Akums Drugs, a prominent CDMO in India, is recognized for its diverse client base, strong R&D capabilities, and strategic position across the pharmaceutical value chain. While the company has shown top-line growth, its profitability has been impacted by non-operational factors like fair value adjustments.
Key risks to consider include geographic concentration, potential manufacturing or quality control issues, and regulatory scrutiny. The IPO is valued at a reasonable P/E ratio of approximately 28 times. Given the company's market leadership, growth prospects, and valuation, a cautious approach to the IPO is advised.
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