Renata valuation report: fair value BDT 146–350 (Oct 2026)

Thesis: Renata is worth BDT 146–350 (base 234); the debt cure is done, but returns stay below the cost of equity

Renata PLC (DSE: RENATA) is one of Bangladesh's five largest drug makers and the leader in animal health. It makes branded generics for doctors and pharmacies at home, veterinary medicines, vaccines and feed premixes for farmers, contract-manufactured products, and a growing range of generics for regulated export markets such as the UK, the EU, Australia and the US [2 p.28]. In FY2024–25 it paid for a capex boom: profit after tax fell 38.6% to BDT 2.22bn as net finance cost jumped from BDT 0.70bn to BDT 1.71bn [2 p.107]. The audited FY2026 statements show the reversal: revenue BDT 46.2bn (+7.7%), gross profit +17.9%, net finance cost down to BDT 1.31bn and profit BDT 3.64bn, EPS BDT 31.76 [1 p.9]. A BDT 3.25bn convertible preference issue and a cheap IFC dollar loan let Renata repay about 12% bank debt [2 p.48] [1 p.11].

• Recovery is in the audited numbers. Gross margin rose from 41.0% to 44.8%, operating profit from BDT 4.19bn to BDT 6.04bn, and borrowings fell from BDT 18.9bn to BDT 14.4bn [1 p.8] [1 p.9].
• Growth slows from here. Domestic human pharma grew 11.6% in FY2026, animal health −0.4% and contract manufacturing −11.9% [1 p.48]. We forecast revenue growth of 10.0% a year and EPS of BDT 35.69 / 39.79 / 44.32 for FY2027–29F [13].
• Returns are the problem. Operating margin was 21–23% in FY2021–22 and 9.8–14.1% since [2 p.41]; FY2026 was 13.1%. ROE was 10.0% in FY2026 and we forecast 10.4%–11.1%, below a 16.5% cost of equity. No pharma price increase has been allowed since 2022 [2 p.39].
• Dilution is coming. The preference shares convert at BDT 475 from Oct-2028, adding 6.84m shares (6.0%) and carrying a 15% non-cumulative dividend until then [6]; none was proposed for FY2026 [1 p.41]. We value per diluted share and deduct BDT 11 a share for future preference dividends.
• Valuation. DCF BDT 246 (WACC 14.6%, g 6.0%); large-pharma peer trailing P/E of 7.5x on FY2026 diluted EPS BDT 214; peer trailing EV/EBITDA of 4.96x on FY2026 EBITDA BDT 217. Blended (60/20/20) base BDT 234, against a price of BDT 425.9 [13] [8].

Renata is 51% owned by the Sajida Foundation; Oncology and Agro were merged in, leaving two small export subsidiaries

The Sajida Foundation, a non-profit, holds 51.09% of Renata; Business Research International Corp holds 19.19%, ICB 7.13% and Sadharan Bima 4.37% [2 p.133]. The MD and CEO, Syed S. Kaiser Kabir, and the Foundation together bought BDT 1.4bn of the 2025 convertible preference issue [3 p.20]. Alpha Credit Rating rates the company AAA / ST-1 with a stable outlook [6]. ACNABIN audited the FY2026 statements (S. F. Ahmed & Co. audited FY2025) [1 p.9] [2 p.107].

Subsidiaries and the materiality test. Renata Oncology and Renata Agro are not subsidiaries today. Renata Oncology was amalgamated into Renata PLC from 1-Jul-2019 and Renata Agro Industries (with Purnava) from 1-Jul-2021 under High Court schemes [1 p.41]; oncology now sits inside pharmaceutical products and agro inside the BDT 0.30bn agro-based segment [1 p.48]. The only subsidiaries are Renata (UK) Ltd and Renata Pharmaceuticals (Ireland) Ltd, export marketing arms carried at BDT 190m [2 p.99]. In FY2026 they sold BDT 454m between them (1.0% of group revenue) [1 p.48]; in FY2025 they were 0.9% of revenue and 9.8% of profit [2 p.39]. They are below the 10% test on revenue and assets, at the line on profit, unlisted and not a separate risk, so we value the group on consolidated numbers. Sum of the parts does not apply: no part is ≥15% of value with economics different from the group.

Plants. Mirpur (potent products, UK MHRA and EU-GMP since Jul-2025, the first EU-GMP potent facility in Bangladesh), Rajendrapur (general, EU-GMP via Hungary, US FDA, Turkey approval Jan-2026), Kashor (general oral solid and sterile, herbal, nutrition) and the Hobirbari site at Bhaluka where the PPF3 plant, power plant and central warehouse were still in capital work-in-progress at Jun-25 [2 p.45] [2 p.47] [6]. The company employed 8,366 permanent and 4,866 casual staff at Jun-25 [2 p.40].

FY2026: operating profit rose 45% to BDT 6.04bn on flat cost of sales; interest fell by BDT 0.32bn

The audited FY2026 statements (year to 30-Jun-2026, signed 17-Oct-2026) replace the headline figures in the DSE notice [1 p.9] [6]. Revenue rose 7.7% to BDT 46.20bn while cost of sales rose only 0.7%, to BDT 25.49bn: raw materials consumed fell to BDT 16.97bn from 17.33bn even as volumes grew, and factory overhead rose 2.5% [1 p.48]. Gross margin therefore jumped 3.9 points to 44.8%. The company credits better procurement and SKU pruning [3 p.17]; the taka was steadier in FY2026 than in FY2025, when it fell 8.2% on Renata's LC settlements [2 p.40].

Selling, marketing and distribution rose 9.8% to BDT 12.29bn (26.6% of revenue) as field-force salaries rose 12.8% to BDT 4.49bn; administration rose 7.9% [1 p.50] [1 p.9]. Operating profit rose 44.8% to BDT 6.04bn (13.1% margin). Below that line: a BDT 215m provision for obsolete plant turned other income into a BDT 116m expense [1 p.50]; interest expense fell to BDT 1.43bn from 1.75bn even though less interest was capitalised (BDT 210m vs 438m) [1 p.50]; FX losses were only BDT 2.7m. Tax was BDT 760m, a 17.3% effective rate against the 20% applicable rate [1 p.51]; The Business Standard reported a retrospective tax saving booked in Q4 [7].

Cash flow. Operating cash flow was BDT 5.72bn (NOCF per share 49.88) after BDT 1.31bn of interest and BDT 1.03bn of tax [1 p.11]. Capex and dossier costs took BDT 3.54bn; borrowings were cut by BDT 4.59bn net, funded by the BDT 3.25bn preference issue and free cash flow; ordinary dividends paid were BDT 636m and cash ended at BDT 1.97bn [1 p.11]. Inventory was BDT 13.29bn (190 days of cost of sales) and receivables BDT 4.49bn (35 days), both up from Jun-25 [1 p.8].

Equity bridge. Ordinary equity rose from BDT 35.04bn to BDT 37.76bn (NAV per share 329.19): profit 3.64bn, less the FY2025 dividend 0.63bn, less other comprehensive income of −0.28bn (an actuarial loss of BDT 252m on the gratuity plan, −6.5m hedge reserve, −20.3m translation) and the 14.8m preference issue cost [1 p.8] [1 p.9] [1 p.11]. No preference dividend was proposed for FY2026: note 17.5 lists only the BDT 5.50 ordinary dividend [1 p.41]. This explains the BDT 293m gap in our earlier, pre-statement calibration; nothing is left unexplained.

Human pharma is 71% of sales and grew 11.6% in FY2026; animal health, the old growth engine, stalled

Human pharma (domestic). Bangladesh's pharmaceutical market was US$3.37bn on IQVIA data for the year to June 2025, up 12.4% [12 p.21]. Renata's share was 5.8% (MAT Q2-2025) and it ranked third by prescriptions, up two places in two years, with 680 products in 290 brands; the top 30 brands make 75.7% of pharma sales [2 p.28]. Growth in FY2025 was 13.2%, almost all volume: 11.8 points of the group's 13.7% growth was volume, and pharma prices were not raised [2 p.39]. In FY2026 pharmaceutical products rose to BDT 35.31bn; less exports, domestic human pharma was BDT 33.02bn, +11.6% [1 p.48]. We model 11.0%, 10.5% and 10.0% for FY2027–29F: market growth of about 10–12% with a small share gain, but no price help.

Competition and share. The domestic market is crowded: more than 250 manufacturers, led by Square, Incepta, Beximco, Opsonin and Renata (IDLC data quoted in our sector spec; labelled). Renata's 13.3% pharma growth in FY2025 was the highest of the top five, and its prescription rank rose to third through targeted coverage of the top 10–25% of prescribers, who write about half to 70% of prescriptions [2 p.28]. The cost shows: selling, marketing and distribution was 25.0% of revenue in FY2024, 26.1% in FY2025 and 26.6% in FY2026 [1 p.9]. Renata is buying share with selling spend while prices are frozen; every point of S&D is about BDT 3.4 of FY2027F EPS. We hold S&D at 26.6% and growth near the market, so share gains add revenue but not margin.

What a 5.8% share means in money. On the IQVIA market of US$3.37bn [12 p.21], 5.8% is about US$195m at retail value. Renata's domestic pharma revenue of BDT 33.02bn is net of VAT (BDT 6.04bn on pharmaceuticals in FY2026 [1 p.48]) and trade margins, so the two figures are not directly comparable; we forecast from the company's own segment growth, not IQVIA value.

Animal health. Renata leads Bangladesh's animal-health market (about BDT 30bn, 70% supplied by local firms, on IDLC data quoted in our sector spec; labelled, not re-verified) with antibiotics, vaccines, premixes and imported feed additives for poultry, dairy and fish farmers. FY2025 sales rose 20.4% to BDT 7.85bn on price rises in vaccines, premix and imports and 16 launches [2 p.29] [2 p.144]. FY2026 sales were BDT 7.82bn, −0.4% [1 p.48]: the FY2025 price rises met weak farm demand, and Renata cut loss-making veterinary SKUs (boluses, powders, imported feed additives) [2 p.45]. We model 6.0% in FY2027F and 8.0% after; the bear case has 2–4%.

Contract manufacturing (mostly government procurement) fell 1.6% in FY2025 and 11.9% in FY2026 to BDT 2.31bn as the state cut purchases [2 p.29] [1 p.48]; we hold it flat in FY2027F. Agro and consumer are 0.7% of sales.

DGDA pricing. The Directorate General of Drug Administration sets prices for the essential-drug list and must approve increases on others. Renata says it has had no approval for price revisions, identified about 190 SKUs with unsustainable margins and stopped making 136 and importing 16 [2 p.45]. The share of sales under direct price control is not disclosed (n.a.). In the model, DGDA policy works through two lines: domestic pharma growth (our bear case of 7% assumes a continued freeze and share loss) and the 40% pass-through we allow on cost increases.

Exports are 5.9% of sales but carry EU, UK, US and Australian approvals; we model 15% dollar growth

Standalone exports were BDT 2.18bn in FY2025 and BDT 2.29bn in FY2026 (+5.2%); with the Ireland and UK subsidiaries' sales the total was BDT 2.58bn and BDT 2.75bn (+6.3%) [1 p.48] [2 p.144]. Renata sells in 61 countries, signed 37 agreements in FY2025 (26 in the US and EU), filed 14 dossiers and won 20 approvals [2 p.43] [2 p.44]. Since then: EU-GMP for Rajendrapur and Mirpur (Jul-2025), Fludrocortisone and Hydrocortisone launched in the UK, Amantadine in Finland, Denmark, Sweden and Norway, a first product in Canada, Rivaroxaban capsules in Australia, MHRA approval for Esomeprazole MUPS (Jan-2026), Turkish approval of Rajendrapur (Jan-2026), an EU decentralised approval for levothyroxine in six countries (Jul-2026) and a first shipment to Portugal (Aug-2026) [6].

FY2026 export growth was slower than the approvals suggest: launches in regulated markets start small and need registration in each country. The dollar growth rate behind Renata's hedge accounting is 16.0% a year (FY2018–24 CAGR) [2 p.156]. We use 15%, 15% and 12% in dollars for FY2027–29F plus 3% a year of taka depreciation, taking exports to 7.2% of revenue by FY2029F. The export cash incentive fell from BDT 133m to BDT 60m in FY2026, with BDT 316m of claims still uncertified [1 p.50]; it ends with LDC graduation, so we halve it in FY2027F and remove it from FY2028F. Exports also service the IFC loan: its ten semi-annual instalments are paid from export proceeds [1 p.44].

Gross margin recovered to 44.8% in FY2026 from 41.0%; 70% of materials move with the dollar

Cost of sales is 65% of Renata's cost base [2 p.39]. In FY2025 materials rose 22% against 13.7% revenue growth because the taka fell 8.2% on Renata's average LC settlement rate and the company booked a BDT 230m obsolete-stock provision; factory overhead rose 17.3% on a post-unrest wage increase, energy prices and new depreciation [2 p.40]. Gross margin fell from 44.2% to 41.0%. In FY2026 raw-material consumption fell 2.1% to BDT 16.97bn while revenue rose 7.7%; electricity and fuel fell 3.0% and repairs 12.0% [1 p.48], giving 44.8%.

API imports. Bangladesh's industry imports nearly 90% of its APIs and raw materials [12 p.21]; Renata buys from more than 25 countries, India and China first [1 p.49]. It does not disclose an import share, so we assume 70% of materials are dollar-priced and that 40% of any cost shock is recovered in prices within the year. Materials then move from 36.9% of revenue in FY2026 to 37.7% by FY2029F under 3% annual depreciation, offset by a 0.2-point yearly mix gain. Factory overhead excluding depreciation is held at 14.9% (FY2026 14.7%).

Capacity and capex. Renata spent BDT 5.9bn in FY2024, BDT 4.6bn in FY2025 and BDT 3.5bn in FY2026 on plant, intangibles and dossier costs [2 p.109] [1 p.11]; BDT 13.67bn was in capital work-in-progress at Jun-25 (Kashor General, Hobirbari PPF3 and power plant at Bhaluka, oncology solid extension, solar) [2 p.47]. No total budget or utilisation by dosage form is published (a gap). We model BDT 3.8bn, 3.6bn and 3.5bn of capex for FY2027–29F and D&A at 5.3% of opening fixed assets, rising from BDT 2.04bn in FY2026 to BDT 2.30bn by FY2029F as Bhaluka is capitalised; less interest can then be capitalised, which is why our interest rate rises.

Net finance cost fell from BDT 1.69bn to 1.31bn in FY2026; we see BDT 1.14bn in FY2027F

Renata funded the FY2023–25 capex with debt: borrowings reached BDT 18.9bn at Jun-25 and debt to equity rose from 0.14 (FY2020) to 0.54 [2 p.42]. Interest expense went from BDT 0.76bn to 1.75bn in FY2025 because rates peaked at 11.2%, working-capital loans swelled with BDT 2.1bn of extra inventory, and less interest could be capitalised once projects finished [2 p.41] [2 p.147]. FX losses were small (BDT 29m): the profit fall was an interest problem, not an FX one.

The fix had three parts: a US$58.4m six-year IFC loan at SOFR plus a margin, partly swapped to fixed and hedged against export receipts (BDT 7.22bn outstanding at Jun-26) [1 p.44]; zero-coupon bonds and 10% redeemable preference shares; and in Oct-2025 a BDT 3.25bn non-cumulative 15% convertible preference issue, booked as equity, whose proceeds repaid about 12% debt [2 p.136] [2 p.137] [2 p.48]. Borrowings including leases were BDT 14.39bn at Jun-26 (BDT 9.86bn non-current) [1 p.8]. Interest before capitalisation fell from BDT 2.19bn to 1.64bn [1 p.50].

In the model, interest is average borrowings × rate. FY2026 interest of BDT 1.43bn on average borrowings of BDT 16.6bn is 8.6% after capitalisation and 9.9% before [1 p.50]; we use 9.0% from FY2027F because capitalisation shrinks as Bhaluka completes, and assume borrowings of BDT 13.5bn, 13.0bn and 12.5bn, which keeps cash near BDT 1.7bn. Net debt/EBITDA falls from 1.5x in FY2026 to 1.1x in FY2029F; interest cover rises from 4.6x to 7.3x.

Capital actions (last 24 months). EGMs on 12-Jan-2025 and 20-Sep-2025 approved the BDT 3.25bn preference issue and higher authorised capital (BDT 2.85bn ordinary, 5.4bn preference) [3 p.13] [6]. The shares list on DSE's ATB board as RENATAPS (issue price BDT 1,900 per lot), pay 15% a year on unconverted amounts when declared (non-cumulative), and convert into ordinary shares at a fixed BDT 475 in four phases from the end of year three (Oct-2028) [6]. That is 6.84m new shares, 6.0% of today's 114.7m. Cash dividends were 55% for both FY2025 and FY2026; there have been no bonus shares since FY2022 [2 p.42]. We value per fully diluted share and subtract the present value of preference dividends we assume will be paid until conversion (BDT 1,283m: BDT 488m for each of FY2027 and FY2028, then 407m, 285m, 163m and 41m as a quarter converts each October, each discounted from its payment date about six months after the year end).

LDC graduation removes the export incentive in FY2028F; the TRIPS waiver to 2033 limits the patent risk

Bangladesh graduates from least-developed-country status in November 2026. Two effects matter for Renata. First, export subsidies end: Renata booked BDT 60m of cash incentive in FY2026 (BDT 133m in FY2025) and had BDT 316m of claims awaiting auditor certificates [1 p.50]. Second, the TRIPS flexibility that lets local firms copy patented molecules will be phased out; the WTO pharmaceutical exemption runs to 2033 [12 p.22].

Renata does not disclose the share of sales from molecules still under patent (n.a.). As an estimate, our TRIPS risk case cuts domestic pharma growth to 3% in FY2029F, about 7% of domestic sales lost against base; that costs BDT 14 of fair value. Our LDC case (export growth 5% in dollars and no incentive from FY2027F) costs BDT 3. Tariffs on exports to the US are a further risk named by the company [2 p.15].

Operating cash flow covered profit 1.6x in FY2026; the low tax rate flattered EPS

Renata's profit is almost all operating: there are no associates and other income is small (an expense of BDT 116m in FY2026 after the BDT 215m plant write-down) [1 p.50]. Cash conversion improved as inventory came down from its FY2025 peak: NOCF per share was BDT 18.16 in FY2024, 41.16 in FY2025 and 49.88 in FY2026 [1 p.11] [2 p.42]. Inventory is still heavy at 190 days of cost of sales; we assume 185 days in FY2027F and 180 after, in line with management's inventory programme [2 p.48].

Quarterly EPS ran at BDT 6.47, 7.11 and 6.81 in Q1–Q3 FY2026 [6], so Q4 was BDT 11.37. Part of that is tax: the year's effective rate was 17.3% against a 20% applicable rate and 21.1% for 9M [1 p.51] [3 p.7]. We use 20% from FY2027F, so FY2027F EPS growth is 12.4%. Two items run the other way: the BDT 215m plant provision and a BDT 252m actuarial loss on gratuity that went through other comprehensive income, not profit [1 p.9].

We forecast EPS of BDT 35.69 in FY2027F and 11.7% growth a year to FY2029F

Each line has its own driver (Assumptions tab). Revenue is built from the five segments. Cost of sales is materials (dollar-linked), factory overhead at 14.9% of revenue and depreciation. Selling and admin are ratios of revenue at FY2026 levels. Interest is debt × rate; tax 20%; WPPF 5% of profit after the charge. The result: revenue BDT 50.8bn / BDT 56.0bn / BDT 61.5bn, operating margin about 12.7%, and EPS BDT 35.69 / 39.79 / 44.32. Diluted for the preference conversion, FY2027F EPS is BDT 33.68.

Against history. ROE was 17–20% in FY2020–22 and 6–11% since [2 p.42]; the seven-year median is 10.7%. Our forecast ROE is 10.4%–11.1%, near the recent range, because margins stay well under the FY2021–22 peak and the plant base is larger. Operating margin's six-year median is 13.4% (range 9.8–22.9%); we forecast about 12.7%. FY2021–22 margins were earned before the price freeze, the wage reset of 2024 and the Bhaluka build-out, so we do not treat them as normal. There is no published management guidance and no earnings-call slides or transcripts are in our filings corpus; the annual report's outlook is qualitative (cost pressure, price controls, debt reduction, export growth) [2 p.48].

Fair value BDT 146–350: DCF 246, peer P/E 214, peer EV/EBITDA 217; the price needs a 11.9% WACC

Cost of capital. Risk-free rate 9.268% (10-year bond, 25-Oct-2026) [10], equity risk premium 7.5%, beta 0.96 (raw 0.94 on 104 weekly returns against the DSEX, Blume-adjusted) [8]: cost of equity 16.5%. Pre-tax cost of debt 10% (Renata's 10.2% weighted cost at Jun-25 and 9.9% before capitalisation in FY2026 [2 p.41] [1 p.50]; system lending rate 12.13% [11]), tax 20%, debt weight 22.8% (Jun-26 borrowings over borrowings plus market cap): WACC 14.6%.

DCF. FCFF from the forecast for FY2027–29F, then five years fading revenue growth to 6.0% and EBIT margin to 14% (the six-year median of 13.4% plus Bhaluka scale). Working capital is heavy: inventory, receivables and advances less payables are 33.7% of revenue, so growth absorbs cash. EV is BDT 41.7bn, 62% of it terminal; less net debt of BDT 12.4bn and BDT 1,283m of preference dividends, over 121.5m diluted shares, gives BDT 246.

Multiples: peers, not Renata's own price. We do not anchor any multiple to Renata's current or recent price. Its own trailing P/E was 25x at the June closes of 2021, 2022, 2024 and 2025, but those years came with 17–20% ROE (2021–22) or a market that has since de-rated, and Jun-2023 sat at the DSE floor price (59.7x) [8]; any recent own multiple simply restates today's price. Its forward EV/EBITDA at June closes fell from 17.7x (2024, at the post-floor price) to 9.1x (2025) and 7.9x (2026): a falling line, not a band. Instead the P/E leg uses the median trailing P/E of the five other large DSE pharma companies, 7.49x (range 6.2–14.7x), and the EV/EBITDA leg their median trailing EV/EBITDA, 4.96x (range 4.1–9.9x) [9]. Because these are trailing (TTM, 29-Oct-2026) multiples, we apply them to Renata's own trailing base, the audited FY2026: diluted EPS of BDT 29.97 and EBITDA of BDT 8.08bn, so period matches period. Bear cases use the peer low; bull cases the second-highest peer (IBN SINA 11.5x P/E, Beacon 8.3x EV/EBITDA), leaving out the top outlier.

Cross-check: a justified P/E. With a cost of equity of 16.5%, long-run growth of 6.0% and a sustainable ROE of 11% (Renata's seven-year median, FY2020–26), the payout that funds that growth is 45% and the justified forward P/E is payout / (CoE − g) = 4.3x. On Renata's own returns, then, the 7.5x peer median we apply is generous, not harsh: the justified multiple is 4.3x, and 7.5x holds only if ROE moves well above 11%.

Reconciling the methods. The three legs sit within BDT 32 of each other: the DCF (246) implies 8.2x FY2026 diluted earnings and 5.4x FY2026 EBITDA, a little above the peer medians of 7.5x and 4.96x because it credits Renata's forecast growth, while the multiple legs (214 and 217), run back through our cash flows, imply a WACC of 15.2%–15.3%, against our 14.6%. The price is the outlier: BDT 425.9 is 14.2x FY2026 diluted EPS and 8.0x FY2026 EBITDA, and at our cash flows it needs a WACC of 11.9% or terminal growth of 10.1%. Put differently, the market is either applying a much lower risk premium to Renata than to its peers, or expecting ROE to return to the 17–20% of FY2020–22. We give the DCF 60% (above the sector spec's 50%) because only it captures Renata's debt paydown, the preference dilution and its heavy working capital, which net-cash peers such as Square do not share; P/E and EV/EBITDA take 20% each. The blend is BDT 234; probability-weighted (25/50/25) BDT 241.

Against peers. On 29-Oct-2026 Square traded at 7.5x trailing earnings with net cash, Beximco at 7.4x, ACME at 6.2x, IBN SINA at 11.5x and Beacon at 14.7x [9]. Renata's 13.4x is a premium for its export pipeline, animal-health leadership and AAA rating, set against higher debt and a 1.3% yield. Even our bull case, with near-top peer multiples, reaches only BDT 350; the price assumes Renata keeps a premium that its 10% ROE does not earn.

Sum of the parts is not used: the two subsidiaries are below every materiality test and there are no associates or listed holdings.

Risks: a weaker taka with dearer APIs cuts FY2027F EPS 43%; selling costs are the likeliest drag

Each risk names the line it moves and its effect in the model (single-factor recalculations against the base). Upside risks: faster EU and UK launches, a DGDA price revision, debt falling faster than we assume, and ROE returning toward the high teens, which is what the price assumes.

• 15-Nov-2026: record date for the 55% FY2026 dividend; 19-Dec-2026 AGM [6].
• Nov-2026: LDC graduation; watch export-incentive and TRIPS transition rules.
• Whether a preference dividend is declared for FY2027 (15% = BDT 488m).
• Q1 FY2027 interim: gross margin near 44–45% and S&D near 26.5% would confirm the base case.
• Oct-2028: first conversion of the preference shares at BDT 475.

Note on data. The latest statements used are the audited FY2026 financial statements (year to 30-Jun-2026) [1]; the full annual report (directors' report, segment commentary, plant capacity) is not yet in our corpus. The model will be updated when the Q1 FY2027 interim is filed.

FAQ

What is Renata's fair value?

We estimate BDT 146–350 a share (base 234) from a DCF (60%) and large-pharma peer P/E and EV/EBITDA (20% each) [13]. The price was BDT 425.9 on 29-Oct-2026 [8].

Why did Renata's profit fall in FY2024–25?

Net finance cost rose from BDT 0.70bn to 1.71bn as debt-funded capex, higher rates and extra inventory lifted interest expense to BDT 1.75bn; FX losses were only BDT 29m [2 p.147].

What did Renata earn in FY2026?

Revenue BDT 46.2bn, profit BDT 3.64bn, EPS BDT 31.76, NAV per share BDT 329.19 and NOCF per share BDT 49.88 (audited), with a 55% cash dividend [1 p.9] [6].

How large is Renata's animal-health business?

BDT 7.82bn in FY2026, 17% of revenue, and the market leader; sales were flat after +20.4% in FY2025 [1 p.48] [2 p.29].

Will the preference shares dilute shareholders?

Yes: BDT 3.25bn converts at BDT 475 from Oct-2028, about 6.84m new shares (6.0%); until then they can earn a 15% non-cumulative dividend, none of which was proposed for FY2026 [6] [1 p.41].

Are Renata Oncology and Renata Agro separate companies?

No. Both were amalgamated into Renata PLC (2019 and 2021) [1 p.41]; the only subsidiaries are small UK and Irish export companies.

Sources

1. Renata PLC audited consolidated and separate financial statements FY2026 (year to 30-Jun-2026), with auditor's report (ACNABIN, 17-Oct-2026) · link · accessed 2026-10-31
2. Renata PLC Annual Report 2024-25 (FY2025, year to 30-Jun-2025): consolidated and separate statements, directors' report, MD&A · link · accessed 2026-10-31
3. Renata PLC un-audited interim statements, 9M to 31-Mar-2026 (3Q FY2026) · link · accessed 2026-10-31
4. Renata PLC un-audited interim statements, H1 to 31-Dec-2025 (2Q FY2026) · link · accessed 2026-10-31
5. Renata PLC Annual Report 2023-24 (FY2024) · link · accessed 2026-10-31
6. DSE news archive, RENATA, Nov-2024 to Oct-2026: FY2026 results and 55% dividend (18-Oct-2026), quarterly PSIs, preference-share issue and ATB listing (2024-25), EU/MHRA/TGA/Turkey approvals, AAA rating (15-Sep-2026) · link · accessed 2026-10-31
7. The Business Standard, 17-Oct-2026: Renata profit jumps 64% on operational, management efficiencies · link · accessed 2026-10-31
8. AnalystBro price data (TradingView feed): RENATA daily, weekly and monthly bars, DSEX weekly, to 29-Oct-2026 · link · accessed 2026-10-31
9. AnalystBro screener: large DSE pharmaceutical stocks, close 29-Oct-2026 · link · accessed 2026-10-31
10. Bangladesh Bank treasury auctions: 10-year bond cut-off yield 9.268%, 25-Oct-2026 · link · accessed 2026-10-31
11. Bangladesh Bank, Scheduled Banks Statistics Apr-Jun 2026, Table-102 weighted average lending rate 12.13% · link · accessed 2026-10-31
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