Senores Pharma- Hidden in plain sight

[Chandan_Sharma]

I would like to start this with disclaimers first.

** Not SEBI registered, DYOR

**Invested, biased and dumb

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Senores came up with another steller quarter where most of the stocks are struggling, with 70% revenue growth and 84% profit growth.

EOD 29.01.202

• IPOed in Dec 2024, the business spooked interest in me after the Q1FY26 result season, when I was going thorough investor presentations and con-calls where they came out with 50% revenue and 100% profit growth guidance.

**Q1FY26 con-call

• Another trigger came in on 15 Dec with the acquisition of “Apnar Pharma” at a enterprise value of Rs. 91 cr which came up with “an USFDA facility in Gujarat (commissioned in FY22), one plant in USA, has 5 ANDAs”- can get 100 cr revenue in FY27 with 30% EBITDA, 250 cr in FY28.

  

Business model:

SPL is a global research-driven pharmaceutical company that develops and manufactures pharmaceutical products for the Regulated Markets of the US, Canada, and the United Kingdom across various therapeutic areas and dosage forms, with a presence in Emerging Markets. The company develops and manufactures specialty, underpenetrated, and complex pharmaceutical products. It also manufactures critical care injectables and APIs. -Screener.in

**Here is a visual to help you understand the business model a little better.

• The management is on track with the guidance and will probably overshoot it if we take an estimate.

  

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  Q3 Investor presentation & concall snippet-

• The company has 46 approved ANDAs covering 137 strengths, with over 100 strengths yet to be launched and 22 additional ANDAs under development with 50+ strengths

• Revenue breakdown as of Q3

• Facilities before Apnar

• Planning to backward integrate in API

• The company finally became cash flow positive with operating cash flow of Rs. 51 cr.

• 120-150 cr revenue possible from Apnar in FY27.

• In regulated market, own ANDA products contributes to 55% of the revenue which has 4-6% more margin than CDMO/CMO, which will set to go to 60% in FY27.

• The 40% EBITDA margin is sustainable and even can improve by 1%.

• The managemet will provide FY27 guidance after Q4.

  Key management quotes:

  “it’s always better as a management to remain a bit conservative”

  “to expect that 100% to, you know, it’s a little asking too much, but I would say a very decent top line growth and a slightly better bottom line growth is what we are targeting”

  Beyond Q3 & closing thoughts:

  • The management is walking the talk staring from the IPO although it’s only been a year since the IPO.

  • Acquisition of Apnar pharma and Zoraya platform seems really strategic and well planned and can be a great revenue booster.

  • The management has already warned about the pace of growth coming down due to base effect which shall be confirmed after Q4 results and conference call.

  

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• The management has issued warrents worth Rs. 92 crores by preferential issue at a price of Rs. 812 to for product acquistion and working capital requirement

  

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  ** Thank you. And feedbacks are welcome

[sougataG]

The business looks interesting. What do they make? What are their therapeutics/ specialties? If they are into API, what kind of API? Pharma is a huge and complex business. I think the story needs to be fleshed out more. Like what is the market size of their API’s, molecules etc? What is the price/kg? Competition in the market place? How big is the China factor? etc.

[Sanjay_kumar]

A detailed analysis exist about the company at https://www.drvijaymalik.com/pharmaceutical-companies/

[mzambare]

Here’s my analysis of the company based on the available reports.

Disclaimers: Most of the analysis is done with the help of AI.

I don’t work in the finance industry, so I don’t understand many technical terms. I do work in the medical industry. Eventually going ahead, I’ll further evaluate the company based on their specific products, what they sell, and for what illness they are used to get a better understanding of where we are headed.

New to the domain of technical analysis as well, I never focused on that, but as advised by Dr. Hitesh Patel and his thread, I follow these 2 books now for my company analysis.

I’ve added snippets from available reports wherever possible.

I. Fundamental Analysis (Pat Dorsey Framework)

1. Economic Moat Identification

• Intangible Assets (Regulatory Moat): In the healthcare sector, the primary moat is derived from patent protection and regulatory approvals. Senores possesses 46 approved ANDAs (Abbreviated New Drug Applications) with 137 strengths. These ANDAs serve as legal barriers to entry for competitors in the generic space. (snippet from Q3FY26)

• Switching Costs (Channel Moat): Management notes a moat in their ability to serve “government channels” in addition to retail channels in the US. In the business services and health care sectors, being integrated into critical supply chains creates high switching costs. (Snippet from Q1FY26)

  

• Asset Stickiness (Branded Generics): The Branded Generics business grew over six-fold year-on-year in Q3 FY26 . Branded products create a “perceived product differentiation,” which allows for higher margins than commodity generics.(From Q3FY26)

  

2.Profitability and Financial Health

• • Operating Leverage: In Q3 FY26, total income grew by 64% (Rs. 175 Cr vs Rs. 107 Cr), while Profit After Tax (PAT) grew by 105% (Rs. 34 Cr vs Rs. 16.42 Cr).

  

• Margins: The consolidated EBITDA margin stood at 30.8% for Q3 FY26 . This is a significant jump in the Emerging Markets segment, where EBITDA margins rose from ~1% in Q3 FY25 to ~13% in Q3 FY26.

• Capital Allocation: The company utilized IPO proceeds to repay Rs. 73.10 Cr of borrowings, improving the debt-to-equity profile. And has made significant investments in its own subsidiaries. As of December 2025, the firm retains Rs. 137.88 Cr in unutilized IPO funds for future inorganic growth and strategic initiatives.

  

II. Momentum Analysis (William O’Neil CAN SLIM Model)

C: Current Quarterly Earnings

• Q3 FY26 EPS: Rs. 7.29, up from Rs. 5.04 in Q3 FY25 (+44.6%).

• Q2 FY26 EPS: Rs. 6.54, up from Rs. 3.92 in Q2 FY25 (+66.8%).

A: Annual Earnings Increases

• 9M FY26 EPS: Rs. 18.43 vs Rs. 12.14 in 9M FY25 (+51.8%).

• FY25 EPS: Rs. 16.12, up from Rs. 12.21 in FY24 (+32%).

Data limited as only annual report of FY25 available.

N: New Products, Management, Highs

• New Management: Appointment of Manohar Lalge as President-R&D (Nov 2025) and Jignesh Desai as President-Finance (July 2025).

• New Products: Launched two new ANDAs in Q3 FY26 and eight new products in Q2 FY26.

• New Highs: The stock reached a high of 882.55 and is currently trading at 787 (30th Jan)

S: Supply and Demand The company has 46.05 million shares outstanding. This is a relatively small capitalization compared to industry giants, which often allows for faster price movement upon institutional demand.

From techincal standpoint, the stock is currently in consolidation phase but it is making longer wicks on charts and less tight closes. However price is maintaining above 200 DMA. and despite the downtrend in general market senores price holds, still price increase on siginificant volume is yet to come.

Thank you! This is my 1st company analysis I am posting; there’s a lot to learn. Feedback and suggestions are most welcome.

[james_kerala]

You must be referring to https://www.drvijaymalik.com/senores/

@Chandan_Sharma Thank you for starting the thread.

Disc: Small Tracking Position by looking at recent results and recent concall summaries. Detailed study yet to happen.

[Aman_Jain3]

We have to look at the price of equity warrants issued by the company to promoter to get a better idea.