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Bio Medica Laboratories Ltd. (BMLL) is engaged within the manufacturing of Pharmaceutical Parenteral Formulations. It manufactures generic medicine within the type of injectables specifically Liquid Injections and Dry Powder Injections. These injectables can be found in each single dose and multi dose types, catering each human and veterinary wants. Its merchandise tackle a variety of medical wants and preferences.
The Company operates on a B2B enterprise mannequin by means of contract manufacturing and doesn’t deal immediately with the tip customers. The firm manufacture formulations for varied firms in accordance with their particular necessities and specs for the kind of formulation wanted. Additionally, BMLL enters into agreements with them, permitting their identify and tackle to be displayed on the packaging as “Technical Collaborator” or “marketed by” alongside Company’s identify because the producer. It holds Good Manufacturing Practices (GMP) certificates issued by Food & Drugs Administration, Madhya Pradesh, for complying with established GMP requirements and tips. The firm maintains stringent high quality management requirements all through your complete manufacturing course of. This ensures that its merchandise constantly meet related high quality requirements earlier than they attain the market.
BMLL additionally possesses a Good Laboratory Practices (GLP) certificates issued by the Food & Drugs Administration, Madhya Pradesh, demonstrating its dedication in sustaining requirements of high quality and compliance in laboratory operations. Its in-house laboratory is provided with varied devices, reminiscent of HPLC (High-Performance Liquid Chromatography), GC (Gas Chromatography), UV-Vis (Ultraviolet-Visible Spectrophotometer), polarimeter, and different superior equipments and devices. This complete array of instruments permits it to conduct a variety of exams and analyses effectively and precisely. Further, the Company continues to learn from the varied incentives prolonged by the federal government to help the MSME section. Under the MSME Incentive Scheme 2021.
The firm manufactures pharmaceutical formulations based mostly solely on formulation and processes which might be publicly out there and never protected by any patent rights. As a consequence, it doesn’t require buying patents or sustaining an in-house analysis and growth division. Additionally, the corporate ensures that each one required requirements and environmental circumstances, together with the suitable temperature, are maintained all through the manufacturing course of till the product is dispatched. Its income combine contains sale of manufactured items and traded items. As of April 30, 2026, it had 56 workers on its payroll.
The firm is popping out with its maiden e-book constructing route combo IPO of 3772000 fairness shares of Rs. 10 every to mobilize Rs. 52.43 cr. on the higher cap. The firm has introduced a worth band of Rs. 132 – Rs. 139 per share. The IPO consists of 3395000 recent fairness shares value Rs. 47.19 cr. (on the higher cap), an Offer for Sale (OFS) of 377000 fairness shares value Rs. 5.24 cr. (on the higher cap). The minimal software to be made is for 2000 shares and in multiples of 1000 shares thereon, thereafter. The IPO opens for subscription on May 21, 2026, and can shut on May 25, 2026. The IPO represent 30% of the post-IPO paid-up capital of the corporate. The shares will probably be listed on NSE SME Emerge. From the web proceeds of the recent fairness share difficulty, it can make the most of Rs. 6.50 cr. for reimbursement/prepayment of sure borrowings, Rs. 28.50 cr. for capex on organising of recent manufacturing facility on the current premises, and the remaining for normal company functions.
The IPO is solely lead managed by Narnolia Financial Services Ltd., and Skyline Financial Services Pvt. Ltd. is the registrar to the difficulty. Prabhat Financial Services Ltd., is the market maker. The IPO is underwritten to the tune of 15.01% by Narnolia Financial, and 84.99% by Giriraj Stock Broking Pvt. Ltd.
The firm has issued preliminary fairness capital at par worth. It has additionally issued bonus shares within the ratio of fifty for 1 in September 2024, and eight for 10 in November 2024. The common value of acquisition of shares by the promoters is Rs. NIL per share.
Post-IPO, firm’s present paid-up fairness capital of Rs. 9.18 cr. will stand enhanced to Rs. 12.58 cr. Based on the higher band of the IPO pricing, the corporate is on the lookout for a market cap of Rs. 174.79 cr.
On the monetary efficiency entrance, for the final three fiscals, the corporate has posted complete earnings/ internet revenue, of Rs. 16.25 cr. / Rs. 0.33 cr. (FY23), Rs. 15.34 cr. / Rs. 2.50 cr. (FY24), Rs. 38.33 cr. / Rs. 9.50 cr. (FY25). For 8M of FY26 ended on November 30, 2025, it earned a internet revenue of Rs. 8.66 cr. on a complete earnings of Rs. 28.63 cr. While it posted larger internet on a decrease high line for FY24, the upper margins from FY25 onward not solely increase eyebrows, but additionally concern over its sustainability as it’s working in a extremely aggressive and fragmented section.
After static high and backside strains for FY24 and FY25, it marked bumper leap in high and backside strains for FY26, that not solely increase eyebrows but additionally concern over its sustainability. FY26 monetary knowledge seems to have been inflated to fetch fancy valuation for IPO. The firm is asking fancy worth based mostly on such inflated numbers.
For the final three fiscals, the corporate has reported a median EPS of Rs. 6.30, and a median RoNW of 74.69%. The difficulty is priced at a P/BV of seven.46 based mostly on its NAV of Rs. 18.64 per share as of November 30, 2025, and at 2.72 P/BV based mostly on its post-IPO NAV of Rs. 51.14 on the higher cap.
If we attribute FY26 tremendous earnings to its post-IPO totally diluted paid-up fairness capital, then the asking worth is at a P/E of 13.46, and based mostly on FY25 earnings, the P/E stands at 17.84. Though the difficulty seems totally priced, based mostly on its bumper earnings for FY26, (which is probably not sustained). On different parameters, it seems aggressively priced.
For the reported durations, the corporate has posted PAT margins of two.06% (FY23), 16.39% (FY24), 25.64% (FY25), 30.35% (8M-FY26), and RoCE margins of 10.16%, 29.92%, 48.20%, 23.24% respectively, for referred durations. Its debt-equity ratio of two.23 as of November 30, 2025, increase alarm.
All quantities in Indian Rupees crores
The firm has not declared dividend for any monetary 12 months. It will undertake a prudent dividend coverage, based mostly on its monetary efficiency and future prospects.
As per the provide doc, the corporate has proven Zenotech Lab, Shukra Pharma, as its listed friends. They are at the moment buying and selling at a P/E of NA, and 60.3 (as of May 18, 2026). However, they don’t seem to be really comparable on an apple-to-apple foundation. This evaluate seems to be an eyewash.
This is the twenty ninth mandate from Narnolia Financial within the final 4 fiscals (together with the continuing one). From the final 10 listings, 2 listed at low cost, and the remaining with premium starting from 19.23% to 90% on the date of itemizing.
BMLL is engaged within the manufacturing and buying and selling of pharma merchandise in B2B section. Most of its enterprise comes from contract manufacturing of pharma merchandise. It is working in a extremely aggressive and fragmented section. Based on its latest monetary knowledge, the difficulty seems aggressively priced. Only well-informed/money surplus/danger seekers could park average funds for medium time period.
Dilip Davda is a veteran monetary journalist related to the Indian inventory market since 1978. He has been contributing to print and digital media on capital markets, insurance coverage, and finance since 1985.
He is well known for reviewing public points and non-convertible debentures (NCDs) within the main market. Drawing on over three a long time of market expertise and shut interplay with service provider bankers, his critiques deal with detailed elementary and monetary evaluation of firms, with a particular emphasis on SME public points.
Disclaimer: The info offered herein is solely for academic and informational functions and doesn’t represent a suggestion, solicitation, or suggestion to purchase or promote any securities. Readers are suggested to seek the advice of a professional monetary advisor earlier than making any funding selections. Investments within the securities market are topic to market dangers. The creator doesn’t intend to put money into the securities mentioned.
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