- Our view
- AVOID
- Market cap then
- ~INR 103.48 Cr.
- Price band
- INR 120 to 128 per share
Curis Lifesciences manufactures oral solids, liquid orals and ointments at its Ahmedabad facility. Minerva Capital Research Solutions rates the IPO AVOID, citing stretched working capital, inconsistent growth and a valuation it considers fully priced at the issue price.
About Curis Lifesciences
Curis Lifesciences began in 2010 as M/s Loreto Pharmaceuticals, a partnership firm, and was converted to Curis Lifesciences Pvt Ltd. in 2016. It manufactures oral solids, liquid orals and ointments at its facility in Ahmedabad, Gujarat. The facility has accreditations including WHO-GMP, FDA Philippines, MOH Yemen and PPB Kenya. Its business includes job work, contract manufacturing and direct exports.
Curis Lifesciences IPO Details
| Particulars | Details |
|---|---|
| Price Band (INR) | 120 to 128 |
| Face Value (INR) | 10 |
| Implied M.Cap (INR Cr.) | 103.48 |
| Exchange | NSE SME |
| Min. Lot Size (Retail | HNI) | 2,000 | 3,000 |
| Issue Opens on | 7-Nov’25 |
| Issue Closes on | 11-Nov’25 |
| Listing Date | 14-Nov’25 |
| No. of shares pre-issue (#) | 59,34,434 |
| Fresh Issue of Shares (#) | 21,50,000 |
| Offer for Sale (#) | - |
| No. of shares post-issue (#) | 80,84,434 |
| Funds Mobilized: Fresh Issue of Shares (INR Cr.) | 27.52 |
| Funds Mobilized: Offer for Sale (INR Cr.) | 0.0 |
The issue is entirely a fresh issue. The report lists the registrar as MUFG Intime India and the book running lead manager as Finaax Capital.
Use of Issue Proceeds
- Manufacturing upgrade: Capital expenditure towards upgradation of manufacturing: 2.44 Cr.
- Storage facility: Construction of storage facility: 3.61 Cr.
- Borrowings: Repayment of borrowings: 1.86 Cr.
- Product registration: Product registration in other countries: 2.69 Cr.
- Working capital: Funding working capital: 11.25 Cr.
- General corporate purposes: [●]
Strengths
- Storage expansion: Raw material storage capacity is planned to rise from 25 Tons to 75 Tons, and finished goods storage from 132 Cubic Meter to 528 Cubic Meter. Management estimates productivity could increase by approximately 20% as a result.
- Export registrations: The company plans to register additional products, particularly in Kenya and Congo, with the stated aim of increasing sales volumes and improving profit margins.
- Higher planned utilisation: Oral Tablet utilisation is projected to increase from 58.20% to 65.42% in FY27, while External Preparation utilisation is projected to rise from 36.83% to 59.85% in FY27.
- Tablet-led product mix: Oral Tablets represented 70.02% of FY25 revenue share. The report notes that tablets have higher gross margins than liquid products.
The report also notes a pending order book of Rs. 14.4 crores as of Sep 2025. It says inadequate storage currently limits the company’s ability to fully use its manufacturing capabilities.
Curis Lifesciences Key Financials
| Particulars (INR Cr.) | FY23 | FY24 | FY25 | 31-Jul’25 |
|---|---|---|---|---|
| Revenue (excl. other inc.) | 35.4 | 35.6 | 49.1 | 19.5 |
| Growth Rate Y-o-Y % | - | (0.3)% | 38.2% | |
| Gross Margin | 7.2 | 12.5 | 13.9 | 5.7 |
| Gross Margin % | 20.2% | 35.1% | 28.3% | 29.1% |
| EBITDA (excl. other inc.) | 3.3 | 8.4 | 9.6 | 4.2 |
| EBITDA % | 9.3% | 23.7% | 19.5% | 21.7% |
| PAT | 1.9 | 4.9 | 6.1 | 2.9 |
| PAT % | 5.1% | 13.6% | 12.3% | 14.7% |
| Debt (Short+Long) | 16.2 | 17.1 | 15.6 | 15.3 |
| Debt/Equity | 16.18x | 2.91x | 0.96x | 0.80x |
| NWC (days) | 37 | 125 | 148 | 150 |
| ROE % | 2752% | 141.5% | 55.25% | 16.26% |
| ROCE % | 14.83% | 33.57% | 27.83% | 11.65% |
| CFO / EBITDA % | 102% | 3.3% | (18.4%) | 13.8% |
NWC includes Inventory, Receivables & Payables; & NWC days is computed as % of rev.
Revenue and PAT rose in FY25 after little revenue growth in FY24. The report highlights the increase in working-capital days and the negative FY25 CFO / EBITDA figure as monitorables.
Business and Product Mix
In FY25, contract manufacturing for merchant exports accounted for 52.11% of business verticals, contract manufacturing for domestic suppliers 45.13%, and loan license manufacturing (job work) 2.76%. The company is reducing exposure to job work, which the report describes as a lower-margin activity. Direct export/own brand marketing contributes less than 1% of revenue from operations.
The report lists oral tablet capacity at 1,38,06,00,000 tablets/year, oral liquid capacity at 10,80,000 Litres/year and external preparation capacity at 2,70,000 Kg/year. The promoters named are Dharmesh Dasharathbhai Patel, Piyush Gordhanbhai Antala and Jaimik Mansukhlal Patel.
Peer Comparison
The report names Sotac Pharmaceuticals Ltd. and Lincoln Pharmaceuticals Ltd. as peers. It compares Curis Lifesciences’ FY25 P/E of 16.96x with 18.4x for Sotac and 12.1x for Lincoln. It states that Lincoln has higher revenues and margins and is available at 12x.
IPO Valuation and Our View
At the issue price, the IPO is valued at a P/E ratio of 16.96x based on FY25 PAT. Minerva Capital Research Solutions considers the issue fully priced, citing the business and industry, stretched working capital and inconsistent growth pattern. The recommendation is AVOID.
- INR 120 to 128 per share
- IPO price band
- ~INR 103.48 Cr.
- Market capitalisation
- 16.96x
- P/E based on FY25 PAT
- AVOID
- Recommendation
Key Risks
- Competition: The report says tough competition in India’s generic drug industry may limit growth and margins.
- Regulatory exposure: The business faces risks from price caps in India and approval requirements in export markets.
- Limited product development: The company is not spending on research and development for formulations and holds no patent.
- Receivables: Receivables increased 124% in 4 months, which the report identifies as a key monitorable.
- Cash conversion: EBITDA-to-CFO conversion fell from 102% to -18%; the report says the company is struggling to convert profit into cash.
Our View
The planned storage upgrades and product registrations may support higher utilisation, but the report flags stretched working capital, inconsistent growth and weak cash conversion. At the stated valuation, Minerva Capital Research Solutions rates the IPO AVOID.
Standard disclosures
- Research Analyst has served as an officer, director or employee of subject company(ies): No
- We or our associates have received compensation from the subject company(ies) in the past 12 months: No
- We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past12 months: No
- We or our associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company(ies) in the past 12 months –No
- We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report –No
- We or our associates or Research Analyst or his/her relative's financial interest in the subject company(ies)- No
- Nature of financial interest in subject company, if any –Nil
- We, our associates or Research Analyst have actual/beneficial ownership of 1% or more securities of the subject company (ies) at the end of the month immediately preceding the date of publication of Research Report – No
- Subject company (ies) may have been client during twelve months preceding the date of distribution of the research report-No.
- We or our Associates or Research Analyst are engaged in market making of subject company – No
- By referring to any particular sector, Minerva Capital Research Solutions does not provide any promise or assurance of favorable view for a particular industry or sector or business group in any manner. The investor is requested to take into consideration all the risk factors including their financial condition, suitability to risk return profile and take professional advice before investing. Such representations are not indicative of future results.
- There are either no material conflict of interests or all existing and potential conflict of interest are disclosed herein.
Regulatory disclosures
Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).
Registration granted by SEBI and certification from NISM in no way promise or guarantee that the research recommendation will provide any assured, minimum or risk-free return to the investors.
The research report serves as general information and does not account for individual investment goals, financial situations, or needs. Minerva Capital Research Solutions strives to provide reliable and comprehensive information, sourced from what are believed to be trustworthy channels. However, this information has not been independently verified by Minerva Capital Research Solutions or its analysts, and no guarantees are made regarding its accuracy or completeness. The opinions expressed in this report reflect the views of the research analyst at the time of publication and may change over time. Minerva Capital Research Solutions and its affiliates as on date of publication of this report may or may not hold any positions in the securities discussed. The views presented are general and do not consider individual risk tolerance or investment objectives; therefore, readers should seek independent professional advice before making investment decisions. Minerva Capital Research Solutions does not guarantee a favorable outlook for any specific industry or sector and urges investors to consider all relevant risk factors, including their financial circumstances, before investing. The analyst certifies that their views accurately represent their personal opinions on the companies discussed and that no part of their compensation is tied to specific recommendations made in this report. This material should not be interpreted as an offer or solicitation to buy or sell securities in jurisdictions where such offers would be illegal. Consequently, brokerage and investment services described herein are not available to Canadian or U.S. persons. Distribution outside India requires prior written consent. This Research Report assumes that the recipient will assume all risks associated with its contents. If there are any disagreements or dissatisfaction with this report or its disclaimer, the only recourse is to cease using it. Minerva Capital Research Solutions and its affiliates will not be liable for any direct or indirect losses resulting from the use of this report. Recipients are required to adhere to these restrictions. The material is for the personal use of authorized individuals and does not constitute a solicitation or offer to buy or sell any securities in jurisdictions where such actions would be illegal.
For any queries or grievances: Mr. Nishant Gupta | Email: nishant.gupta@mcapital.in or guptanishant.iimi@gmail.com | Contact Number: 8171433387 | Website: www.mcapital.in | Twitter: @Mcapital_In
- Research Analyst for this research report : Mr. Shubham Upadhyay (+91-9953459775)
Rating rationale
Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.
- Buy:> 15%
- Hold: -5% to 15%
- Reduce: -15% to -5%
- Sell: <-15%