceuticals may be small, but its 2024 financials suggest it’s no placebo.
🧾 Income Statement (₹ crore)
| Indicator | FY24 | FY23 | FY22 |
|---|---|---|---|
| Total Revenue | 33.9 | 29.5 | 22.6 |
| Total Expenses | 28.2 | 29.4 | 22.5 |
| PBT (Profit Before Tax) | 5.8 | 0.1 | 0.1 |
| Tax | 1.9 | 0 | 0 |
| Net Profit | 3.9 | 0.1 | 0.1 |
| NPM % | 11.51% | 0.35% | 0.35% |
| EPS (Adjusted) | ₹3.5 | ₹0.1 | ₹0.1 |
📈 Observations:
- Revenue grew by ~15% YoY, but net profit grew by 3,800% — someone give the finance team a standing ovation and possibly a raise.
- Net Profit Margins exploded from 0.35% to 11.5%. That’s not just an improvement — that’s a resurrection.
🏢 Balance Sheet Check-up
| Indicator | FY24 | FY23 | FY22 |
|---|---|---|---|
| Shareholder’s Funds | 5.4 | 3.8 | 3.1 |
| Non-Current Liabilities | 7 | 2.9 | 2.9 |
| Current Liabilities | 14.7 | 13.8 | 11.7 |
| Total Liabilities | 27.1 | 20.6 | 17.7 |
| Non-Current Assets | 5.5 | 6.1 | 5.9 |
| Current Assets | 21.6 | 14.5 | 11.9 |
| Total Assets | 27.1 | 20.6 | 17.7 |
💡 Highlights:
- Total assets grew from ₹17.7 crore to ₹27.1 crore in two years — probably the only time a medical company is happy to gain weight.
- Despite a higher liability base, the increase in current assets suggests good working capital management (or in layman terms: they aren’t just burning cash faster than your gym subscription renewal).
🧬 Diagnosis: Is This IPO a Cure or Just Cosmetic?
✅ Positives:
- Strong revenue and profit growth.
- Pharmaceutical sector continues to enjoy long-term tailwinds.
- High NPM and EPS growth shows efficient management.
- IPO funds will be used for capacity expansion and debt reduction — not for buying luxury cars or sponsoring cricket teams (we’re looking at you, unicorn startups).
⚠️ Red Flags:
- The ₹1.2 lakh minimum investment could be a bitter pill for retail investors with a ₹500 Demat balance.
- Low float SME listing — could mean low liquidity post-listing.
- Still small-scale compared to sector giants — will need consistent performance to stay competitive.
😄 The Funny Bone: Side Effects May Include FOMO
If you feel a sudden urge to Google “how to open a Zerodha account,” don’t worry — it’s a common side effect of hot IPOs. Other potential symptoms of this IPO include:
- Involuntary portfolio reshuffling
- Sudden interest in pharmaceutical jargon
- Delusions of being a ‘long-term investor’ right before listing day
And if your friend says, “Bro, I knew about this IPO a month ago,” offer them a salt tablet and ask why they didn’t tell you.
💼 Retail Investors, Should You Pop This Pill?
If you’re a retail investor with ₹1.2 lakh lying around and a tolerance for SME risk, Accretion might be worth a look. The profit numbers are appealing, the sector is solid, and the use of IPO funds seems pragmatic.
But remember — not all that glitters is Nifty. SME IPOs are often volatile. One bad quarter, and you might need a dose of aspirin with your stock statement.
📌 Final Takeaway
Accretion Pharmaceuticals isn’t a flashy, celebrity-endorsed IPO. It’s more like that underrated medicine that quietly works wonders without 12 Instagram ads. If its FY24 performance is anything to go by, it’s not just surviving — it’s thriving.
In summary:
- Strong fundamentals? ✅
- Profit explosion? ✅
- High EPS growth? ✅
- Risk? SME-level ✅
- Humor in pharma? You bet.
If you decide to invest, may your profits rise faster than Accretion’s net margin. And if you don’t — don’t worry, another IPO will be along in a week with even more side effects.
