The pharmaceutical sector has consistently offered investors a mix of stability, global opportunity, and innovation. Now, Amanta Healthcare, a sterile pharmaceutical manufacturer, is entering the capital markets with its IPO scheduled from 1st to 3rd September 2025. The company aims to raise INR 126 crore through a fresh issue at a price band of INR 120–126 per share.
At first glance, Amanta Healthcare IPO valuations may appear steep, with a post-issue P/E multiple of ~46x. To understand whether this premium is justified, investors must compare Amanta not in isolation, but against its listed peers. On one side is Denis Chem Lab, a smaller-cap player in sterile injectables, and on the other, Zydus Lifesciences, a large-cap diversified pharma major.
This comparison offers a balanced lens—juxtaposing Amanta against a close competitor of similar scale, while also benchmarking it against an industry giant.
Amanta Healthcare at a Glance
Amanta Healthcare, founded in 1994, specialises in Large Volume Parenterals (LVPs) and Small Volume Parenterals (SVPs), with a WHO-GMP certified facility in Hariyala, Gujarat. Its advanced manufacturing processes—Aseptic Blow-Fill-Seal (ABFS) and Injection Stretch Blow Moulding (ISBM)—enable contamination-free production.
- Product Basket: 45+ generics across IV fluids, ophthalmics, respiratory care, and irrigation solutions.
- Markets: Present in 19 countries, with 112 product registrations; 316+ domestic stockists supported by 100+ sales reps.
- Financial Turnaround:
- FY23: Loss of INR 2.1 crore
- FY24: Profit of INR 3.6 crore
- FY25: Profit of INR 10.5 crore
- Margins: EBITDA stable at ~22%, PAT margin improved from (0.8)% (FY23) to 3.8% (FY25).
- Leverage: Debt-Equity reduced from 3.4x (FY23) to 2.0x (FY25).
The IPO proceeds will fund new LVP and SVP manufacturing lines to ease capacity constraints, as utilisation levels are already above 90%.
Amanta Healthcare vs Denis Chem vs Zydus Lifesciences: Valuation Check
At the upper band of INR 126, Amanta is being valued at levels much higher than Denis Chem and even Zydus. Here’s how it looks in context:
| Ratio | Amanta Healthcare (IPO) | Denis Chem Lab | Zydus Lifesciences |
|---|---|---|---|
| P/E | ~46.7x | 15.9x | 21.3x |
| P/S | 1.78x | 0.74x | 4.21x |
| P/B | 3.77x | 1.53x | 4.19x |
| Debt-Equity | 2.02x | 0.01x | 0.13x |
| Current Ratio | 1.20 | 2.70 | 1.35 |
| RoE | 12.42% | 9.7% | 21.2% |
| RoCE | 13.7% | 13.9% | 24.3% |
| EBITDA Margin | 22.1% | 10.5% | ~20–22% |
| PAT Margin | 3.8% | 4.7% | 20.6% |
Amanta Healthcare vs Peers: What These Numbers Tell Us
- Valuation Premium: Amanta demands a P/E of ~46x, far above Denis (16x) and Zydus (21x). Investors are being asked to pay for future growth.
- Margins & Efficiency: Operationally, Amanta holds its ground with EBITDA margins (~22%) on par with Zydus and well ahead of Denis.
- Balance Sheet: Debt-Equity remains elevated at 2.0x, unlike its peers, who operate nearly debt-free. IPO funds will be key to easing this burden.
- Liquidity: A Current Ratio of 1.2 suggests sufficient liquidity, but weaker than Denis’s cushion of 2.7x.
- Returns: RoNW of 10.9% shows improvement, but trails Zydus’s robust 21%.
In short, Amanta sits between Denis and Zydus—leaner and faster growing than Denis, but nowhere near the scale of Zydus. Its IPO multiples reflect not today’s earnings power, but tomorrow’s growth promise.
Amanta Healthcare Peer Comparison Analysis
When we compare Amanta Healthcare vs Denis Chem vs Zydus Lifesciences, two clear narratives emerge:
- Against Denis Chem Lab – Amanta positions itself as a stronger mid-tier sterile injectables company with higher margins, but is demanding a valuation multiple almost 3x higher.
- Against Zydus Lifesciences – Amanta aspires to play in the big league, but while its operational efficiency is comparable, scale and balance sheet strength still lag far behind.
Let’s break this down:
1. Amanta Healthcare Valuation Check
- At a P/E of ~46.7x, Amanta is significantly more expensive than Denis Chem (15.9x) and even Zydus (21.3x).
- Its P/S ratio of 1.78x lies in the middle—higher than Denis (0.74x) but comfortably lower than Zydus (4.21x).
- P/B at 3.77x also shows Amanta being priced like a larger pharma company, suggesting the market is attaching a growth premium.
Takeaway: Amanta Healthcare peer comparison analysis clearly indicates that investors are paying up for future growth rather than its current earnings base.
2. Profitability & Returns
- EBITDA margins of ~22% put Amanta shoulder-to-shoulder with Zydus and well ahead of Denis (10.5%). This is a major strength.
- PAT margins (3.8%), however, remain modest compared to Zydus’s 20.6%. This underlines that while operational efficiency is strong, net profitability is still catching up.
- RoE of 10.9% is a clear improvement from previous years and is competitive against Denis (9.7%), though still far from Zydus’s 21%.
Amanta is efficient at the operating level but has yet to translate that fully into bottom-line strength.
3. Balance Sheet & Liquidity
- Debt-Equity ratio of 2.0x is notably higher than Denis (0.01x) and Zydus (0.13x). This leverage makes Amanta riskier, but IPO proceeds will be partly used for capacity expansion, indirectly reducing pressure.
- Current ratio of 1.2x provides adequate liquidity but trails Denis’s strong 2.7x and is slightly below Zydus’s 1.35x.
Balance sheet strength is where Amanta lags its peers most. Investors will expect visible deleveraging in the coming years.
4. Scale of Operations
- Amanta’s FY25 revenue of INR 275 crore is bigger than Denis’s INR 176 crore but a fraction of Zydus’s INR 14,000+ crore.
- This middle-ground positioning makes Amanta an interesting growth candidate, but also highlights why it needs capital infusion for expansion.
Analyst Verdict: Neutral to Positive
Amanta Healthcare’s IPO is a story of contrasts. On one hand, it demands a premium valuation multiple that is higher than both its small-cap peer, Denis Chem and large-cap giant Zydus Lifesciences. On the other hand, it brings to the table:
- Strong EBITDA margins (~22%),
- An improving RoNW and RoCE,
- A successful financial turnaround, and
- A clear growth roadmap via capacity expansion.
Yes, leverage remains high, and revenue growth has slowed in FY25. But these risks are counterbalanced by a stable operating profile and a credible plan to expand production capacity at a time when utilisation is already near 90%.
Final Word
For long-term investors with a 3–5 year horizon, Amanta Healthcare offers a growth-backed pharma story. While short-term listing gains may be uncertain given the rich valuations, the fundamentals and expansion strategy make this IPO best suited for investors willing to ride the company’s next growth phase.
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