Buy Poly Medicure; target of Rs 620: Dolat Capital Market
Dolat Capital Market is bullish on Poly Medicure has recommended buy rating on the stock with a target price of Rs 620 in its research report dated January 27, 2021.
January 29, 2021 / 07:01 PM IST
Dolat Capital Market's research report on Poly Medicure
Polymed’s Q3 results were exactly in line with estimates. Sales grew 13% YoY, EBITDA margins at 28.4% were steady on the back of cost efficiency measures. Reported PAT at Rs353mn was up 41% YoY. On the 9MFY21, company reported 11% growth in sales while the PAT growth has been stellar at 32% YoY. This is driven by sharp improvement in product mix led by new launches coupled with prudent fiscal measures. We believe introduction of products such as sterilized VTM Testing Kits, Personal Protection Kits and Face Protective Shield have also aided growth. The Company garners ~70% of its revenue from exports and 30% from domestic markets; Europe contributes 40% of the total export business.
Its flagship product IV Cannula contributes ~28-30% of total sales. Apart from IV Cannula, we expect its new launches of pre-filled syringes, catheters, and dialyzers to contribute meaningfully over the next 2-3 years.
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