Sandeep Raina, AVP at Edelweiss RCM Research told CNBC-TV18, "The business of Poly Medicure is very strong. The company is into Indian disposable market and they are into export. Also around 80 percent comes from export and 20 percent revenues are from India. The business is very difficult because typically you are getting into hospitals. A new company cannot get into this, you will take ages, so this company being a 20 year organisation, now has got in roads to a lot of big hospitals. Now they are able to use its products."
"Typically for business, I will give a very good rating to this company and I believe on valuation, it is stretched if I look at 30 P/E but still I would advise clients to get into this for long-term. If you are buying this company for six months, may be my answer would be no, let us not get into the stock but typically if you look for long-term, more than one and a half years, this again is a good counter to get into because this is a 30 percent return on capital (RoC) business, 20 percent growth business and margins are very high, so that should not be a problem," he said.
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