Amanta Healthcare

About Amanta Healthcare

Incorporated in 1994 in Gujarat, Amanta Healthcare develops, manufactures and markets sterile liquid parenteral products from its facility in District Kheda. Its manufacturing lines cover Large Volume Parenterals (LVP), Small Volume Parenterals (SVP) and Steriport, with total installed capacity of 33.19 Crore units per annum and utilization of 96% in FY25. Its products serve six therapeutic segments: fluid therapy, formulations, diluents, ophthalmic, respiratory care and irrigation solutions.

Amanta Healthcare IPO Details

Objects of Issue

• Steriport manufacturing line: Funding capex for setting new manufacturing line: INR 70.00 Cr.
• SVP manufacturing line: Funding capex for setting new manufacturing line: INR 30.13 Cr.
• General Corporate Purpose: [●]

Strengths

• Planned Steriport expansion: Capacity is planned to rise from 6.62 Cr. units to 12.01 Cr. units, with commencement scheduled for 01-Jan’26. The report describes Steriport as a high value added segment that could help sustain and potentially improve margins.
• Planned SVP expansion: Capacity is planned to increase from 20.91 Cr. units to 31.69 Cr. units, with commencement scheduled for 01-Jan’27.
• Promoter experience and distribution: Promoter and MD Mr. Bhavesh Patel has over three decades of pharmaceutical business experience. The company has a network of ~320 distributors and stockists across India.
• Product and geographic reach: Its portfolio includes 47 products registered across 120 international jurisdictions. FY25 domestic-to-export sales mix was 67 : 33; the USA contributed 0.04% of FY25 sales.

Amanta Healthcare Key Financials

Revenue declined in FY25 while EBITDA and PAT increased. Debt/Equity also decreased over the three reported years.

IPO Valuation and Our View

The issue is valued at a P/E ratio of 46.6x based on FY25 PAT. The report weighs the promoter’s experience, established market position, distributor network, planned capacity expansion and product diversity against high debt, intense competition and packaging-material price volatility. Our recommendation is May Subscribe.

INR 120 to 126 per share

IPO price band

May Subscribe

Recommendation

Shareholding

Key Risks

• Execution of expansion plans: Future sales growth is pegged to proposed capacity expansion. A delay in starting operations could offset revenue growth; existing capacity utilization was 87%, 91% and 96% for FY23, FY24 and FY25, respectively.
• Debt: FY25 Debt/Equity of 2.12x remains a key monitorable, although it was lower than 3.57x in FY23 and 3.18x in FY24.
• Costs and foreign exchange: Operating margins are susceptible to volatility in imported LDPE and PP packaging materials linked to crude oil prices. Export sales contributing ~33% of total sales expose the company to foreign exchange fluctuations.
• Other overhangs: Contingent liabilities are ~INR 11.6 Cr. A litigation proceeding regarding sterility failure of a product, filed in 2013/2014, remains an overhang.

Our View

Amanta Healthcare’s planned capacity additions, established distribution network and diversified product profile support the IPO case. High leverage, competition and sensitivity to packaging-material prices remain important counterweights. The recommendation is May Subscribe.

Standard disclosures

• Research Analyst has served as an officer, director or employee of subject company(ies): No
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• We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past12 months: No
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• Nature of financial interest in subject company, if any –Nil
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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.

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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%