Poly Medicure – Aiming to global medical devices market

“In the next three to five years, our focus will be on safety devices market. We are expecting our revenues to grow from Rs 135 crore to Rs 300 to 400 crore by 2013” – Rishi Baid, executive director, Poly Medicure Ltd

We recently discussed about Poly Medicure which is one of the biggest exporter of IV Safety Cannulae and other healthcare disposable products. Now it is looking to expand in global markets too and targeting a 10% global market share.

If the company is able to do a turnover of even 165-170 Cr next year, the stock is trading at just 5-6 times FY11 expected earnings.

Pharmabiz discusses about the talks with management:

The New Delhi-based Poly Medicure Pvt Ltd, manufacturer and supplier of medical devices and disposables, is planning to invest Rs 100 crore by 2013 to expand its presence in overseas market with a thrust on safety medical devices and outsourcing manufacturing and research activities.

The company, which currently has almost 75 per cent of its total Rs 135 crore revenue from exporting products to more than 80 countries including US and Europe, is planning to invest around Rs 100 crore within 2013 to increase its presence in global market and to explore the potential of outsourcing market, said Rishi Baid, executive director, Poly Medicure Ltd. The company is also mulling on acquiring a medical devices company with research and development focus in US, by spending around USD 20 to 30 million.

“In the next three to five years, our focus will be on safety devices market. We are expecting our revenues to grow from Rs 135 crore to Rs 300 to 400 crore by 2013,” Baid averred. The target for the financial year 2010-2011 is fixed at Rs 175 to 200 crore.

The company sells its safety device products to almost 30 countries including South America and Middle East. The safety devices portfolio is expected to increase to 30 to 40 per cent of its revenue in next five years, from a meager eight per cent reported at present, he added.

Poly Medicure is currently operating on selected medical devices and disposables segment, which has a potential up to Rs 1000 crore and currently has five per cent market share. Through the capacity expansion, the company is targeting to bag 10 per cent of the market share by 2012.

8 thoughts on “Poly Medicure – Aiming to global medical devices market”

  1. Hi Ayush

    Recently it seems that promoters of Poly Medicure have reduced their holding in March Qarter. Do you have any idea on the same?

  2. Hi Ayush

    Tt seems that recently promoters of Poly Medicure have reduced their holding in March Qarter. Do you have any idea on the same?

  3. Nishant,

    I don't think there is a reduction. Changes to the extent of .1-.2 % are nominal and do come up at the time of corporate actions like – Bonus Issue.

    Infact over the years the promoters have increased their stake in the company.

    Also, most of the floating stock is concentrated as one can see in the shareholding pattern.

    Regards,
    Ayush

  4. Dear Aush,
    Is it still a buy at CMP (Rs. 262 on 20th June) or should I wait for decline?
    What is estimated EPS for FY 2011?

    Please also guide the readers on whether we should wait for more market decline to invest in some of the ideas proposed on this web site. Or we should start nibbling in these stocks at CMP.

    Thank you.
    Girish

    1. Hi Girish,

      Polymed is a good company growing continuously at the rate of about 20-25%. If one is holding, he should continue to hold.

      For fresh buying, I would say one should target the stock on declines only. The EPS for FY 2011 was 20.

      I think there is value in the midcap space, one should start buying quality stocks in a systematic manner – i.e.. spread over next few months.

      Regards,

        1. I don’t think there is any need of panic or something. As the markets have been quite dull, the stocks seems to be sliding on very low volumes.

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