Dear Group Members,
I did not find a chatter focusing on the newly listed entity Aarti pharma labs. I see it an interesting space and an interesting company. Here is my basic research.
Manufacturing facility in Maharashtra, has Genral API, corticosteroid and oncology API production blocks with US FDA and EU GMP accreditation.
Have a strong backward integration strategy and in the API segment where they produce the essential raw materials for their products.
Generic API products lists:
- Cardiovascular
- Anti asthmatic
- Anti-cancer
- Anti-coagulant
- Anti-diabetic
- Arthritis
- Cns agent
- Skin care
- Calcimimetic
- Decongestant
- Anti thalassaemic
- Analgesic
- Ophthalmologic
Manufacturing.
Six manufacturing plants and 2 R&D centres.
Customers
Supplies to Beverages, Nutraceuticals manufacturing companies, and Pharmaceuticals Industries across the world.
Financial
What I like from the above table is the decent PAT margin percentages.
Capex
250-300 crores of capex are lined up for the next two years.
Key Strengths
- Aarthi Industries Limited Parentage
- Set of established customers
- Unique products - specifically Caffeine - is a unique product, did not find many players.
- They can play both in the pharma and FMCG industries as a supplier
- API segment across areas, this is key for overall performance playing out.
- 6 manufacturing plants
- 2-3 are FDA approve, need to confirm this
Weakness
- Competitive space
- One of the plants has got some flangs from FDA, need to check this closely.
- Capex execution to be monitored
What to what out for
- First full year of operations will give a better view of financials and execution.
- Separate CEO and Management, new blood needed to grow this business
22 posts - 11 participants