Basic analysis of Polymedicure

Polymedicure’s basic analysis: Medical devices have been critical to tracking, identifying, and treating human diseases. During the pandemic, diagnostic tests and ventilators have been critical to reviving patients. These measures helped doctors and healthcare workers overcome the crisis. In this article, we will look at the basic analysis of Polymedicure, a company in the medical industry.

Basic analysis of Polymedicure

Company Overview

Himanshu Baid founded Poly Medicure, a medical device company, in India in 1995. The company has been recognized as the “Medical Device Company of the Year 2018” by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India, and has been recognized as India’s largest exporter of medical devices for six consecutive years.

Polymed has medical device manufacturing facilities in eight state-of-the-art manufacturing facilities around the world. Five manufacturing facilities in India (three in Faridabad, one in Jaipur and one in Haridwar) and three overseas (one wholly-owned subsidiary in Italy, one wholly-owned subsidiary in China) One has a manufacturing facility in Egypt. joint venture).

segment analysis

PolyMedicure categorizes its revenue into medical devices, which makes up 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%.

Poly Medicure is present in more than 125 countries, employs more than 30 clinical experts, and has a portfolio of more than 160 medical devices. The top five customers contribute more than 20-25% of revenue.

Industry Overview

As technology advances, health care and medical research advance. People’s life expectancy 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 expected to reach USD 429.1 billion by 2030, at an annual growth rate of 5.8% from 2022 to 2030. The Indian medical device industry shows great potential with an expected annual growth rate of 28% to reach $50. $1 billion by 2030.

India’s medical device market share in the global market is estimated at 1.65%. India is the fourth-largest medical device market in Asia after Japan, China, and Korea and ranks among the top 20 global medical device markets.

polymedicure – finance

Sales and Net Profit

The profit was 1 million won. 1,115.23 crores in FY23 compared to Rs. It increased by 20.81% to 923.06 crores in FY22.

Net profit recorded 160 million won. 179.28 crore in FY23 compared to Rs. It increased by 22.37% to ₹146.50 crore in FY22.

Sales and net profit are showing remarkable annual growth rates of 16.23% and 28.82%, respectively. Both are showing an upward trend from FY19 to FY23. The increase in sales is due to increased product sales.

profit

OPM was 27.11% in FY23 compared to 27.27% in FY22. The five-year average was 27.04%.

NPM was 16.01% in FY23 compared to 15.80% in FY22. The five-year average was 14.70%.

OPM increased from FY19 to FY21 and then decreased in FY22 and FY23. NPM increased along with OPM before declining in FY22 and increasing slightly in FY23.

rate of return

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

RoCE was 19.10% in FY23 compared to 17.42% in FY22. The average for five years was 21.15%.

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

debt analysis

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

Interest coverage in FY23 was 22.87 times compared to 32.68 times in FY22. The average was 17.77 times over 5 years.

Debt ratio has remained low and improving since FY21. The interest coverage ratio for FY23 is at a comfortable level. A slight increase in short-term loans and interest expenses affected the ratio. However, at PolyMedicure, you can easily cover the interest costs.

polymedicure – key indicators

Please tell us about Polymedicure’s key indicators.

polymedicure – Future Plans

• The company plans to increase its critical care segment offerings with expected revenues of $75 to $10 billion in three to four years as it has better margins.
• Polymedicure plans to expand its production capacity and its three plants in Faridabad are expected to start operations in the first, second and fourth quarters. The Jaipur SEZ plant is scheduled to become operational in the third quarter. The CAPEX plan for FY24 is expected to be $210 million.
• PolyMedicure is expanding the domestic market and securing market share from multinational companies, and is expected to grow by 10-12% in the critical care sector.

conclusion

As we get closer to the end, let’s take a quick look at polymedicure. PolyMedicure is a company that manufactures medical devices and has excellent financial soundness, with sales and profits increasing over the past five years. Returns were high and debt levels were manageable. As the industry expands and people’s health improves, life expectancy increases, which also benefits the company. The P/E was around 59x. What do you think about the company’s prospects? Let us know your thoughts in the comments section below.

Written by Santosh

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