On the third day of its IPO, Zenith Drugs Limited experienced a substantial uptake in investor interest, with the issue being subscribed 7.29 times. This robust figure signifies a continued and escalating confidence in Zenith Drugs’ market potential, reflecting a strong and sustained demand from both individual and institutional investors. The third day’s high subscription rate demonstrates the market’s positive reception to Zenith Drugs, underlining its perceived value and future growth prospects within the pharmaceutical industry.
Zenith Drugs Limited IPO – Fundamental Analysis:
Zenith Drugs Limited’s IPO demonstrates robust growth, with revenues climbing from ₹7,340.17 lakhs in 2021 to ₹11,451.91 lakhs in 2023. The company’s profitability is evident, with a profit jump from ₹302.92 lakhs to ₹515.33 lakhs, underlining its market success.
Equity and Net Asset Value (NAV) per share have nearly doubled, showcasing investor trust and intrinsic value growth. The company’s efficient asset and liability management, along with a high Return on Net Worth (RoNW) of 29.88%, reinforces its strong financial health.
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Zenith Drugs Limited IPO – Risks And Challenges:
Zenith Drugs faces risks from ongoing global legal proceedings, which could unfavourably affect its operations, cash flow, and financial stability. Strict regulatory adherence in the pharmaceutical industry adds complexity, with routine inspections and potential penalties for violations. Additionally, the company’s dependency on Active Pharmaceutical Ingredients (API) and the absence of long-term supplier contracts could hinder its ability to meet demand and maintain quality.
