Hi Ranvir, these things are subjective in nature and one needs to take his own call. For someone 2-3 such things might be like a deal breaker and he maybe right to skip this company and focus on something else. For someone else who has more faith on the company, it may be immaterial. How the stock price will play out is anybody’s guess.
Cheers,
Ayush
Hi Ayush, I agree with you this is subjective in nature but one need to see the materiality also. In this particular case, total net transaction with related party is Rs. 28 crore (Job work-44 cr and Sale-Rs.16 Cr) which is not even 5 percent of total sale and In fact, transaction has declined over last year even when sales have increased image|281x499
Thanks for sharing the info!!!
Just one thing is worrisome in this company that management has significant influence on an unlisted company(Vitromed) doing almost same business…Even Vitromed’s website indicates that they are manufacturing same products as Polymed…
It’s huge red flag for me…though I don’t have any evidence of any malpractice/hanky-panki but I believe in ABSENCE OF EVIDENCE IS NOT EVIDENCE OF ABSENCE…
Above approach may result in losing a good opportunity but it’s fine with me…wish everyone success…
In that case they should merge businesses to be fair to shareholders else it will continue to have an overhang in land of poor corporate governance.
Instead of paying dividends, the company can reduce the debt using the same amount of cash.
Medical devices industry to get over Rs 3,000-cr booster dose
Q4 results…Annual EPS at 10.7
Q121 results are out. positive growth both on QoQ and YOY basis. Would be curious to know whats driving the growth. We have seen buying with good volumes in one month.
Pretty good numbers with about 400 bps margin expansion. I was expecting a tepid quarter given chronic treatments would have taken backseat during the quarter. The performance is very good despite that. Although my thesis for investing here was different its nice to see different positives playing out with the continuous support from the govt. from Feb, with this being the latest.
With 85% imports and expanding market and so many incentives, there are good chances of investments pouring in. Hope Polymed can capitalise.
Disc: Invested
Hello @phreakv6 was checking the results and wondering why
US Safety Syringes, Co., LLC was not included in the results? Any idea sir?
Insightful Tweet on Poly Medicure Ltd https://twitter.com/AnonymousInves7/status/1290322171152273410
Interesting to see the company move up the value chain in renal care. From dialyzer and dialysis catheter kits, they seem to have now added Dialysis machines too.
46315_DialEzeeBrochure24.6.20.pdf (1.0 MB)
Product list: 46317_CataloguePML.pdf (4.1 MB)
Thanks for sharing. This is interesting. Recently somebody had shared that PolyMed has launched Oximeters also and are being sold through Apollo Pharmacy chain. If the company is successfully able to do these things and scale up, it will be great.
@ashkrithik - DialEzee is a very good move up the value chain and makes it a very strong play in the Dialysis segment. A lot of the govt.'s money is going into supporting dialysis and this is a very large unaddressed market if my research is accurate.
@ayushmit - I had checked on the Pulse Oximeter earlier on Apollo Pharmacy. I don’t think Poly Medicure manufactures this as there are several models that look very similar and so could be just Chinese white label products. Even if they do distribute I think they will just make trading margins in this and the market size also very small for it.
Disc: Invested
While my initial thesis was only on the Dialyzer, the larger market is the Dialysis machine itself. This can be a big import substitution play.
The machine imports have been on a strong uptrend last few years. Will be great if someone can check on the quality of Polymed’s machines and feedback from hospitals, if any.
I am surprised to see that import of Dialysis machine is to the tune of Rs. 500 crore only. We must explore the full market itself.
Disclosure - Not invested, therefore just posting questions but ready to chip in research if someone interested/invested in ready to devote time.
