Influx HealthTech ( SME ) B2B CDMO For nutraceuticals, cosmetics, ayurvedic products, veterinary feed supplements

[satishwe]

Company: Influx Healthtech Ltd
Sector: Nutraceuticals Pharma/CDMO
Exchange: [NSE Emerge]

Company basic info and IPO Details
• Market Cap: ₹380 crores
• Issue Price: ₹ 96
• Listing Date: June 25, 2025
• Promoter Holding: 73% (post IPO) , FII+DII hold another 14% as per screener.

The Company raised 48 cr from ipo, majority of this is by fresh issues of shares and minor part of OFS by promoter.
The IPO is solely lead managed by Rarever Financial Advisors Pvt. Ltd., and Maashitla Securities Pvt. Ltd., is the registrar to the issue. R K Stockholding Pvt. Ltd., is the market maker. In SME listing. its important to know who is the lead manager as we can track their history of companies taken for IPO and their performance thereafter. In the prospectus Company lists Sudarshan Pharma, Quest Laboratories, as their peers.

Company is a 3rd party manufacturer of the below products.

Corporate Presentation :

Corporate Presentation | Influx Healthtech

Financial Highlights
• Revenue (Latest FY): ₹105 crores fully domestic , exports less than 1%.
• Net Profit: ₹13 crores
• ROE: 45%
• Debt-to-Equity: no debt
• Revenue Growth (3-year CAGR): 20%
Its notable the company was able to grow without having any debt and came to ipo for purely growth and not clearing any old debts.

Business Overview: Influx was founded in 2020 by Dr. Munir Chandniwala. It is CDMO company specialising in nutraceuticals, cosmetics, petcare, and homecare products catering to around 600+ customers. Marquee clients include Novus life ( which is the famous CF carbomide forte for supplements ) , Davaindia (listed Generic pharmacy having 450+ stores) etc.
The company has three manufacturing facilities in Thane, Maharashtra, each covering an area of 9,676 square feet, 13,000 square feet, and 14,000 square feet, respectively. These facilities are certified to international quality standards, including GMP (Good Manufacturing Practice), HACCP (Hazard Analysis & Critical Control Points), ISO 22000, and Halal certifications, ensuring adherence to the highest standards of safety, quality and regulatory compliance.

Following are the developments made by company to achieve better product portfolio over the previous three years:

Key Products/Services: Company manufactures around 3500+ products in nutraceuticals or nutritional supplements, cosmetics, ayurvedic/herbal formulations, veterinary feed supplements. The company offers products for various segments, they are Dietary/Nutritional 3018, Cosmetics 371, Ayurvedic/Herbal 103, Veterinary Feeds 71, and Homecare 7.
Business verticals 2025

1. Nutraceuticals: 90.74%
2. Cosmetics: 5.21%
3. Ayurvedic: 2.92%
4. Veterinary: 1.08%
5. Homecare: 0.05%

Companies offers the following products to its clients:
1. Dietary/Nutritional Supplement Product portfolio includes dietary and nutritional supplements in various forms:
• Tablets, Capsules, and Powders
• Liquid Orals and Softgels
• Lozenges, Jellies, and Gummies
• Oral Dispersible Films (ODFs)
• Effervescent Tablets and Liquid-Fill Capsules
• Candies and Gym/Sports Supplements
2. Cosmetics Diverse range of products for men and women, including:
• Skin Care and Body Care Products
• Hair Care and Beard Care Solutions
• Face Masks and Soaps
3. Ayurvedic / Herbal formulations Company produces ayurvedic and herbal formulations in the following forms:
• Tablets, Capsules, and Powders
• Liquid Orals and External Applications such as Ointments, Creams, and Lotions
4. Veterinary Feed Supplements Veterinary feed supplements are available in multiple formats, designed for animals such as dogs, cats, horses, birds, cows, chickens, pigs, buffaloes, squirrels, and goats. The product range includes:
• Tablets, Liquid Orals, and Oral Sprays
• Powders, Boluses, and Gels
• Ointments and Creams
5. HomecareCompany has variety of homecare solutions, including:
• Bathroom Cleaners
• Floor Cleansers
• Phenyle Liquids and Other Household Cleaning Products

Management Quality
• Promoter Dr. M.A. Chandniwala aged 44 yrs is the first gen Entrepreneur with an industry experience of more than 2 decds , he holds Phd in HR, MPhil, Diploma in Nutrition and Post graduate degree in Management and Business & Bachelor of Pharmacy from the University of Pune.

Investment Thesis

Expansion plans and capacity utilisation :
Current capacity utilisation is very high. Company did some debottle necking in packaging where they had issues with moving to automation and now that is complete without using any ipo proceeds they are able to go upto 200 cr top-line without using the IPO proceeds for capex. With the IPO proceeds they will be able to do 500 cr top-line.

Management confidence of 200 crore topline possibility this year supported by the debottle necking which had restricted their growth last year. Once the Planned capex is live they wont need much capex to hit 500 cr topline.
https://www.youtube.com/watch?v=hMOBbk7UJF4

From IPO proceeds company plans to invest in

1. Manufacturing of Oral Dispersible Films :Oral dispersible films (ODFs) are strips that dissolve in the mouth for direct absorption. Product in this category include vitamins and mineral supplements (e.g., vitamin C, calcium), probiotics,
   energy boosters, sleep aids, and pain relief products.
   
   

2. Expanding the Line for Snacking, Protein Bars and Protein Powder: Currently operating on a small scale, this segment will benefit from significant capital investment in automated
machinery, enabling large-scale production and greater efficiency.
These upgrades will allow to:
• Satisfy the increasing demand for high-protein, health-focused snacks.
• Broaden our customer base and market reach with larger production volumes.
• Ensure consistent quality and innovation in our offerings.

3. Introducing a Beverages Line into the Portfolio: : Currently company does not manufacture any liquid supplements, and intends to introduce tetra pack and liquid supplements in sports and clinical nutrition. This expansion will allow to offer a variety of liquid products under nutraceuticals and health supplements.

Expansion cost breakup 22 crores is fro nutraceutical division and 11.5 crores for veterinary food division.

Positives: Company is into High growth segments , nutraceutical segment in India is expected to grow at 10% cagr for next 5 yrs. Company is Backed by an young and active promoter , long runway for performance.

Concerns and risks:

1. This is a highly competitive industry with no entry barriers.
2. Recent IPO with no proper history, hence difficult to ascertain management guidance.
3. Listed in SME exchange and has lower Compliance standards.
4. Available in only lots and liquidity is low.
5. Major revenues is derived from only 3 states of Maharashtra, Gujarat, and Karnataka.
6. Business is dependent on maintaining GMP, HACCP, ISO 22000, and Halal certifications. Any suspension/non-compliance may restrict operations.
7. Heavy reliance on a limited number of manufacturing facilities in Thane posing geographical risks if any arise in future. Any disruption (fire, accident, regulatory action) would materially impact operations.
8. Dependency on CDMO clients. Loss of key customers or contracts would affect revenues.
9. Exposure to price fluctuations in raw materials (nutraceutical, herbal, and pharma inputs) which can affect margins.
10. Competition in CDMO and nutraceutical manufacturing is high; pricing pressure could erode profitability.

Valuation :
I am hopeful Company will be able to grow 20-25% for next few years and since there is no need for additional capital till they hit 500 cr topline. If they grow 25% they will hit 200 cr at Fy28 and at 15% margins 30 cr profits Company is trading at 12-13 PE for Fy28. Companies that grow at 25% usually trade at 20-30 PE.

Disclosures: Have tracking position.

Sources : DHRP, company presentations and publicly available promotes discussions on youtube.

Disclaimer : This is not a buy/Sell recommendation. SME stocks carry higher risks due to their smaller size, limited operating history, and relaxed regulatory requirements. This analysis is for educational purposes only and should not be considered as investment advice. Always conduct your own research or consult with sebi registered financial advisors before making investment decisions.

[Girish_Kolari]

2025 Alpha Ideas SME Stars - Influx Healthtech Ltd

2025 Alpha Ideas SME Stars - Influx Healthtech Ltd

[satishwe]

Some highlights from the SME meet in Mumbai.

• After the debottlenecking they are now at 50% capacity utilization roughly. ( no ipo Funds used yet). That implies 100 cr to 200 cr without any funds used.
• With ipo funds they plan to expand capacity by 2.5x on the Current capacity . 200 to 500cr.
• Current capacity is ~200 cr , so we get the final capacity at 100x2x2.5= 500 Cr.

[satishwe]

Capsule manufacturing capacity increased by 6x from 23k to 1.45 Lakh , all using internal accruals of ~35 Lakhs INR.
Funds raised form IPO are still not used.

[Prdnt_investor]

Hello folks,

Anyone planning to attend the plant visit next week Thursday? Pls share your feedback

[ramraopatil]

Did you visit the plan? Any feedback from the visit or discussion with management? Thank you

#invested

[raj1968]

I have tried to summarize the conference call discussion in my own words so please do cross check as I might have made mistakes in my understanding.

Influx Healthtech Limited H1FY26 Conference Call Notes:

General:

• Influx Healthtech is a contract development and manufacturing organization specializing in Nutraceuticals, Cosmetics, Pet care, Home care and Ayurveda products.
• We provide end-to-end solution from product development and manufacturing to regulatory support enabling our clients to focus on the core strength such as innovation, brand building and commercialization.
• Our clientele includes many multinational corporations, high growth D2C brands, niche healthcare providers across the domestic and the global market.
• We operate with three manufacturing facilities in Palaghar certified under GMP, HCCP, ISO 22,000 ISO 14,000 and we have an NSF accredited FSE 22,000 plant and US FDA registration.
• Innovation continues to be one of the biggest strengths. On an average, we launch approximately two new products every day.
• During the first half of the year, we undertook several capacity expansion and operational upgrades, all funded entirely through internal accruals, reflecting our capital efficiency and execution discipline.
  • Our tablet manufacturing expansion was done; we can now deliver 10 to 15,000 bottles per day with the total investment of 60 lakhs.
  • We have a new high-speed capsule manufacturing machine commissioned with a capacity of 1,22,000 capsule per hour which increases our capacity with the total investment of 34.48 lakhs. Multi-line production expansion has been done.
  • We have added 480 kg per day tablet production which can give 24,000 bottles per shift.
  • We have also added liquid production lines. We have added 32,000 sachet per shift production capacity with the total investment of 1.91 crores.
  • We have also strengthened our compliance and quality framework. We have received FSSC 22000 certification from NSF International Strategic Registration, USA which is valid for 3 years for the manufacturing of health, dietary and nutritional supplements.
  • We were also granted a 5-year manufacturing license from FSSAI India for newly established rented facility.

Financial highlights for H1FY26

• Revenue: 66.8 crores in H1 FY26 registering a 39% year-on-year growth.
• Segment wise:
  • Nutraceutical: 60.1Cr up by 36% Y-on-Y
  • Cosmetic 3.4 crores up by 59% Y-on-Y
  • Ayurvedic products 2.7 crores up to 112% Y-on-Y
  • Other segments (Veterinary and home care included): 0.6Cr up 20% Y-on-Y
• EBIDTA was 14.7 crores up 61% year on year with margin expanding 302 basis point to 22%.
• PAT:10 Cr up 78 year-on-year with a margin expanding 329 basis point to 15%.
• During H1 FY26 we incurred 11.7 crores in capex
• Balance sheet remains robust with cash surplus of 36.6Cr as of September 30, 2025.
• Cash flow from operations stood at 1.2 CR.

Forecast:

• Management expects to deliver 150Cr+ revenue with similar margins for FY26. H2 will be around 80-82Cr.
• They also said they will double the business by FY27 from FY25 levels with similar margins.
• They can achieve 450-500Cr in next 3 years once the new capacity comes on stream.

Product segments:

Nutraceuticals:

• Have been in Nutra for last 23 years and hence better known as a Nutra company.
• Management wants to reduce the dependence on one segment but in near term the % contribution from Nutra will remain very high.

Cosmetics:

Cosmetics was started in 2019, but it did better post covid in 22-23.

Veterinary:

• Veterinary is right how in a place where Neutra was in 2010. For next 5-10 years we are amazingly placed in this market. If you see around yourself also, you’ll see a lot of shops coming up. Pet parents nurturing their pets.
• We also expect that pet will come under FSSAI soon and then with licensing and everything will help us grow still better.
• There are very few Indian players in manufacturing. Leading players like Pedigree and Royal Canin are still importing mainly from the international market.
• We have been able to achieve the production; we have been able to achieve the formula for this, and we want to scale further. It’s going to take time, but I feel personally it will grow at better pace than Neutra.
• Dog is a bigger market. Our existing capacity is majorly occupied for dog foods. Cat food market is coming up. So, both the products are ready. We have developed foods for adult dogs and puppies as well. Different categories are there.
• Now there is a prescription market also in pet. There is a market which is there for nutrition because for support therapies which we call as a Petrceuticals.
• Expansion of 1,000 kg is all kibble food we are talking about. We have a lot of small-small clients right now with the minimum MOQs.

Margins:

• Gross margin in Neutra is 35% on an average. Introduction of new concepts and technologies will improve the margin a bit.
• Gross margins in cosmetics are much higher.
• Veterinary and Ayurveda margins are like Neutra.
• Overall EBIDTA and PAT margins is sustainable with slight uptick in future.

Working Capital:

• We are a debt free company and never had a working capital issue. We currently don’t have any plan for any borrowings because we still have not utilized our IPO funds.
• Industry wise it is 60 days. We pay also in 60 days we generally get paid out in 60 days.
• If there’s a new company, we never give credit after few transactions.
• The payment cycle looked skewed because of one company only that is Novus Life Sciences. It’s one of our largest customers and they give their raw materials to us. As per our deal, unless we utilize their ingredients, we will not pay them. The average out is happening because of only one company.

IPO Funds:

Of the IPO proceeds 4.1 Cr have been deployed towards capex 33.6 crores remain in the bank and 5.7Cr have been utilized for general corporate purposes.

Capex:

• H1F27 is our target to get everything in place. Because of rains we are one month or one and a half month behind, but we’ll cope up because we have already started to place orders and advances for the IPO machineries. We are on track for H1FY27.
• Total capex done in H1FY26 is 11.7Cr out of which 4.1Cr is from IPO funds and rest is from internal accruals. By March 2026 we will use additional 5-6Cr. And once the infrastructure of the IPO is ready then we will utilize rest of the IPO funds.
• Total capex planned is around 22-23 Cr for Nutra and 11Cr for veterinary approximately by H1FY27.
• We have expanded the capacity by 25 to 30% in H1FY26. With internal accrual both manufacturing and packaging capacity has been added. In liquid manufacturing we have doubled capacity. By Jan similar around 20-25% capacity increase will happen.
• That high-capacity pet food production line which we have set up at a cost of around 12Cr has 1,000 kg/ hour capacity. This will increase the capacity by 10x.
• We will utilize the complete land with the IPO money. However, we also have spare land available in the area which is more than 90,000 sq. ft. So, if we want to expand more, we can always do it, but in this plant also we can expand. We can upgrade it more. It’s not the highest machines we have put in this capacity.
• Some of the machineries for expansion will come by Jan. Beverage line was booked 45 days back and they have a lead time of 12 to 15 weeks. Pet food will also come in near Jan only because we have booked right now. Generally, it is 60 days’ time but with the transport and all it will take 20 25 days more for commissioning. We have given them advances only and once they are ready then they will be paid.

General:

• Top 10 Client: Approximately 30-40% of the revenue comes from top 10 clients. Top client was 18Cr approximately last year.
• Current Monthly run rate: It’s 12-12.5Cr. We will do better than 66x2 in FY26.
• Packaging bottleneck: Addressing the issue was the primary reason for growth in H1FY26. Product was earlier piling up as production capacity was there. More packaging machines are being installed now.
• Current Capacity Utilization: Neutra – 65%, Cosmetics – 60%, Pet care – 75%. Post IPO fund deployment (by H1FY27) the capacity will increase by 2.5-3X.
• Revenue Mix in Future: We are 90% is Nutra since we are doing in since last 23 years. Cosmetics started since last 3 years, Veterinary also last 2-3 years. So, it will take time to build. Cosmetics and Nutra contribution will grow but Nutra is our identity, and its contribution will remain high. Veterinary will have its boom soon. The number of queries from a lot of small players who are entering the market are very high. This is the same what happened to Nutra 10-15 years back.
• On Ayurveda Contribution: In FSSAI food safety standard act 430 herbs have been listed. Ayurveda, technically in the metros and not preferred by MDs. People are ready to write FSSAI products. Also, from Ayurveda, some contribution may be going to FSSAI or Nutra segment. For example: Ashwagandha which can be made either in ayurveda or in Neutra. People are more comfortable to make it under Neutra because it has more scope of entering a bigger market. Ayurveda has a limited market.
• Nutra and cosmetics go hand in hand because there is a new concept of cosmeceuticals now a days. Any person who is making a skin care product, it can be made under Nutra as well as under cosmetics. Ayurveda is like a typical drug which is a technical person of Ayurveda only generally makes. New D2C brand generally which are coming majorly they want to make a cosmeceutical product like for hair, skin or nails maybe. So generally, they prefer FSSAI and cosmetics, it is that way.
• Next 12–18month focus: We will be starting up a beverage line which is another segment itself. We already have placed order for the line of 10,000 bottle per hour capacity. There’s a retort facility also we have ordered so again we’ll be entering into RTDS that is ready to drink market. We want to enter nutrition space only. We don’t want to do like a Coca-Cola coke or something like that, but we want to enter where we can provide nutrition solutions to it. Also, in RTDS space we will be getting machines which are a little bit unique. I think hardly anyone has that. It’s called easy snap technology. So, it’s like a car you just press it you remove the liquid from inside and directly pour in your mouth or pour in a glass. So Nutra we want to get into beverage segment also that is our key focus also because that is one area where we can still have new set of customers. It’s a new market where we can explore a lot keeping intact our existing nutraceutical companies. Veterinary will be expanding a lot. We have our R&D also is going for a lot of like turtle foods, camel this all because we want to enter international market with the veterinary supplements also.
• R&D team: We have a team of eight qualified members with support staff. This is the FND team. There is no such expense as in the R&D because we are formulators. We are not innovating any new product; we are not bringing any new molecule. So, the set of formulas what we are developing let’s say we want to make a new bar we want to make a new pet food kibble. So, with the existing raw materials only we are trying and you know like matching this as per the customer requirements and all. So that’s why there is no at such cap R&D involved in this. Yes, the manpower which is utilized that is my expense majorly.
• Asset turn in general is 5-6 times.
• African Market:
  • Every country dealing in nutraceutical or food supplements are evolving. We are lucky that India has already been working since last 10 years and FSSAI is doing very well right now. So, there is a legal framework which is very good. Counties like Nigeria or Tanzania or Kenya (African countries) which are a little bit behind India are also trying to come up with the regulatory framework. That’s why these approvals are required. It’s not compulsory or mandatory but you will have an edge if you have a Tanzanian approval or a Nigerian approval. So, because of our registration everything goes very smooth there. African market is also growing. The orders have been amazing and we also grew. Our export also from last year has increased a lot in these areas.
  • We don’t do direct export. We do through merchant exporters.
  • In exhibitions when we meet people from this geographical area, we find them very positive, and they say that the market is growing exponentially.
• Tanzania:
  • We are already doing through merchant exporters in Tanzania.
  • They have started a program where they want the international companies who are exporting to them to take licenses. It’s not 100% mandatory but keeping in mind the future aspects it will be nice that if you take an approval.
  • It’s a physical audit and the team will come and inspect the plant. It’s scheduled on 11th December.
  • Exports are somewhere around 50 lakhs to 1Cr only right now. But it can improve over the years. We have orders in hand with our current companies also.
  • In Tanzania once our sites get registered there it becomes very easy for the marketer to market there. It’s not that it’s illegal to market but with their approval process, the timelines, the fees, everything gets reduced. So, the second the marketer who will do they have to pay 50% of fees than the initial. So, this all helps them in creating their segment there.
  • And in long run all the countries will have a good framework. Surprisingly US doesn’t have a framework a proper framework than the Nigeria or Tanzania. So, they also improving that way.
• Export to other countries: We are NAFDAC approved. We have Nigerian approved plant. We are first in Maharashtra to do it in Neutra space. We are NSF certified. So that means it opens for us European and US market. We are only FSC 22,000 NSF certified in Maharashtra. Our biggest client Novus have been able to export to US because of NSF certification. They have started their exports to US which is going to boom. They are registering their products there right now. They may good orders in a couple of months’ time. Then you will see a lot of production happening for the US market because we have the certification.
• We as a company have thought to improve our presence globally. Next year we’ll take three-four approvals, and we’ll try to get there. Our mission as a company is expand our presence in multiple geographical areas.
• Building a 500Cr company: Ultimately factories are on auto mode only. We have added new assistant managers in production. We have started building the layers and it will be done as soon as we get the right people. We have started on the lower and the middle level also. Our expense have also increased as we have been hiring.
• Carbamide Forte: They are our largest client.
  • 70-80% of their business is with us.
  • For them we have installed the capsule capacity.
  • They have a vision to expand in US markets. We have NSF certificate which is aligned to their vision.
  • We had a meeting with them recently to have dedicated lines for them.
• Market opportunities: The market is amazingly poised**.** We are building the new plant at BRCGS level. I was earlier talking is this is NSF right. So that will be one step ahead of this plant also. We will have a better chance to pitch bigger customers/multinationals with the new plant. The thought is to make a very good plant that will be accepted globally. The old plant remains for our customers who are old enough and have medium scale and the new plant will definitely target larger ones because we will be having all automized machineries. There are a lot of opportunities ahead. Our clients are doing well. They are expanding and we are forced to expand.
• The beverage line will come in H1FY27. We can do 10,000 bottles per hour. I have a very good feeling for RTD, and we have already started the pilot plant since last 6 months. We have been exporting to Caribbean islands this carbonation drinks and all which are Ashwagandha nutritional waste. So already the work has been done. The formulas are stable. We are confident to scale it up.
• The business is not cyclical.

Regards
Raj
Disc: Invested

[satishwe]

[GauravT]

Why would Rohan Gupta enter this scrip?

Disc: no position

[satishwe]

He has invested in many stocks, I would not read much about this as his stake is very small to make any strategic impact.

[y21]

He invests and flips in a lot of SME scrips.
He was on the call (you can see via transcript) and seemed interested in the vision of the co.
Also mentioned somethings about Novus (Carbamide Forte) having 200cr run rate currently from 50cr in FY24.

My two Cents -

Overall Co looking strong for 1-2 years. Can be a 450-500cr topline and 70-80cr PAT 2 years down the line.

Much of my major qty is just after IPO so I dont see a lot of Margin of safety from here but good stocks are always a tad bit expensive.
If executed well, can maintain 25+ multiple down the line as well.
H2FY27 should give a good idea of how capex is scaling up and H1FY28 should be the first half will capex fully scaled up (if it does).