Anlon Healthcare shares make a tepid debut. Ought to IPO traders wait or promote?

Anlon Healthcare shares debuted at a modest 1% premium on the NSE on Wednesday, reflecting weak market sentiment amid broader volatility within the pharma sector. The IPO noticed a wholesome total subscription price of seven.12 instances, with retail traders subscribing 47.26 instances, non-institutional traders (NII) 10.61 instances, and certified institutional consumers (QIB) 1.07 instances.

These figures point out robust retail curiosity however a tepid response from institutional traders.

Anlon Healthcare is a specialised chemical producer specializing in pharmaceutical intermediates and energetic pharmaceutical substances (APIs), that are used to formulate completed dosage kinds equivalent to tablets, capsules, and syrups. The corporate additionally markets merchandise for nutraceuticals, private care, and animal well being.

Analysts say that regardless of the muted itemizing, Anlon’s funding in area of interest APIs like loxoprofen and its growth plans counsel it might rebound.

“The subdued itemizing contrasts with the excessive subscription price and highlights market wariness about pharma IPOs, particularly resulting from valuation considerations and world financial headwinds,” stated a consultant from Grasp Capital Companies.

Financially, the corporate has proven wholesome progress. Income jumped 81% in FY25 to Rs 120 crore, whereas web revenue greater than doubled to Rs 20.5 crore. Revenue margins have expanded sharply, with EBITDA margin rising to 26.9% and PAT margin to 17.1%, in comparison with 18.5% and 5.2% in FY23.On the higher value band, Anlon is valued at a P/E of 19x FY25 earnings, with an EV/EBITDA a number of of 16.7x and a market capitalization of Rs 483.6 crore post-issue. Analysts take into account this absolutely priced.Key strengths embrace Anlon’s manufacture of loxoprofen sodium dihydrate, an API broadly used for ache and irritation administration and produced by only a few producers in India. Regulatory approvals from Brazil, Japan, and China additional bolster its export prospects and progress potential.

Nonetheless, dangers stay. The corporate has a restricted working historical past, and any shutdown of its single facility may affect manufacturing. It has additionally confronted regulatory halts up to now, an element traders ought to monitor intently.

(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t symbolize the views of The Financial Instances)