Poly Medicure a market performer: Karvy

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Broking house, Karvy Stock Broking has recommended market performer rating on the Poly Medicure with target of Rs 172.

Karvy Stock Broking report on Poly Medicure:

"We expect net revenues for the quarter to increase by 23% to Rs 208.32mn. Operating Profits for the quarter is estimated to move up by 31% to Rs 40.11mn. Savings in excise cost and Staff expenses will lead margin increase from 18.1% to 19.3%. We expect net profits for the quarter to grow by 57% to Rs 20.71mn."

"Recently, the company has secured an export order of Rs 85mn from Middle East for the supply of Medical Disposables. Part of these revenues would be reflected in the current year and part would be reflected in the next year. We expect the company to continue its current trend of strong performance in the exports market on the back of several initiatives on the export front."

"We estimate Polymed's exports to grow by 40% growth YoY and clock higher momentum from domestic segment due to increased demand from corporate hospitals, clinics and private nursing homes. The company's Safety products are expected to pan out by end of March FY07 and will aid margins. Polymedicure is expected to see higher scale up in volumes on back of commencement of an EOU at Faridabad  (operational by end of CY06), Hardiwar plant (commercialize from March 2007), Safety Syringes and greater traction in other markets." 

"We rate the stock as a Market Performer with a price target of Rs 172."