Largest exporter of certain niche products: SLL offers 38 APIs focusing on high value products with limited competition. It has been consistently the largest exporter of Chlorpheniramine Maleate (used in anti-histamine and anti-allergic drug; 45-50% share) and Ketamine Hydrochloride (pain management drug; 60-65% share) from India from FY17-21. It is also among the largest exporters of Salbutamol Sulphate (anti-asthmatic drug) with 31% share in FY21. SLL derives ~75% of its revenue from exports, with low geographic concentration and well-balanced presence between regulated and semi/non-regulated markets.
The issue is reasonably valued at 17.8x FY21 P/E (post issue basis) v/s its peers (available at avg. P/E of 22.8x), while it enjoys similar growth trajectory. Hence we recommend Subscribe.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
0
0
