**NSE/BSE Listed | Sector: Pharmaceuticals & Natural Healthcare** MPS Pharmaa Limited (formerly **Advik Laboratories Limited**) is an Indian pharmaceutical entity currently undergoing a fundamental strategic pivot. While traditionally focused on the manufacturing and export of pharmaceutical formulations, the company is transitioning toward the **Ayurvedic, Unani, and Nutraceutical** sectors. The company is listed on **BSE Limited** and the **Ahmedabad Stock Exchange (ASE)**, with **99.94%** of its equity share capital held in dematerialized form. --- ### **Strategic Pivot: Transition to Natural Healthcare & Ayush** In response to evolving market dynamics, the Board approved a major diversification strategy in **September 2025** to move beyond traditional generics into high-growth alternative medicine segments. * **Market Opportunity:** The company aims to capture a share of the **Ayurveda market**, projected to reach **USD 26.16 billion by 2032** with a **CAGR of 15.10%**. * **Operational Restructuring:** In **March 2026**, the company initiated a **workforce rationalization** program, retrenching workers at the **Sohna facility** to make way for a specialized technical team aligned with natural healthcare production. * **Expert Leadership:** To guide this transition, the company appointed **Ayurvedacharya Mr. Kamal Joshi** as **Senior Consultant**, bringing over **20 years** of expertise in Ayurvedic pharmaceuticals. * **Target Segments:** The new portfolio focuses on **Ayurvedic, Unani, Homeopathic medicines, and Nutraceuticals**, tapping into the holistic health trend valued at **USD 9.2 billion** in India as of 2023. --- ### **Core Infrastructure & Manufacturing Ecosystem** The company’s business model integrates owned assets with a flexible third-party manufacturing network. * **Primary Facility:** Owns a manufacturing plant at **138, Roz-Ka-Meo Industrial Area, Sohna, Haryana**. * **Regulatory Status:** Operations are currently pending approval from the **FDA, Panchkula**. The company has applied for the renewal/expansion of manufacturing licenses to resume full-scale activities. * **Supply Chain Strategy:** Leverages a nationwide network of **independent contract manufacturers** to supplement in-house capacity and maintain a lean operational structure. * **Asset Oversight:** Physical verification of **Property, Plant, and Equipment** is conducted every **3 years**. All self-constructed buildings are held in the company’s name, though no recent revaluations have been performed. --- ### **Therapeutic Portfolio & Market Positioning** MPS Pharmaa monitors and participates in high-value therapeutic segments, focusing on **Fixed-Dose Combinations (FDCs)** and novel delivery systems. | Therapeutic Area | Key Product / Innovation | Market Significance | | :--- | :--- | :--- | | **Oncology** | **Apatide** (Apalutamide) | First generic for metastatic prostate cancer in India. | | **Diabetes** | **Teneligliptin + Dapagliflozin** | First-in-India FDC for Type 2 Diabetes. | | **Respiratory** | **World's 1st FDC Triple Drug** | Advanced management for **COPD**. | | **Infectious Disease**| **Plazomicin** | Novel antibiotic targeting **cUTI** (15 crore potential patients). | | **Hematology** | **Orofer FCM 750** | Parenteral iron extension for anemia patients. | | **Fertility** | **LYBER Range** | Strategic entry into the specialized fertility market. | --- ### **Financial Profile & Capital Structure** The company’s financial health is characterized by high leverage and a focus on managing "High Risk" financial assets during its transition phase. * **Leverage Metrics:** The **Net Debt to Equity Ratio** has seen a sharp increase, rising to **6.90** as of March 31, 2025, compared to **3.69** in 2024 and **2.42** in 2023. * **Capital Expansion:** To fund working capital and the new business pivot, the company increased its **Authorized Capital** from **Rs. 20 crore to Rs. 45 crore** and proposed a preferential issue of **2,50,00,000 Fully Convertible Warrants** to raise **Rs. 25 crore**. * **Asset Quality:** * **Trade Receivables:** Classified as doubtful with a **25% Expected Credit Loss (ECL)** provision. * **Other Financial Assets:** **Rs. 1,53,060.21 Hundreds** are classified as **High Risk**, primarily consisting of employee advances under continuous recovery monitoring. * **Promoter Holdings:** As of March 31, 2024, the promoter group held **68,59,481 shares**, with **11,00,000 shares** (approx. 16%) remaining **pledged**. --- ### **Governance & Human Capital** The company is led by a 4-member Board with an emphasis on internal talent development. * **Leadership:** **Mr. Peeyush Kumar Aggarwal** (Managing Director) leads the firm. He is a Chartered Accountant with **35+ years** of experience in finance and project management. * **Board Composition:** Includes **1 Executive Director**, **2 Non-Executive Independent Directors** (including **1 Woman Director**), and **1 Non-Executive Director**. * **Remuneration:** Currently, **no remuneration** is being paid to any Directors, reflecting the company's focus on conserving liquidity. * **HR Strategy:** Focuses on **job rotation** and **job enlargement** to promote internal talent and multi-skilling. --- ### **Critical Risk Factors & Compliance Challenges** Investors should note significant operational and regulatory headwinds currently facing the company. * **Operational Dormancy:** The company reported **nil production activities** in recent periods due to a lack of orders and pending FDA license renewals. This resulted in a loss of **₹86.39 Lacs** for FY25. * **BSE Suspension:** Trading is currently **suspended** by the BSE due to non-payment of **Annual Listing Fees (ALF)** since **FY 2021-22**. The stock is under **Graded Surveillance Measure (GSM) Stage 3**. * **Audit Qualifications:** Statutory auditors have issued **Qualified Opinions** since **2017-18** regarding: * **Unquoted Investments (₹53.80 Lac):** Carried at cost rather than Fair Value; certificates are currently missing. * **Stalled CWIP (₹2.49 Crore):** Construction of a new factory block is suspended due to technical reasons; no impairment has been recognized. * **Sectoral Vulnerabilities:** The company faces industry-wide risks including a **70% dependency on China** for APIs, stringent **NPPA price controls**, and the rise of counterfeit medicines (estimated at 5% of the market). * **Liquidity Paucity:** Management has explicitly cited a "paucity of funds" as the primary barrier to meeting statutory obligations and exchange fees.