IPO closes on 10 Dec'25
Corona Remedies Ltd
Minimum Investment
₹ 14,868 / 14 shares
Our Verdict:
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- Corona Remedies Ltd (CRL) has built a solid growth trajectory, delivering a revenue CAGR of 16% and net profit CAGR of 33% over FY23–FY25, supported by steady margin expansion. Its established portfolio and disciplined execution provide clear visibility for sustained performance.
- CRL continues to outperform the broader Indian Pharmaceutical Market, standing as the second fastest-growing player among the top 30 pharma companies. Its strength in chronic and sub-chronic therapies, along with the encouraging ramp-up of recent launches, reinforces its market positioning.
- Valuations, while fully priced at a P/E of 44x, remain broadly aligned with the industry average. We believe these valuations are justified, as the company is poised to enter its next phase of growth. Its planned acquisitions, expanded launch pipeline and the upcoming commissioning of a new hormone manufacturing facility are expected to enhance therapeutic depth and strengthen profitability.
- Given the company’s robust fundamentals, clear growth triggers and consistent execution, investors may consider subscribing to the IPO with a long-term perspective.
About the company
Founded in
27 Aug'04
Managing director
Niravkumar Mehta
- CRL boasts a diversified product portfolio with 71 brands across various therapeutic areas, including women’s healthcare, cardio-diabetes, pain management and urology. These segments together contributed 68.26% of domestic sales for the MAT (Moving Annual Total) ending June 2025, with a robust CAGR of 22.4% from MAT June 2022 to MAT June 2025. Other areas in the portfolio include multispecialty pharmaceuticals such as vitamins, minerals, nutrition, gastrointestinal and respiratory segments.
- CRL operates two manufacturing facilities in Gujarat and Himachal Pradesh, with a combined installed capacity for formulations of 1,285.44 million units annually, spread across 11 production lines. Additionally, the company is in the process of setting up a new hormone manufacturing facility in Gujarat, which is expected to begin operations in Q1FY27.
STRENGTHS
- Market Leadership: CRL is the second-fastest-growing company among the top 30 pharmaceutical companies in the Indian Pharmaceutical Market (IPM) based on domestic sales from MAT June 2022 to MAT June 2025. During this period, its domestic sales grew at a CAGR of 16.77%, significantly outperforming the IPM's growth of 9.21%.
- Growing Market Share: CRL ranks 7th among the top 30 pharma companies in terms of market share gains during the same period, underscoring its consistent outperformance and strengthening competitive position.
- Impressive Growth: Revenue from operations has increased at a CAGR of 16% between FY23 and FY25. EBITDA and net profit have grown at even higher CAGRs of 35% and 33%, respectively, during the same period.
- Improving Margins: EBITDA margin has consistently improved from 15.27% in FY23 to 20.55% in FY25, further reaching 20.72% by Q1FY26. Similarly, net profit margin has improved from 9.61% to 12.49% in FY25, and further to 13.33% by Q1FY26.
- Solid Return Metrics: CRL exhibits impressive return ratios, with a Return on Equity (ROE) of 27.50% and a Return on Capital Employed (ROCE) of 41.32% as of FY25, reflecting the company's effective utilization of capital.
RISK FACTORS
- Trademark Issues: CRL's portfolio includes 71 brands and 194 registered trademarks, with 29 pending trademark applications. However, 67 trademarks are opposed, objected to, refused or abandoned under certain classes. If the company fails to secure trademarks for its products and brands or protect other proprietary information, it could negatively impact its business and operational performance.
- Concentration in Certain Segments: A significant portion of CRL’s revenue — nearly 65% in Q1FY26 — comes from women’s healthcare, cardio-diabeto and pain management therapies. Underperformance in these segments, or stronger market acceptance of competing products, may materially affect the firm’s revenue and operational results.
- Dependence on C&F Partners: CRL relies heavily on a few carrying and forwarding agents, with the top five contributing ~43% of revenue in Q1FY26. Any loss of these partners, deterioration in their financial health, changes in their product demand or challenges in expanding the distribution network could adversely impact the firm’s business continuity and growth prospects.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 655.37 crore
Fresh Issue
₹ -
OFS
₹ 655.37 crore
Price range
₹ 1,008 - 1,062
Lot size
14 shares
Issue Objective
This issue is entirely an Offer for Sale (OFS), meaning the company itself will not receive any funds from the proceeds. Instead, all proceeds will go directly to the selling shareholders.
Dates
Bidding open
8 Dec'25
Bidding close
10 Dec'25
Allotment date
11 Dec'25
Refund date
12 Dec'25
Listing
15 Dec'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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