Corona Remedies IPO Review
About the Company
Corona Remedies Ltd., incorporated in 2004, is a fast-growing domestic pharmaceutical company with a strong presence across women’s healthcare, cardio-diabeto, urology, respiratory, vitamins and gastrointestinal therapies. The company markets 71 brands and is supported by a large field force of 2,671 medical representatives across 22 states, enabling deep penetration in middle-India. It operates two cGMP-compliant manufacturing facilities in Gujarat with installed capacity of 1,285 million units per annum. The company has demonstrated consistent growth and is currently ranked among the fastest-growing Indian pharma players.
2) Financials & Key Parameters
Financial Information (Rs. crore)
| Period Ended | 30 Jun 2025 | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Assets | 1,012.38 | 929.86 | 830.58 | 595.02 |
| Total Income | 348.56 | 1,202.35 | 1,020.93 | 891.10 |
| Profit After Tax | 46.20 | 149.43 | 90.50 | 84.93 |
| EBITDA | 71.80 | 245.91 | 161.19 | 135.03 |
| Net Worth | 607.02 | 606.34 | 480.41 | 408.52 |
| Reserves & Surplus | 545.86 | 545.18 | 419.25 | 347.36 |
| Total Borrowing | 106.65 | 62.70 | 134.14 | 2.33 |
Key Performance Indicators
| KPI | Value |
|---|---|
| ROE | 27.50% |
| ROCE | 41.32% |
| Debt/Equity | 0.10 |
| RoNW | 24.65% |
| PAT Margin | 12.49% |
| EBITDA Margin | 20.55% |
3) Peer Comparison
| Company | FY25 Revenue (Rs. Cr) | PAT Margin | ROE | PE Ratio* |
|---|---|---|---|---|
| Corona Remedies | 1,202 | 12.49% | 27.50% | To be derived (based on IPO pricing) |
| JB Chemicals | ~3,200 | ~16% | ~22% | ~28x |
| Ajanta Pharma | ~3,800 | ~18% | ~20% | ~30x |
| Glenmark Pharma | ~14,000 | ~6% | ~7% | ~24x |
| Alkem Labs | ~26,000 | ~7% | ~13% | ~35x |
Summary: Corona’s growth rate and returns (ROE/ROCE) are superior to most peers, but the IPO valuation likely matches the higher end of listed pharma multiples.
4) Industry Scenario
India’s pharmaceutical market continues to expand steadily, driven by rising chronic disease burden, higher healthcare awareness, and growing penetration in Tier-2 & Tier-3 regions. Domestic formulations—where Corona operates—are witnessing strong demand in women’s healthcare, cardio-diabeto and acute therapy segments. The industry benefits from favourable demographics and increasing affordability, though competition remains intense with price pressure in key therapeutic categories. Companies with strong brands and deeper field force networks are gaining market share.
5) Valuation View
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Upper price band: Rs. 1,062
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Current year expected EPS: ~Rs. 30
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Implied PE: ~35.4x
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The IPO size is Rs. 655.37 crore, fully OFS — hence no fresh capital enters the company.
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Expected oversubscription: Likely strong in QIB due to growth metrics; moderate in Retail/NII because of premium pricing.
Valuation stands at the upper end of mid-cap pharma peers, justified only if the company sustains high ROE/ROCE and strong brand momentum.
6) Final Verdict
Corona Remedies is a fundamentally strong and fast-growing pharma company with excellent return ratios, low leverage, strong brand basket, and deep field force. However, the IPO is entirely OFS, and the valuation at the upper band appears premium at ~35x earnings. Suitable for investors looking at a quality pharma franchise but with expectation of moderate listing gains and better long-term compounding rather than immediate upside. Conservative investors may evaluate post-listing opportunities, based on grey market trend.
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