VijayPD Ceutical IPO

VijayPD Ceutical claims to benefit from a strategic location in the western Mumbai suburban area, which provides easy access to pharmaceutical manufacturers, wholesalers, pharmacies, clinics, and nursing homes. This geographical advantage is said to enable quick distribution across the city and surrounding areas, supporting timely deliveries and meeting market demands. The company also claims to leverage integrated systems and technologies to offer data intelligence, end-to-end distribution solutions, and marketing support to healthcare providers.

The company claims to distribute a wide range of products, including generic and branded medications, acute therapy drugs, wellness products, OTC items, baby care products, nutraceuticals, and specialised medicines for chronic, psychiatric, immunology, ophthalmic, cardiology, and endocrinology treatments. Its technology-enabled inventory management and order placement systems are claimed to enhance service efficiency, while economies of scale, competitive pricing, and logistics capabilities support its operations.

VijayPD Ceutical claims to maintain an efficient supply chain that reduces lead times, minimises inventory costs, and improves responsiveness to market changes.

The company holds regulatory certifications from the Food and Drug Administration (FDA), the Food Safety and Standards Authority of India (FSSAI), and the Brihanmumbai Municipal Corporation (BMC).

The company has witnessed a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 48.77 crore in FY23 to Rs 54.33 crore in FY24 and Rs 106.81 crore in FY25. PAT increased from Rs 0.18 crore in FY23 to Rs 1.65 crore in FY24 and Rs 4.79 crore in FY25.

VijayPD Ceutical is exposed to risks related to the distribution of expired, unsafe, defective, ineffective, or counterfeit products, as well as product spoilage, breakage, or damage during transportation or storage. Failure to comply with the prescribed quality standards may result in product returns, refund claims, or loss of business. Additionally, the company could face product liability claims, which may negatively impact its profit margins, cash flows, and reputation.

The company derives 100 percent of its revenue from one single location - Maharashtra. Furthermore, it sources a substantial portion of its raw materials from suppliers based in this state. Maharashtra accounted for Rs 105.95 crore (99.68 percent) of the company’s total purchases in FY25, Rs 51.93 crore (99.59 percent) in FY24, and Rs 46.34 crore (99.60 percent) in FY23. Any adverse economic, political, or regulatory developments in the region could negatively affect the company’s results of operations, cash flows, and financial condition.

VijayPD Ceutical derives a significant portion of its revenue from the pharmaceutical industry. Any downturn in the pharmaceutical sector, loss of key customers, or the emergence of novel products that substitute existing offerings could adversely impact the company’s sales and profitability. Additionally, if competitors improve their distribution efficiency or sourcing processes and offer similar or higher-quality products at lower prices, the company may be unable to respond effectively, which could negatively affect its business and results of operations.

The company reported negative cash flow from operating activities amounting to Rs 7.89 crore in FY25. This was primarily due to increased inventories to support higher operations, higher trade receivables from extended customer credit, advance payments to suppliers and salary advances, and increased income tax payments. Additionally, negative cash flow from investing activities amounted to Rs 0.55 crore in FY25 and Rs 0.09 crore in FY23. These were mainly due to purchases of property, plant, and equipment, partially offset by loan realisations and rental income. The company also reported negative cash flow from financing activities amounting to Rs 2.38 crore in FY25, Rs 2.86 crore in FY24, and Rs 0.18 crore in FY23. This was mainly due to repayment of long-term borrowings and interest payments, partially offset by short-term borrowings. Sustained negative cash flows could affect the company’s ability to fund working capital requirements, capital expenditures, and other corporate needs.

All three warehouses of the company are concentrated at one single location - Mumbai. Any disruption in this region could hurt the company’s financial condition and results of operations.

The company, its director, and promoters are involved in certain ongoing tax proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.

VijayPD Ceutical relies heavily on third-party transportation providers for the delivery of its products to pharmacies, nursing homes, and clinics. The company does not have long-term agreements with most service providers, and the arrangements are generally on a short-term or transactional basis. Any disruption in the availability or terms of such services could adversely affect business operations.

The company is exposed to credit risk arising from trade receivables, as there is no assurance that all outstanding amounts will be collected on time or in full. As of FY25, it had trade receivables of Rs 23.80 crore, a sharp increase from Rs 11.10 crore in FY24 and Rs 8.74 crore in FY23. Furthermore, in FY23, the company recorded bad debts of Rs 0.28 crore due to the rejection of claims for expired goods by vendors, highlighting the risk of defaults and receivable-related losses.

As of FY25, the company had financial indebtedness of Rs 21.77 crore. Any failure to service or repay these loans can hurt the company’s operations and financial position.