SME Pharma Stock-Asston Pharmaceuticals Ltd gets listed on Bombay Stock Exchange; PE of 25x, ROE of 68% and ROCE of 50%

Established in 2019, Asston Pharmaceuticals Limited is a prominent player in the manufacturing and export of pharmaceutical formulations and nutraceutical products, marketed under its "Asston" brand. The company operates on a diversified business model that includes direct manufacturing and marketing of its products, contract manufacturing for third-party marketers through license agreements, and significant export sales, primarily targeting African markets. Its comprehensive product portfolio spans pharmaceuticals, including tablets, capsules, syrups, injectables, ophthalmics, and creams, as well as nutraceuticals like B-complex tablets, Cyproheptadine-based supplements, and iron tonics.

Asston Pharmaceuticals boasts a robust intellectual property portfolio, holding over 150 registered trademarks and a wide array of registered brands. The company's manufacturing capabilities are anchored by a USFDA-approved facility located in Ambernath, Maharashtra. This state-of-the-art unit is approved for both pharmaceutical and nutraceutical production, featuring dedicated floors for each segment to ensure stringent regulatory compliance and efficient process separation.

Asston Pharmaceuticals' IPO, which was open for bidding from July 9 to July 11, 2025, saw an overwhelming response, being subscribed 173.53 times. Despite this strong investor interest, the scrip listed at Rs 119, a 3.25 per cent discount to its IPO price band of Rs 115-123 per share. The IPO consisted of a fresh issue of 22,41,000 equity shares, which resulted in the dilution of the promoter and promoter group shareholding from 68.76 per cent pre-issue to 50.66 per cent. The company plans to utilise the net proceeds from the IPO to fund capital expenditures for new machinery, meet incremental working capital requirements, repay or prepay existing borrowings, and for general corporate purposes.

For the period ended May 31, 2025, Asston Pharmaceuticals reported a revenue from operations of Rs 6.19 crore and a net profit of Rs 1.32 crore. The company currently holds a market capitalisation exceeding Rs 100 crore. Its shares exhibit a Price-to-Earnings (PE) ratio of 25x, aligning with the industry average, and demonstrate strong profitability metrics with a Return on Equity (ROE) of 68 per cent and a Return on Capital Employed (ROCE) of 50 per cent.

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