Valiant Laboratories Limited is an Active Pharmaceutical Ingredient (“API”) / Bulk Drug manufacturing company with having focus on the manufacturing of Paracetamol. The Company manufactures Paracetamol in various grades such as IP/BP/EP/USP, as per the pharmacopeia requirements of its customers.
OBJECTS OF THE ISSUE
- Investment in its wholly-owned subsidiary VASPL for its capital expenditure and working capital requirements.
- General corporate purposes.
Velji Karamshi Gogri
Chairman, Independent and Non- Executive Director of the Company. He has experience of more than 45 years in the Chemical Industry involved in setting up and operating bulk drugs intermediates and fine chemicals manufacturing units and handling different chemical processes and equipment.
Santosh Shantilal Vora
Managing Director of the Company. He has experience of over 7 years in the chemical industry. He is one of the founding members of the Company and looks after the day- to-day affairs of the Company. He handles the responsibility of looking after new product development, infusion and upgradation of technology in operations and production process of the Company.
Paresh Shashikant Shah
Executive Director and Chief Financial Officer of the Company. He has been associated with the Company since 1985. He has experience of over four decades in the chemical industry. He is also one of the founding members of the Company and a director on the Board since incorporation.
Saloni Mehta
The Company Secretary & Compliance Officer of the Company. She is a qualified Company Secretary and is an associate member of the Institute of Company Secretaries of India. She has over two years of experience in the field of company law and SEBI Listing Regulations related compliance. She has been associated with the Company since November 30, 2021
COMPANY PROFILE
- Valiant Laboratories Limited was originally formed in year 1980 as a partnership firm under the name and style of “M/s. Bharat Chemicals” and gradually, commenced manufacturing of Paracetamol by late 1982.
- Its manufacturing unit is located in Palghar, Maharashtra, spread over 2,000 sq. mts. of land with an aggregate annual installed capacity of 9,000 MT per annum.
- Within its Manufacturing Facility located at Tarapur Industrial Area, Palghar, Maharashtra it also has an in-house R&D infrastructure.
- The Company, through its wholly-owned subsidiary, Valiant Advanced Sciences Private Limited intends to establish a greenfield project at Saykha Industrial Area, Bharuch, Gujarat. which shall venture into the manufacture of specialty chemicals and assist it in the backward integration process.
COMPETITIVE STRENGTHS
- Experienced promoters and strong management team.
- Strong financial performance.
- Reducing dependence on import of raw materials.
- Strategically located Manufacturing Facility.
KEY STRATEGIES
- Diversification into new chemistries and industry. Increase in market share.
- Improve operational efficiencies through backward integration of the Proposed Facility. Increase its penetration into international markets including regulated markets.
KEY CONCERNS
- It is a single-product manufacturing company and any changes to the paracetamol API industry or its product demand will adversely affect its business.
- The Company operates out of a single Manufacturing Facility. Any significant social, political, or economic disruption natural calamities, or civil disruptions in this region may impact its business. Subject to strict quality requirements, regular inspections, and audits by our customers and any failure to comply with quality standards may lead to cancellation of existing and future orders. limited number of suppliers for its raw materials which are highly concentrated in the western region of India.
- Dependent on a few customers for a major part of its revenues. The pharmaceutical industry is intensely competitive.
COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2023)
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FINANCIALS (RESTATED CONSOLIDATED)
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OUTLOOK & VALUATION
Valiant Laboratories is a 40-year-old pharmaceutical ingredient manufacturing company with a main focus on paracetamol. Currently, it operates from its only manufacturing unit in Palgarh, Maharashtra; however, it is planning to establish a new project in Gujarat through its subsidiary. Its financial performance has been improving, and it has the benefit of experienced promoters.
But it is a single-product manufacturing company. Secondly, it is dependent on a limited number of suppliers as well as customers. Also, there is intense competition in this industry along with high regulations. The issue is coming at a P/E valuation of 15.7, which seems fair, but considering other risks and current market volatility, we will avoid this IPO.
DISCLAIMER:
The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.
Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.
CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000
Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.inPhone: (0731) 6644 241
Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.
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