Parabolic Drugs Limited– IPO Note - ANS Pvt. Ltd.

POSITIVES AND CONCERNS ABOUT THE COMPANYPositivesRobust GrowthThe company’s revenues have grown at a CAGR of more than 65% over last 4 years. Also, theproposed future expansion plans will result in continuous growth in top line of the company.High Asset TurnoverThe company asset turn over ratio is highest among its peers which allow PDL to manage itscapital efficiently.Exclusive ContractsThe company made a contract with Ranbaxy for two of its molecules, to provide bulk drugs.Such contracts with larger Pharma players could boost PDL’s earning prospects in coming years.Private Equity Firms partly exitThe two PE firms Alden Global and BTS India Private Equity are only taking a partial exit. Boththe PE firms remain invested which may signal possibility of generating higher returns in thenear future.