hey folks c r ran here and I welcome you all to another interesting shoot and release video of enure pharmaceuticals limited well as I mentioned it's a shoot and release video that does mean that it's a one take video and it may happen that I fumble upon some num some data so it's always a better practice to check the pinned comment wherein I give any clarification if I have fumbled upon some words right uh well coming on to the IPO discussion uh you know when I was coming to the office today I overheard two people talking to each other the first was asking whether you going to invest in mq Pharma limited's IPO or not but the second person said that you know I don't I don't know how to analyze IPOs I don't know how to go through the 500 pager IPO document I don't have an expertise in that and that's the reason why I'm out okay but that is why you all are here because today the 546 pager uh mure Pharma limiteds RHP is what we want to summarize I'm going to try and summarize in like 10 to maximum 15 minutes so I'm going to I'm I'm sure that in the next 10 15 minutes you will understand about what does the company do you'll understand about the industry analysis you will understand about the financial certain risks IPO details and a lot more interesting stuff is coming up in the video so what I'm going to do is I'm going to share my uh document for that so here you can see that we are going to discuss mcure pharmaceutical IPOs uh uh the RHP whatever I'm going to discuss in today's video is nothing but a crisper or a you know concise version of RHP no information has been taken beyond the RHP barring the subscription status because subscription status doesn't come up in RHP other than that each and every word in my presentation is a part and parcel of RHP we have taken the information from that right with this as a disclosure let's begin what does mcure Pharmaceuticals do it is an Indian pharmaceutical company which is engaged into three things which three things number one developing number to manufacturing and number three globally marketing a broad range of pharmaceutical products across several therapeutic areas okay so what what are the three things they are going to develop they're going to manufacture and they're also going to globally Market it what different different pharmaceutical products and very important they have written that across several major therapeutic areas therapetic therapeutic areas means what therapy means something which can give you an effect which which is like a cure it will cure your diseases that that's a therapetic effect okay now take agreed BR a broad range of products agreed but what does their portfolio include it includes orals injectables Biotherapeutics and the amazing point is that they have a target market across 70 countries and they have a strong presence in India Europe and Canada okay now TK you have you have understood that yes 70 plus countries uh product portfolio includes orals injectable bi Biotherapeutics but if I were to understand that which are the key therapeutic areas so for that they have mentioned in the RHP that it includes Gynecology card cardiovascular uh then vitamins minerals nutrients HIV antiviral blood related oncology antineoplastics whatever okay so what have we understood they're going to make different pharmaceutical products it's going to be like it's going to be in therapeutic areas we understood uh that they have presence in 70 plus countries India Europe Canada is the primary presence a lot of basic stuff we have understood we have to also understand that as per their RHP they are a market leader in the Gynecology therapeutic area in the Indian pharmacy market where they have ran first and have 13.53% market share and if I were to compare mqr with their competitor the second best competitor mq has a market share of 1.7 times as compared to their second best competitor right uh this is in which area this is in the area of Gynecology therapy okay so all in all I hope some basic points about the company are clear I hope you have understood what does the company do now let's get on to the industry analysis some very basic points about industry analysis the overall globally I mean globally the uh this space this sector is expected to grow at 5 to 5.5% between 2023 to 2028 and this will take the overall pharmaceutical markets at a valuation of roughly 157 trillion INR to 161 trillion INR but this is about global growth right Global growth is expected to 5 to 5.5% CHR what about India India is expected to grow Indian market this specific Market is expected to grow at 8 to 9% CHR and its valuation is is expected to reach approximately 2.9 trillion to 3 trillion rupees now also talking about one more very very very important point now why am I saying this uh you'll get the link in the immediate next section okay but first we have to understand that as for the RHP it is it it has specific details like what number of products that are going to go off patent and they have also mentioned how many in 2024 how many in 2025 how many in 26 27 28 BL okay now you have to understand and what do I mean by number of products going going off patent so there are two types of products that any company can actually sell okay so here you can see I've I've I've come to the next screen there are two major categories you can see here one is branded patented products and here first we'll see one word is in common and that is generic products now first we have to understand what do we mean by branded uh products branded patented products and generic products so let me just uh go back and take me to full screen okay so that you focus right now so whenever I'm talking about let's say I am uh myself a pharmaceutical company and I I put in a lot of effort for some research for development and I come across a new formulation I'll take all the necessary licenses and ultimately I get a patent for that once I get a patent for that no other Pharma player can copy my specific medicine okay whatever I patented okay now the thing is that will I get this patent forever answer is no no there is a lifetime for that LIF span for that typically you can say that it will be around 10 years okay I don't know the years may vary but whatever I have read generally it is 10 years okay now what happens is that any company which wants to manufacture a similar product or the same with the same patent related ingredients they'll have to pay royalty to me if they have to manufacture and and sell something which is very very similar or it same like the one that I patented but as I mentioned after 10 years what happen my patent is gone okay now this becomes available to all the players now it becomes generic okay I think the word itself says it has now become generic because the patent has now expired right so why are we saying that this is really really important because if the number of products going off patent keep on increasing number of products as in number of medicines which go off patent they keep on increasing obviously lot of Pharma players will find an opportunity to actually manufacture and sell them now there are two points here again very important number one the good point is that they will be able to increase the top line if more than more uh you know medicines go off patent number one but it's a double-edged swad right because it's not like only mq will be able to do that all pharmaceutical companies will get get an opportunity to manufacture and sell these products so competition will be pretty high so we'll also have to check how much revenue for mcure is generated from Pharma wors uses how much from branded products which are patented just to give you a generic information in India generally I'm not saying for all companies but generally a lot of companies find more revenue from generic products I'm talking about Pharma companies rather than branded patented okay so now with that as a basic information let's go to the presentation again and understand that yes currently patented biopharmaceuticals of value nearly 190 to20 billion US dollar are set to expire over 2024 to 2028 globally and that's the number of products going off patent as now I hope everyone will understand these will go off patent means what the these will be available for generic now let's understand for mcure what is the overall split we are talking about the revenue split now revenue from generic products and branded products if I were to Club this up this is totaling to almost 93% okay and balance barely 7% is for Branded patented products and apis now if you don't know what is an API API is an active pharmaceutical ingredient okay that is basically API is basically which has the true therapeutic effect so if I'm talking about let's say I fever typically what we do is we go to a medical shop and we'll say cin give me Doo or whatever kosin doesn't have the medical effect it doesn't have the therapeutic effect it is actually the paracetamol which will have the therapeutic effect so that is called as the API okay so you can imagine if they also have if mq also has a lot of apis then it will be a good one do they have some apis yes and that's what is also given in their RHP some of their key apis are of course I'm not a person from Pharma so please excuse me if I'm doing wrong pronunciations uh destone whatever fic carola you got my point right you can EAS you can easily read it so anyways the main point here is that majority of the revenue does come from generic and somewhere around % comes from apis okay moving ahead again a very very important point is about R&D expenses and patent so again as for the RHP uh they have mentioned that the company has five R&D facilities in India and uh they have a lot of focus on R&D as well company has been granted with 220 patents and have 30 pending patents application in several countries they have submitted 102 DMF DMF is basically a drug Master file uh that is for apis and they have also some pending with the usfda now we can also check how much is the R&D expenditure that they have done as I mentioned yes they do have a focus on R&D but if we were to quantify that now if I were to compare 2024 with 2022 yes the amount has decreased but if I were to compare 2024 with 2023 the amount has increased but if I were to compare R&D as a percentage of Revenue 22 versus 23 versus 24 the percentage has been dropping as compared to sales right now coming to key risks again everything whatever I'm saying is there in the RHP you can also check that out uh of course the moment it's Pharma the biggest point is it's heavily regulated industry I've seen this with so many listed players as well they put so much effort for R&D and then you know usfda will have some question marks now what happens with this is that uh you know they have incurred so much cost and if usfda puts certain observations or give certain observations then their time to generate revenue from that product is postponed okay they can't start immediately generating revenue from that that time will get postponed and that is again you know one of the shortcomings not of this company of the entire Pharma space is what I'm telling you it's heavily regulated okay they have also mentioned in the RHP which are the uh different industry Regulators you can see that uh while the company has very much clearly mentioned in their RHP that they have not experienced any instance of failure to obtain and maintain these approvals and licenses in the past three Financial years but if this happens in the future if they fail to you know get some license in the future then it may materially affect their business right now this is about basic stuff now let's I mean basic stuff as in understanding what does the company do understanding uh the overall industry understanding some key finer points about the company and now let's move on with the financials if you see your overall revenue from operations is in an increasing trend from 58,000 Millions to 59,000 Millions to 66.5 th000 Millions this is a cagr of roughly what 6 6.5% cagr roughly uh now if you see here uh overall what is the split export sale versus sale in India it's as good as a 50/50% split for the latest Financial year 2024 as good as I'm saying 48 52% uh if I'm talking about profit for the year that is one sign which is continuously decreasing from 7,000 million to 5,600 million to 5,200 million I'm just rounding off the figures right uh Pat margin has been also continuously decreasing from 11.87% to 7.86% you can read that for yourself as well right Ro be it Roe be it roce be it iida margin all three parameters have been on a declining Trend and if I'm talking about iida in absolute numbers yes as compared to 2022 the number is lower in 2024 but if I were to compare that with 2023 it is a shade higher okay so this is about the financials if I'm talking about about the valuation part uh valuation K you can see here the industry PE ratio is at 40.41 but the company's p ratio at an upper band is 36.6 okay you are my students you understand how to interpret company p ratio versus industry p ratio no need for me to even explain that right now comes the next part which is the peer comparison and what you can do by the way what I have done is that of course entire data as I mentioned has been taken from RHP but these were like two or three different tables we have just compiled the data into one single table so that it'll be easier for you to quickly compare then and there itself so we have compared this company with the peers again all these peers have been given in the RSP only okay Revenue iida Pat margin EPS Roc na nav and R NW RW is nothing but return on net worth all these numbers we are comparing uh so what you have to do is you have to just pause the video and check each and every number of mq Pharma with its peers that is how you do a peer comparison right and and uh you know you can do that for all seven so as I mentioned pause take a screenshot whatever but do the pure comparison that's always a good way to analyze a company as compared to others now moving on with the objects of the company if you see here be it uh I mean there are two major purposes or the objects of the issue number one is repayment or prepayment of certain uh borrowings and second one is General Corporate purpose now uh is this the complete fresh issue answer is no out of the total issue of 1,952 crores almost 800 is a fresh issue 1,1 1552 is an offer for sale uh you can see here what is the price band it's 960 to18 the IPO has opened up today and will close day after tomorrow as I shoot the video uh it's uh it's the third today only I'm shooting the video today only it is going to be released as I shoot the video you can see the subscription status uh in totality it's about to hit uh full subscription it's at0 8 right now uh I've taken the screenshot almost an hour ago maybe till now it might have gone closer to one uh so you can see our nii has already crossed one uh be uh retail portion also has has hit the one mark So basically subscribed fully subscribed now how much it gets over subscribed in the retail category that will be interesting to see even employee quota has been over subscrib has been over subscribed at 1.77 so all in all as I mentioned we did start with what does the company do we moved on to Industry analysis we did check uh what are the financials uh we did understand about what is the valuation peer comparison IPO details two three important uh New Concepts you might have learned about what is patented products what are generic products I'm sure you learned something new in this video as well uh so what what are you going to do do let me know in the comment section are you going to say I'm out or I'm in what are you going to say do let me know your thoughts in the comment section below I hope you enjoyed this short and sweet IPO summary if you did don't forget to smash the like button as well I'll see you all oh by the way please don't forget to check out the pinned comment as well I hope you enjoyed this till then take care Shen and byebye