Navana Pharmaceuticals Limited – which made its stock market debut yesterday under the 'N' category – has registered a handsome year-on-year growth in its business for the first nine months of fiscal 2021-22, thanks to massive sales in both local and foreign markets.
The drug maker's profit increased by 45% to Tk19.18 crore, compared to the same period of FY21.
In the July to March period of FY22, its revenue stood at Tk366.22 crore, which was not only greater than that in the same nine months of the previous year but also higher than the annual revenue of FY21. The revenue in FY21 was Tk360.65 crore.
However, EBL Securities pointed out in its initial public offering (IPO) note about Navana Pharma that the company's profit margin for the nine-month period is lower than the industry average.
The note also reads that Navana Pharma's short-term loans increased by around 144%, pushing its financial expenses up by 158%.
EBL Securities further said that the drug maker's board of directors lacks diversity as it comprises mostly members from one family. Hence, any family dispute or conflict of interest can directly induce adversities in the company's future.
Earlier, the Bangladesh Securities and Exchange Commission (BSEC) allowed Navana Pharma to raise Tk75 crore through an IPO.
Its cut-off price was fixed at Tk34 per share through the electronic subscription system.
Qualified and institutional investors including mutual funds got 25% of shares at the cut-off price, whereas individual investors got the remaining shares at Tk23.8 each – a 30% discount on the cut-off price.
Incorporated in 1986, Navana Pharma operates in two categories of pharmaceuticals: veterinary and human health.
The veterinary division manufactures and markets more than 123 high-quality medicines and feed supplements that include poultry, dairy, and aqua products.
While the human health division produces more than 277 drugs as tablets, capsules, oral liquids, ampoules, dry powder vials, powders for suspension, eye drops, creams and ointments, and more.