Delta Investment Advisors

Sudeep Pharma Ltd

Sudeep pharma was incorporated in 1989 to manufacture excipients used in the Pharma industry to formulate drugs. It currently produces various mineral-based salts which are used as excipients to enhance API properties in drugs and nutritional properties in food, beverages and supplements. It also produces Specialty ingredients such as Micro-nutrient Premixes, Encapsulated ingredients, Liposomal Ingredients, etc. It serves clients such as Pfizer Inc, Aurobindo Pharma Limited, Cadila Pharmaceutical Limited, Mankind Pharma Limited, Merck Group, etc.

DRHP filed: June 24, 2025

RHP filed: November 17, 2025

BRLM: ICICI Securities, IIFL Capital Services

Auditor: BSR and Co

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Delta’s View : Subscribe for listing gains

Sudeep pharma is a good quality company. However, the IPO ask valuation of 13x P/S doesn’t give much comfort to invest at this point of time.

India being one of the largest producers of APIs depends heavily on import (~80%) for its excipient requirements (formulations used alongside API to make drugs). Sudeep Pharma has been manufacturing excipients for over 35 years and supplies to well-known clients such as Pfizer, Danone and Mankind. The company has delivered steady growth (28% sales CAGR for 10 years) and has consistently maintained ROCE > 20% (over 9 years). Its margins doubled in the last 2 years driven by a better product mix and focus towards domestic markets. The management plans on increasing business in the high growth and high margin products such as Special ingredients and Battery-grade mineral compounds. The promoter has skin in the game – He bought the entire stake of its JV partner JRS Pharma through a promoter entity in 2024.

Based on the current GMP of ~20%, one can expect decent listing gains, provided the GMP sustains.

While the business quality is good, the stock is expensive at current levels. A few quarters of performance and a more reasonable valuation would offer a better entry point.

The company’s valuation is expected to be very high at P/S TTM ~ 13.4x and P/E TTM ~ 50x. A price of over 13 times of its Sales far surpasses the valuation of its peer group. Sigachi industries had a P/S of 2.6x and Vikram Thermo had P/S of 4.4x.

Excipients are indispensable to pharma drug production. India currently imports 80% of its total excipients requirement, majorly from China, since it is the largest exporter of excipients. The company sources over 75% of its raw materials from domestic suppliers (FY25) which shows that it has less dependency on its supply from countries like China. Also, the company’s top 10 suppliers formed 64% of total raw materials cost with the largest supplier accounting for 23%, which shows no key dependency on a single supplier.

The company has maintained a great return on capital profile historically and had delivered Sales growth of 32% and 28% CAGR for the past 5 year and 10 year period respectively.

The company almost doubled its operating margins which were historically 20-21% to 40% in FY24. It continued the EBITDA margin in FY25 also at 38%. The margin expansion was led by multiple factors including change in product mix led by rise in the share of the higher margin Specialty ingredients segment and a sharp decrease in Freight & export expense due to growing share of domestic business.

The company entered into a JV in 2015 with Germany-based company’s Indian excipient manufacturing company – JRS Pharma, to expand excipients products. In 2024, Sudeep pharma’s promoter, Sujit Bhayani bought back the entire stake from JRS Pharma making the company 90% promoter owned. It has also raised capital through preference shares from WhiteOak Capital, Nuvama asset management, Dalmia family office trust, Mukul agrawal, Sanshi fund in 2025 pre-IPO. Nuvama asset management (through its Crossover Opportunities Fund Series III) bought 9% of the equity capital from promoter group in 2024.

The company is also in process to produce battery-grade Iron phosphate used in Li-ion batteries for EVs and energy storage systems from its Nandesari Facility I. It is already one of the largest producers of food grade Iron phosphate.

Business

The company produces excipients, mineral-based ingredients and special ingredients that find applications in enhancing API properties of pharma drugs and nutritional value for food staples, beverages and supplements.

It has served over 1,100 clients including 40 MNC blue-chip companies. Some of its key clients include Pfizer Inc, Intas Pharmaceuticals Limited, Mankind Pharma Limited, Merck Group, Alembic Pharmaceutical Limited, Aurobindo Pharma Limited, Danone S.A.

It conducted business in 70 countries as of FY2025. India’s share in total revenue formed 41% in FY25. It derived 23%, 14% and 10% revenue from North America, APAC and Europe respectively in FY25.

It operates in 2 segments -

Pharmaceutical, food and nutrition (PF&N) - Its primary business which includes excipients and mineral-based ingredients.

Product portfolio includes key mineral salts such as calcium, zinc, iron, potassium, magnesium, sodium, and copper. Dicalcium Phosphate, Calcium Carbonate, Magnesium Stearate, Iron Phosphate, etc.
These salts/compounds act as excipients and enhance API performance. Most common form of excipients are solid-oral (tablets, capsules and powders) which can be further classified on the basis of functionality such as Binders/Fillers (MCC, Dicalcium Phosphate PVP, Methylcellulose), Lubricants, Disintegrants, etc.
Excipients generally take 90-95% of drug composition but are only 5-10% of drug cost. Excipients are indispensable for drugs as they allow APIs to be taken and absorbed by the body by making them soluble, protecting them, improving taste, and its properties.
It is one of the largest producers of food-grade iron phosphate. Various other mineral compounds act as fortifying agents for infant nutrition, clinical nutrition, and the food and beverage sectors.

Specialty Ingredients (SI) - It started this business in 2021 through subsidiary Sudeep Nutrition Pvt Ltd. (SNPL). The formulated ingredients improve functionality, stability and properties of food and nutritional products.
Micro-nutrient Premixes - Constitute of vitamins and minerals, and allow for controlled release & increased nutrition. They are used in sports drinks, medical uses, infant nutrition and staple foods.
Liposomal Ingredients - Vitamins & minerals are encapsulated inside a tiny sphere (made of lipids) which eases absorption by the body.
Encapsulated ingredients - Food acids, minerals, preservatives, caffeine, DHA, etc. are encapsulated which helps in controlled release, stability and protection. Used as preservatives, delaying flavour release and controlling PH in beverages, confectionery, bakery, processed foods
Granulated Ingredients - Convert mineral / nutrient into granules. Granules behave much better in production lines and flow smoothly
Triturated Ingredients - Micronutrients are blended evenly onto a carrier (like calcium carbonate, starch, or a mineral). Triturates make sure that tiny nutrients don’t clump, segregate, or dose unevenly
Spray dried powders - It turns liquid nutrient solutions/emulsions into fine, stable, free-flowing powders by spraying them into hot air. The droplets dry instantly, preserving sensitive ingredients.
It has 3 manufacturing facilities in Gujarat, India, out of which 2 of them are used to produce excipients and 1 facility in Poicha, Gujarat (owned by its subsidiary SNPL) is used to produce special ingredients. Production capacity for excipients was 39,400 MT and for Special ingredients was 34,176 MT as of FY25. It also completed acquisition of a step-down subsidiary, Nutrition Supplies & Services (NSS), Ireland in 2025 which would help expand business in Europe with 3,252 MT annual capacity for manufacturing of vitamin and mineral blends.
Through its subsidiary Sudeep Advanced Materials Private Limited (SAMPL), it is in process of setting up a manufacturing facility to produce battery grade iron-phosphate used in Li-ion phosphate batteries for EV and energy storage systems.

Issue details

Fresh Issue up to 95 cr
Capex towards machinery for one of the production facilities for excipient production and different grades of iron phosphate (Li-ion battery applications). Est ~ 76 cr
General Corporate Purposes (GCP)

Offer For Sale up to 13.5 million shares
Sujit Jaysukh Bhayani, up to 3.6 million shares.
Sujeet Jaysukh Bhayani HUF, up to 8.4 million shares.
Shanil Sujit Bhayani, up to 0.75 million shares.
Avani Sujit Bhayani, up to 0.75 million shares.

Promoters and Leadership

Sujit Jaysukh Bhayani is the founder of the company and is currently the Managing Director and Chairman of the company at age 57
He had studied B.Sc in Chemistry from University of Tulsa (Oklahama, USA) and High school from Wisconsin, USA.
Shanil bhayani, son of Sujit is serving as Director of the company (Age → 32). He studied B.Sc in Business administration from Drexel university, USA.
Ajay Shrirang Kandalkar is the Whole-time director of the company. He oversees the Production, Engineering, Quality, and Stores functions at our Company. He joined the company as Vice President (Operations) in 2023 and had worked as General Manager (Operations) at Food Service (India) and Sudeep Nutrition, and Senior General Manager – Operations at Drytech Processes (India).
Its corporate promoters - Riva Resources Private Limited and Sujeet Jaysukh Bhayani HUF.
Riva Resources, set up in 2024 is owned entirely by Bhayani Family Trust. Sujit Bhayani is Trustee and beneficiaries are Avni Bhayani Trust, Shanil Bhayani Trust and Rhea Bhayani Trust.
Sujit Jaysukh Bhayani HUF, incorporated in 1994 has Sujit bhayani as Karta and Shanil Sujit Bhayani, Avani Sujit Bhayani and Rhea Sujit Bhayani are the coparceners of SJB HUF.

Shareholding Pattern

Promoters own 91% of the company and Nuvama asset management (through its Crossover Opportunities Fund Series III) owns 9% of the equity capital of the company.
The company entered into a JV with Rettenmaier Asia Holdings GMBH (JRS Pharma GmbH + Co. KG) in 2015 to leverage JRS Pharma’s expertise in excipients manufacturing. Sudeep pharma bought back the entire stake of the JV partner through promoter entity Riva Resources Pvt Ltd.
Riva resources Pvt Ltd. owns 41% of the equity capital, which is owned entirely by Bhayani family trust where Sujit Bhayani is trustee.
The company raised 158 cr INR through preference shares from Nuvama, WhiteOak, Dalmia family office trust, Mukul agrawal, Sanshi fund in 2025 pre-IPO.

Financial snapshot

Industry & Competition

Related Party Transactions

The company purchased 47 cr of raw materials from Supplier - Star Pharm chem International LLP, which is a related party to the company.

The company sold 33 cr of goods (8% of sales) to Microcellulose Weissenborn (A foreign group company belonging to Rettenmaier/JRS group - Its JV partner) in FY23.

The company paid remuneration of 57 cr and 46 cr to Sujit Bhayani (Chairman and Promoter) in FY22 and FY23 respectively.

Litigations and controversial activities

No material litigations in the past against the company.
Not found any material controversies or media allegations involving the company.