Corona Remedies Vs Wakefit Innovations: A Tale of Two IPOs
Monday will mark the issue opening for two companies – Wakefit Innovations and Corona Remedies. The two mainboard IPOs are distinct from one other and therefore, offer investors some amount of variety.
While Corona Remedies is a profitable and stable pharmaceutical player, Wakefit offers the new-age, digital glam, but comes with burdening losses and stretched valuations.
Corona Remedies: A Profitable Pharmaceutical Player
Corona Remedies is viewed quite favourably by most brokerages. As an Indian-focused branded formulations company, Corona has garnered a ‘subscribe’ rating from both Canara Bank Securities and Swastika Investmart.
These firms have highlighted company’s robust financial health, with an impressive revenue CAGR of 16.8% between 2022 and 2025. This is nearly double the industry growth.
Moreover, Corona Remedies’ PAT has soared 65% to Rs 149 crore in FY25, while the Ebitda margin has expanded to over 20%, indicating strong operational efficiency.
Although the price to earnings of 43x at the upper price band of Rs 1,062 is considered expensive by many, analysts argue that the company’s superior growth compared to the industry, coupled with a strong operational efficiency justifies that valuation.
Capital Markets, meanwhile, has added a ‘may apply’ view to Corona Remedies, citing low exposure to price-controlled medicines (NLEM) as a key advantage.
Wakefit Innovations: A New-Age D2C Sleep Solutions Brand
Wakefit Innovation serves as a contrast to Corona Remedies. It is a new-age D2C sleep solutions brand, which is burdened with losses.
Swastika Investmart has issued an ‘avoid’ rating on Wakefit, pointing to the company’s widened net loss of Rs 35 crore in FY25. This loss came despite a 29% revenue jump during the same period.
The report from Swastika Investment also criticises the valuation of the company, citing it as ‘expensive’. It points to a negative Return on Net Worth (RoNW) and an EV/EBITDA multiple of nearly 108x, which significantly outstrips established peers like Sheela Foam.
Capital Markets, on the other hand, holds a ‘neutral’ stance, describing Wakefit’s valuation as ‘costly comfort’.
While Wakefit’s strong brand recall and omni-channel strategy remain positives, its relatively low Ebitda margin and highly competitive nature of the organised furniture market remain a concern.
Comparison of Corona Remedies and Wakefit Innovations
Both Corona Remedies and Wakefit Innovations have their strengths and weaknesses. Corona Remedies is a stable pharmaceutical player with a strong financial health, while Wakefit Innovations is a new-age D2C sleep solutions brand with a strong brand recall.
However, Wakefit’s burdening losses and stretched valuations are a major concern, while Corona Remedies’ expensive valuation is also a factor to consider.
Ultimately, the choice between Corona Remedies and Wakefit Innovations depends on the investor’s risk appetite and investment goals. If you’re looking for a stable pharmaceutical player with a strong financial health, Corona Remedies may be the better bet. However, if you’re willing to take on more risk and invest in a new-age D2C sleep solutions brand with a strong brand recall, Wakefit Innovations may be worth considering.
It’s also important to keep in mind that the Indian stock market is highly volatile, and investors should always do their own research and consult with a financial advisor before making any investment decisions.
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