Fundamental Analysis Of Poly Medicure: Medical devices were critical in tracking, identifying, and curing diseases in humans. During the pandemic, diagnostic tests and ventilators were critical in reviving patients. These measures aided doctors and healthcare workers in overcoming the crisis. In this article, we will look at Fundamental Analysis Of Poly Medicure , a company that works in the medical industry.

Fundamental Analysis Of Poly Medicure

Company Overview

 Poly Medicure Logo Image

Himanshu Baid founded the Poly Medicure in 1995, specialising in medical devices in India. The Department of Pharmaceuticals, Ministry of Chemicals & Fertilisers, Government of India has recognised the company as the “Medical Devices Company of the Year 2018” and has been recognised as the Largest Exporter of Medical Devices from India for six years in a row.

Polymed has medical device manufacturing facilities in eight cutting-edge manufacturing facilities worldwide. It has five manufacturing facilities in India (three in Faridabad, one in Jaipur, and one each in Haridwar) and three overseas (one in Italy as a wholly owned subsidiary, one in China as a wholly owned subsidiary, and one in Egypt as a joint venture).

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Segment Analysis

The Poly Medicure classified revenue as medical devices, which accounts for the majority of the company’s core business. In FY23, India contributed 31.02% of the revenue, while the rest of the world contributed 68.97%. 

The Poly Medicure has a presence in over 125 countries, employs over 30 clinical specialists, and has a portfolio of over 160 medical devices. The top 5 customers contribute over 20% to 25% of the revenue.

Industry Overview

Healthcare services and medical research advance as technology advances. The life expectancy of people can gradually increase over time. Medical devices are one of the many opportunities for growth in the healthcare industry.

The global market for disposable medical supplies is projected to reach $429.1 billion by 2030, with an annual growth rate of 5.8% from 2022 to 2030. The Indian medical devices industry shows great potential, with an anticipated annual growth rate of 28%, reaching $50 billion by 2030. 

The Indian medical device market share in the global market is estimated to be 1.65%. After Japan, China, and South Korea, India is the fourth-largest Asian medical device market and ranks among the top 20 global medical device markets.

Poly MedicureFinancials

Revenue and Net Profit

The revenue was Rs. 1,115.23 crores in FY23 compared to Rs. 923.06 crores in FY22, an increase of 20.81%.

Net profit stood at Rs. 179.28 crore in FY23 compared to Rs. 146.50 crore in FY22, an increase of 22.37%.

Revenues and net profits are growing at a staggering rate of 16.23% and 28.82% CAGR, respectively. From FY19 to FY23, both are on the rise. The increase in revenue was due to increased product sales.

Particulars/Financial YearRevenue (Cr.)Net Profit (Cr.)
2022-23₹ 1,115.23₹ 179.28
2021-22₹ 923.06₹ 146.50
2020-21₹ 786.46₹ 135.87
2019-20₹ 687.23₹ 95.87
2018-19₹ 610.82₹ 65.40
CAGR (4 Years)16.23%28.82%

Profit Margins

OPM was 27.11% in FY23 as compared to 27.27% in FY22. Over five years, the average was 27.04%. 

NPM was 16.01% in FY23 as compared to 15.80% in FY22. Over five years, the average was 14.70%. 

OPM increased from FY19 to FY21 before declining in FY22 and FY23. NPM increased in tandem with OPM before taking a dip in FY22 and slightly increasing in FY23.

Particulars/Financial YearOPM (%)NPM (%)
2022-2327.11%16.01%
2021-2227.27%15.80%
2020-2129.72%17.19%
2019-2026.74%13.89%
2018-1924.38%10.65%
Average (5 Years)27.04%14.70%

Return Ratios

RoE was 15.42% in FY23, up from 14.29% in FY22, with a 5-year average of 18.16%.

RoCE was 19.10% in FY23 as compared to 17.42% in FY22. The average stood at 21.15% over 5 years. 

RoCE was higher than RoE, indicating better debt utilisation. RoE peaked in FY20, then fell in FY21 and FY22 before improving slightly in FY23. The RoCE followed the same pattern as the RoE.

Particulars/Financial YearRoE (%)RoCE (%)
2022-2315.42%19.10%
2021-2214.29%17.42%
2020-2119.42%21.96%
2019-2023.51%24.80%
2018-1918.19%22.47%
Average (5 Years)18.16%21.15%

Debt Analysis

The debt-to-equity ratio was 0.12 in FY23 and remained unchanged in FY22. Over five years, the average was 0.25. 

In FY23, interest coverage was 22.87 times, compared to 32.68 times in FY22. Over five years, the average was 17.77 times.

The debt-to-equity ratio has remained low since FY21 and has been improving. In FY23, the interest coverage ratio is at a comfortable level. A slight increase in short-term loans and interest costs has impacted the ratio. However, the Poly Medicure can easily cover the interest costs.

Particulars/Financial YearD/EInterest Coverage
2022-230.1222.87
2021-220.1232.68
2020-210.1417.92
2019-200.477.14
2018-190.428.28
Average (5 Years)0.2517.77

Poly MedicureKey Metrics

Let us know about some of the key metrics of Poly Medicure.

ParticularsAmountParticularsAmount
CMP₹ 1,528Market Cap (Cr.)₹ 13,969
EPS (TTM)₹ 24.35Stock P/E (TTM)60.41
RoE (%)17.47%RoCE (%)21.53%
Promoters Holding (%)53.16%FII Holdings (%)14.49%
Price to Book Value10.55Debt to Equity Ratio0.12
Enterprise Value (Cr.)₹ 14,104.31Net Interest Margin (%)16.01%

Poly MedicureFuture Plans

  • The company plans to increase its critical care segment products with an expected revenue of 75 to 100 crores in a three to four-year span as it has better margins.
  • Poly Medicure intends to expand its capacity, and three plants in Faridabad will begin operations in Q1, Q2, and Q4. Jaipur SEZ plant is expected to start in Q3. The CAPEX plan for FY24 is expected at 210 crores.
  • The Poly Medicure has been expanding in the domestic market and gaining market share from multinational corporations, and it is expected to grow 10% to 12% in the critical care segment.

Conclusion

As we near the end, we will take a quick look at Poly Medicure.Poly Medicure manufactures medical devices, and their financials are strong, with revenues and profits increasing over the last five years. Their return ratios have also been strong, and their debt levels are manageable. The industry is expanding, and as people’s health improves, their life expectancy will rise, which will benefit the company as well. P/E stood around 59 times. What are your thoughts on the company’s prospects? Let us know your views in the comments section below.

Written by Santhosh

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