Indrayani Biotech – A growth stock to watch out for

Indrayani Biotech (BSE: 526445) is a growth stock that is likely to show strong double digit growth over the next few years.

In its Annual Report released the last week, the company has projected a consolidated revenue of Rs 150 crore for FY23.

In comparison, the revenue for FY22 was Rs 58 crore. A large part of this growth is likely to come from two areas:  organic growth of the A-Diet business and contribution from the newly acquired milk-based value added products business: Dindigul Farm Products (DFPPL).  The company also appears to be confident of growth from its other businesses: Healthcare, Engineering, Bio fertilizer and agri solutions business.

Besides DFPPL, the company has other inorganic plans lined up. It wants to acquire the sister company of DFPPL – AR Dairy Pvt Ltd. In the Healthcare business as well, it has acquisition plans. This business is housed in the subsidiary IBL Healthcare Limited.  The company has been declared a successful resolution applicant for takeover of Vaasan Medical Center (India) Pvt Ltd, a renowned pharma retailer, by the committee of creditors of that company and is awaiting approval from hon’ble NCLT, Chennai. This could happen via IBL Healthcare. Vaasan Medical is part of the Vaasan group that also had the Vaasan Eyecare business.

The Q1 FY23 result declared a few weeks ago showed strong growth as well. Some highlights:

  • Consolidated results show net operating revenue of INR 260 m in Q1 FY23,  up 79% from INR 143.3m in Q1 FY22. EBITDA grew to INR 34.2m, up 222% y-o-y
  • The consolidated results were boosted by the acquisition of 51% stake in Dindigul Farm Products (DFP), a value-added milk product business.
  • Standalone results show net operating revenue of INR 160 m in Q1 FY23,  up 12% from INR 142 m in Q1 FY22. EBITDA grew to INR 17.5m, up 48% from INR 11.8m in Q1 FY22

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