Senores Pharmaceuticals Limited Q3 FY2025 Results
Value Pick Multibagger Stock for long term investment
Company Overview
Senores Pharmaceuticals Limited (SPL) is a research-driven pharmaceutical company specializing in generic and specialty pharmaceuticals. Operating primarily in regulated markets such as the US, Canada, and the UK, with expanding presence across Latin America, Africa, Southeast Asia, and the Middle East.
Key Strengths
- Strong regulatory approvals: USFDA, WHO-GMP, and DEA-compliant facilities
- Growing footprint in regulated markets with long-term distribution agreements
- Diverse revenue streams: Branded generics, APIs, and contract manufacturing
- High-margin complex generics with CGT exclusivity
- Backward integration into API manufacturing
Financial Performance – Q3 FY2025
| Metric | Q3 FY25 | YoY Growth | 9M FY25 | YoY Growth |
|---|---|---|---|---|
| Total Income | ₹106.4 Cr | +35.2% | ₹288.1 Cr | +157% |
| Gross Profit | ₹65.7 Cr | +116.2% | ₹164.9 Cr | +221.1% |
| EBITDA | ₹29.1 Cr | +91.8% | ₹74.3 Cr | +287% |
| PAT | ₹17.2 Cr | +142.3% | ₹40.7 Cr | +162% |
Business Segment Performance
| Segment | Q3 FY25 Revenue | YoY Growth | 9M FY25 Revenue | YoY Growth |
|---|---|---|---|---|
| Regulated Markets | ₹70.2 Cr | +2.5% | ₹180.5 Cr | +99.8% |
| Emerging Markets | ₹26.1 Cr | +289.3% | ₹84.6 Cr | +1,164.8% |
| Others (API & Injectables) | ₹6.8 Cr | +90.6% | ₹18.9 Cr | +25.6% |
Growth Plans & Expansion Strategy
Market Expansion
- Entering Brazil, Australia, and New Zealand markets
- 537 pending product registrations in Southeast Asia, Africa, and Latin America
Manufacturing & R&D
- USFDA-approved sterile injectables facility in Atlanta
- API manufacturing capacity increase: 25 MTPA to 169 MTPA
- R&D focus on complex generics and critical care products
CDMO & CMO Partnerships
- Strategic alliances with pharmaceutical giants
- Strong growth expected in CDMO market
Products & Pipeline
| Category | Count |
|---|---|
| Commercialized Products (Regulated) | 22 |
| CDMO/CMO Commercial Products | 21 |
| Approved ANDAs (US Market) | 24 |
| Pipeline CGT Generics | 28 |
| Pipeline Products | 51 |
| CDMO/CMO Pipeline Products | 69 |
| Approved Products (Emerging Markets) | 237 |
| Products Under Registration | 537 |
Capital Expenditure & IPO Fund Utilization
| Use of Funds | Planned (₹ Cr) | Utilized (₹ Cr) | Unutilized (₹ Cr) |
|---|---|---|---|
| Atlanta Injectables Facility | 107 | 0 | 107 |
| Debt Repayment | 73.5 | 0 | 73.5 |
| Subsidiary Loan Repayment | 20.2 | 0 | 20.2 |
| Working Capital | 102.8 | 0 | 102.8 |
| Strategic Acquisitions | 154.4 | 0 | 154.4 |
| General Corporate & Offer Expenses | 42.2 | 10 | 32.2 |
| Total | 500.0 | 10.0 | 490.0 |
Competitive Landscape & Risks
Competitive Edge
- Second-highest CGT Exclusivity among industry peers
- Regulated market compliance (USFDA, DEA, WHO-GMP)
- Backward integration into APIs, reducing costs
Key Risks
- High P/E Ratio (80.4) compared to industry peers
- Competition from global pharma giants
- Regulatory risks: Stricter USFDA scrutiny
- Execution risk in scaling CDMO partnerships
Valuation Metrics
Market Cap
₹2,532 Cr
Current Price
₹550
Stock P/E
80.4
ROCE
11.5%
ROE
25.2%
Debt
₹258 Cr
Reserves
₹174 Cr
Dividend Yield
0.00%
Sales Growth (YoY)
507%
Profit Growth (YoY)
273%
Investment Thesis
- High revenue growth (157% YoY) with expanding profit margins
- Diversified portfolio spanning regulated and emerging markets
- Upcoming capacity expansions will drive long-term scalability
- CDMO partnerships provide stable revenue, reducing volatility
- Valuation concerns due to high P/E (80.4), but growth potential is strong
Conclusion
Senores Pharmaceuticals is a high-growth pharma stock, expanding aggressively in regulated markets, CDMO, and APIs. However, high valuations and execution risks warrant cautious optimism.
Disclaimer
This report is for informational purposes only and not investment advice. Investors should conduct independent research before making financial decisions.
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