Poly Medicure, a medical devices manufacturer, experienced a significant surge in its share price. During Thursday's trade, the stock soared by 15%, reaching an all-time high of ₹1,146.95 apiece. Notably, this marked the largest intraday gain for the stock in the past nine months.
The stock picked up steam after it dropped to a 52-week low of ₹662 apiece in June of last year, and it has since maintained the strong upside move by increasing 69% to this point.
Additionally, the stock has exhibited a substantial growth of over 286% in the last three-year period, in contrast to the movement in the Nifty Healthcare index, which has increased by 46.6% during the same period.
Poly Medicure is a medical device manufacturing company based in India. The company specializes in the production of medical consumables and devices for healthcare providers worldwide.
The company offers a wide range of products, including intravenous (IV) catheters, infusion sets, blood bags, disposable syringes, and other medical accessories.
In an interview with CNBC-TV18, Himanshu Baid, Managing Director of Poly Medicure, revealed plans to introduce a locally manufactured dialysis machine. He said the company is currently in the trial phase of developing the Make in India dialysis machine, which will have over 50% domestic content.
Baid stated that the company aims to produce 200 machines this year and increase production based on demand. During the interview, Baid said that the dialysis business currently contributes to 7-8% of Poly Medicure's total sales. This indicates the significant potential for growth in this sector.
Baid also shed light on the company's plans to venture into the critical care business. Furthermore, Baid expressed optimism about the registration of 4-5 Poly Medicure devices in the United States. Looking ahead, Poly Medicure anticipates revenue growth of 20% in the fiscal year 2024.
On the fundamental front, the company reported its highest-ever quarterly consolidated net profit of ₹59 crore in Q4FY23. It had achieved a net profit of ₹36 crore in the same period last year and ₹50 crore in the preceding December quarter.
During the quarter, the consolidated revenue from operations soared to ₹307 crore, a jump of 19% YoY from ₹258 crore in Q4FY22. On the operating performance front, EBITDA increased to ₹83 crore from ₹56 crore in Q4 FY22, while the EBITDA margin expanded by 500 basis points to 27%. The earnings per share (EPS) also improved significantly, to ₹6.13 from ₹3.77 in Q4 FY22.
4 analysts polled by MintGenie on average have a 'buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
