Parabolic Drugs Ltd (PDL) is a manufacturer of API and API intermediaries. It is also expanding its presence in CRAMs. The company, over the last five years, witnessed a revenue and PAT CAGR of 67.5% and 59.3% respectively. PDL proposes to raise Rs2,000mn through issue of fresh equity, which will be utilized for capacity expansion, investment in its subsidiary Parabolic Research Labs Ltd and repayment of debt.
PDL has a wide product range in the antibiotics segment which it markets domestically and in international markets. The company aims to leverage its existing
capabilities to expand in the CRAMS segment.
PDL has witnessed a revenue and PAT CAGR of 67.5% and 59.3% during FY05 to FY09. Over this period, the company has diversified its revenue base and sales to top five customers in value terms has reduced from 57.59% in FY07 to 34.84% in FY09.
The company is valued at a P/E of 10.5x at the lower price band and 11.9x on the upper price band. Considering the post issue equity, PDL will be valued at P/E of 16.2x on the lower price band and 17.4x on upper price band.
