Equity Research Report: Viyash Scientific Ltd. (Formerly SeQuent Scientific)
Date: February 7, 2026
Market Price (CMP): ₹201.55
Market Cap: ~₹11,800 Cr
Sector: Animal Healthcare & Pharma (API + Formulations)
⚠️ Important Name & Merger Update
Ye wahi company hai jo pehle SeQuent Scientific ke naam se jaani jaati thi. Recently (Late 2024/2025), iska merger Viyash Life Sciences ke saath complete hua hai aur Jan 2026 me iska naam change hokar Viyash Scientific ho gaya hai (official name change process ongoing/completed).
Is report me hum “Combined Entity” (SeQuent + Viyash) ka analysis karenge.
1️⃣ Business Model & Work
Company Overview:
Viyash Scientific ab India ki sabse badi aur duniya ki leading Integrated Animal Health companies me se ek hai. Ye company “Insano” ki dawai nahi, balki “Janwaron” (Livestock & Pets) ki dawai banati hai.
Revenue Sources (Combined Entity):
- Animal Health APIs (~45-50%): Active ingredients jo dusri pharma companies khareedti hain (World’s largest producer of Albendazole).
- Formulations (~40%): Final medicines (Tablets, Injections) for Cattle, Poultry, and Pets.
- CDMO (Contract Manufacturing): Global clients ke liye research aur manufacturing karna.
Competitive Advantage (The “Moat”):
- Backward Integration: Viyash ke aane se pehle SeQuent sirf formulations me strong tha. Viyash ke paas 10+ USFDA plants aur strong API capabilities thin. Ab ye raw material se lekar final product tak khud banate hain (High Margin).
- Carlyle Backing: Is company ka main promoter global PE giant Carlyle Group hai, jo aggressive growth drive kar raha hai.
2️⃣ Industry & Sector Analysis
Status: Niche & High Growth
Animal Healthcare sector Human Pharma se alag chalta hai. Yahan price erosion (daam girna) kam hota hai aur customers (farmers/pet owners) brand loyal hote hain.
Growth Drivers:
- Pet Humanization: India aur West me log pets (kutta/billi) ko family member ki tarah treat kar rahe hain, jisse pet healthcare spend badh raha hai.
- Livestock Demand: Milk aur Meat consumption badhne se cattle/poultry health par focus badha hai.
- China + 1: Global animal health companies supply chain diversify kar rahi hain, jiska fayda Indian API players ko mil raha hai.
Major Competitors:
Zoetis (Global), Zydus Animal Health (Domestic), Hester Biosciences.
3️⃣ Latest Financial Performance (Verified Data)
Data Source: Consolidated Q3 FY26 Results (Dec 2025)
Note: Numbers reflect the merged entity performance.
| Metric | Q3 FY25 (Pre-Merger Base) | Q3 FY26 (Latest – Merged) | YoY Trend |
| Revenue | ₹426 Cr | ₹872 Cr | +105% (Due to Merger) |
| Operating Profit (EBITDA) | ₹56 Cr | ₹148 Cr | +164% |
| EBITDA Margin | 13% | 17% | Expanded |
| Net Profit (PAT) | ₹20 Cr | ₹49 Cr | +145% |
| EPS (₹) | 0.8 | ~1.0 | – |
Analysis:
- Scale Change: Revenue double ho gaya hai kyunki ab Viyash ka business bhi jud gaya hai.
- Margin Expansion: EBITDA Margin 13% se badhkar 17% ho gaya hai. Ye “Synergy” ka sabse bada saboot hai – Viyash ke high-margin API business ne overall profitability badha di hai.
- Debt Profile: Net Debt/EBITDA ~0.7x hai, jo company ko further acquisitions ke liye room deta hai.
4️⃣ Management & Shareholding (Latest – Jan 2026)
Shareholding Pattern:
| Category | Holding (%) | Trend |
| Promoters (Carlyle + Viyash Founders) | 61.43% | 🔼 Increased (High Confidence) |
| FIIs | 3.16% | 🔻 Slight Dip due to merger churn |
| DIIs (Mutual Funds) | 7.35% | 🔼 Watching closely |
| Public | 28.06% | – |
- Key People: Dr. Hari Babu (Founder of Viyash) ab driving seat par hain. Unka track record (ex-Mylan COO) execution me bahut strong maana jaata hai. Carlyle Group ka control ensure karta hai ki corporate governance global standards ka ho.
5️⃣ Valuation (Latest Market Data)
Current Valuation:
- Market Cap: ~₹11,800 Cr
- PE Ratio (TTM): ~60x – 70x (Adjusted for merged earnings). Note: Screener might show 200x due to old data lag.
- EV/EBITDA: ~18x – 20x
Peer Comparison:
- Viyash Scientific: ~18x EV/EBITDA (Reasonable for a market leader).
- Hester Biosciences: ~25x EV/EBITDA.
- Zoetis (Global): ~30x PE.
Interpretation:
Merger ke baad valuation thoda complex hai, lekin Forward PE (FY27) ke hisab se ye stock ~35-40x par trade kar raha hai. Animal Health leaders ko usually premium valuation milta hai (scarcity premium).
6️⃣ Future Growth Triggers (3–5 Years)
- US Market Expansion:Viyash ke paas USFDA approved plants hain. Ab ye SeQuent ke products ko US market me aggressive tarike se launch karenge.
- Margin Expansion to 20%:Management ka target hai ki operating margins ko 20%+ le jaaya jaye (Currently 17%). Cost cutting aur backward integration se ye possible lag raha hai.
- New Molecules (R&D):Company naye “Complex APIs” par kaam kar rahi hai jahan competition kam hai.
7️⃣ Present Situation (Current Outlook)
- Current Phase: “Transition & Re-rating”.Stock merger news ke baad volatility me tha, lekin ab numbers (Q3 Results) prove kar rahe hain ki merger successful raha.
- Recent News: Jan 2026 me name change aur management restructuring complete hui hai. Market ab “Delivery” dekhna chahta hai.
- Outlook:
- Short Term: Range bound (₹190 – ₹220).
- Long Term: Bullish due to unique business model.
8️⃣ Risk & Red Flags
- Currency Fluctuation:Revenue ka bada hissa Europe/Turkey/Emerging Markets se aata hai. Currency volatility (Euro/Lira) profits ko kha sakti hai.
- Regulatory Risk:USFDA inspections. Viyash ke plants ab critical hain, wahan koi bhi negative observation stock ko gira sakti hai.
- Integration Hiccoughs:Do badi companies ka culture milne me time lagta hai. Agar top management me conflict hua to growth slow ho sakti hai.
9️⃣ Final Verdict
- Summary: Viyash Scientific (SeQuent) ab ek complete “Turnaround Story” ban chuki hai. Pehle ye company struggle kar rahi thi, lekin Viyash ke assets aur Dr. Hari Babu ki leadership ne ise ek strong MNC bana diya hai.
- Long-term Investors: BUY. Animal Health ek defensive sector hai. Agar aap 3-4 saal hold kar sakte hain, to ye portfolio me “Steady Compounder” ban sakta hai.
- Conservative Investors: Hold. Merger ka poora asar aane me abhi 2 quarters aur lagenge.
- Aggressive Investors: Accumulate in dips.
- Target Range: ₹280 – ₹300 (12-18 Months).
Actionable Step:
Current price (₹201) par choti quantity le sakte hain. Agar stock market correction me ₹180-185 tak aaye, to aggressive buying karein.
Disclaimer: Ye article sirf educational purpose ke liye hai. Kisi bhi nivesh se pehle apne Financial Advisor se salah zarur lein.