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The share price of this micro-cap medical trading firm surged by 7 percent to an intraday high of Rs 152.20 per share after it acquired a domestic company.

With a market capitalization of Rs 262 crores, the shares of QMS Medical Allied Services Ltd surged 7 percent and closed at Rs 147 per share as on Friday’s market hours.

What happened:

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According to QMS’s stock exchange documents, the firm has acquired a 51 percent stake or 4,20,750 shares in Saarathi Healthcare Private Limited for Rs 45 crores, making it a subsidiary of QMS Medical Allied Services Limited.

Saarathi Healthcare’s revenue for the financial year 2022-23 was Rs 5,990.23 lakhs and the company focuses on disease management, early diagnosis, screening using POC devices, disease awareness, and therapy access programs.

Why it matters:

With this acquisition, QMS Medical Allied Services Limited is set to strengthen its position in healthcare, helping it reach more customers and enhance its services.

Financials:

Reviewing the financials of QMS Medical Allied Services Ltd on a year-on-year basis, revenues rose by 17.3 percent from Rs 104 crores in FY23 to Rs 122 crores in FY24. In the same timeframe, net profits increased from Rs 6 crores to Rs 9 crores, demonstrating a 50 percent increase. 

The EBITDA rose by 55.83 percent from Rs 7.15 crores in H2FY23 to Rs 9.05 crores in H2FY24. As of FY24, the debt-to-equity ratio stood at 0.44 times. 

The book value of the firm stood at 43.99 times, with EPS at Rs 5.04 during the same year.

Future Plans:

QMS Medical Allied Services Ltd has a three-year growth plan to invest Rs 100 crores in key areas. The key segments includes Humrahi Program focuses on white-labeling services for other pharmaceutical companies and B2C Expansion, while patient service programs aim to expand the workforce, service areas, and client coverage. Additionally, the Point of Care Program seeks to enhance the range of products and renewable offerings.

Industry Information:

The Total Pharma Market in India is estimated to reach a value of Rs 2,396 Billion in 2024, with the Retail Sector estimated at Rs 1,773 Billion alone.

Share Price Movement:

The shares of this company generated a negative return of 0.8 percent over the past year and a positive return of 12 percent over the past 6 months.

Shareholding Pattern:

As of March 2024, the firm’s shareholding pattern stood at 73.67 percent for promoters and 26.33 percent for the public.

About the Company:

Incorporated in 2017, QMS Medical Allied Services Ltd is a manufacturer and distributor of medical devices. The Company is engaged in marketing, trading, and distribution of a wide range of Medical Products, Medical and Surgical Instruments, Medical Equipment & Accessories, and Medical Devices.

Written by Zahal

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