Polymed has to compete with imported products within India and abroad they need to compete with B Braun , BD, Baxter, J&J outside India. B Braun is having the same EBITDA margin for the last five years. So is the case with Polymed. If we go by your argument that it is a disproportionate business why EBITDA margins have not improved. A stability in EBITDA margin shows a mature business not a growing business or dis proportionate business.
I could find all the names like Braun,BD,Baxter in FDA site but not Polymed. this is somewhat perplexing. Do you have a document which says they got USFDA approval for all its four facilities. I could get some newspaper reports in this thread. Not even a filing with BSE/NSE
US is the largest market for medical devices which Polymed is not able to penetrate.
- BCC Research estimates the global market for medical device technologies as $390.3 billion in 2012. This indication has reached $411.8 billion in 2013 and is expected to reach $538.7 billion in 2018, registering a compound annual growth (CAGR) of 5.5% over the next five years.
- North America as a segment will grow from $187.6 billion in 2013 to nearly $225.4 billion by 2018 at a 3.7% CAGR for the period 2013-2018.( No presence at all)
Asia is the largest segment of the global market for medical device technologies and it has reached $7.1 billion in 2013 and is expected to reach $10.8 billion by 2018, increasing at a CAGR of 8.5% from 2013 through 2018. ( Braun is already present in Vietnam, etc) India so much fragmented where price plays an important than quality and it is doctors\hospital driven)
A future growth for Polymed comes from maintaining the present European share( doubtful), penetrating US (no concrete plans yet) and Asia (we all know about India, no presence except a small one in China)
I dont give much credence Management Reports as full details will not come out for various reasons and always biased except for some mature companies.
I also suggest you read the Management Report given by B Braun to understand the business more fully and the hurdles in the business.
I will be happy if you come with a convincing data instead of browbeating me. Produce some convincing data instead of verbose.