Supriya Lifescience: PAT growth of 93% & Revenue growth of 19% in H1-25 at PE of 33
FY25 revenue growth at 20%+ with 30%+ EBITDA margin. Doubling revenue to Rs 1,000 cr during FY24-27 at a CAGR of 21%. . Maintaining EBITDA margin of 28-30% over the long term
1. API Manufacturer
supriyalifescience.com | NSE : SUPRIYA
Supriya Lifescience Ltd., a cGMP-compliant business in API manufacturing and a focus on products from a variety of therapeutic segments, including anti-histamine, anti-allergic, vitamin, anaesthetic, and anti-asthmatic.
2. FY20-24: PAT CAGR of 13% & Revenue CAGR of 16%
3. Strong FY24: PAT up 33% & Revenue up 24% YoY
4. Strong Q2-25: PAT up 93% & Revenue up 19% YoY
PAT up 3.4% & Revenue up 3.4% QoQ
5. Strong H1-25: PAT up 73% & Revenue up 20% YoY
6. Business metrics: Stabilizing return ratios
7. Outlook: Revenue growth of 20%+ in FY25
i. FY25: Revenue growth of 20%+
In terms of revenue growth, we have always maintained that year on year, you can expect upwards of 20% growth from our side. And that is still the number that we would like to maintain for the next three years.
ii. FY25: Expectations for 30%+ EBITDA margin
Management is indicating to a 30%+ EBITDA margin in FY25, higher than FY4. The revised guidance in EBITDA margin would be made looking at 2-25 results
We are very confident that 28% to 30% we will be able to maintain. The company definitely has potential to achieve higher than 30% because a lot of the new projects the same opportunities come at a more premium margin that is what we benchmark ourselves against.
iii. FY24-27: 21% revenue CAGR
Guiding for revenue of Rs 1,000 cr by FY27 from Rs 570 cr in FY24, implies a revenue CAGR of 21% which is in the range of 20%+ guided by management in FY25 and looks reasonable.
I would say, that the INR1000 crores with the margins we are committing, we will be able to achieve that.
iv. FY27: CMO CDMO to be 18-20% of revenue with better than 28-30% margins
We have large CMO, CDMO opportunities in our hand. Those will also scale up in the next three years.
In the INR1,000 crores we anticipate about 18% to 20% coming in from CMO, CDMO. It is in fact a better margin proposition than what you are guiding at 28% to 30%
9. PAT growth of 73% & Revenue growth of 20% in H1-25 at a PE of 31
10. Hold?
If I hold the stock then one may continue holding on to SUPRIYA
Coverage of SUPRIYA was initiated after Q1-24 results. The investment thesis has not changed after a good FY24 and equally strong H1-25. After a delivering 20%+ revenue growth there is confidence in the management to deliver as per the 20%+ growth guidance for FY25.
SUPRIYA is in the middle of a strong run. It has delivered increasing PAT on a sequential QoQ basis for the last 4 quarters starting Q3-24.
SUPRIYA is working on a roadmap of a revenue of Rs 1,000 cr by FY27
Capacity enhancement for further backward integration for existing products, new product rollouts and CMO/CDMO opportunities
In the INR1,000 crores we anticipate about 18% to 20% coming in from CMO, CDMO.
11. Or, join the ride
If I am looking to enter SUPRIYA then
SUPRIYA has delivered PAT growth of 73% & Revenue growth of 20% in H1-25 at a PE of 33 which makes valuations fairly priced in the short term..
Outlook for revenue growth of 20% in FY25 while maintaining EBITDA margins at with 30%+ EBITDA margin at a PE of 33 makes the valuations reasonable from a medium term perspective.
From a longer term perspective, the growth guidance of the management to deliver a top-line of Rs 1,000 cr by FY27 and grow at CAGR of 21% for FY24-27 creates opportunity in the stock over the longer term.
Previous coverage on SUPRIYA
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Don’t miss reading our Disclaimer
Growth outlook is good, but margin outlook is not. A 6% fall in EBITDA margin from FY26, would result in mid-teen bottom line growth