Poly Medicure on a dream run after Q3 numbers

Our Bureau Chennai | Updated on February 19, 2014 Published on February 19, 2014

Shares of Poly Medicure have been gaining in the last few months along with rising trading volumes. The stock has regained over 60 per cent since it turned ex-bonus in 2013. There was no stopping the stock gains since October. However, the stock’s gain has been quite steep after it announced its December quarter performance on January 27.

Poly Medicure is engaged in manufacturing and marketing medical disposables, products such as intravenous (IV) cannula, blood transfusion set and insulin syringes.

The company has manufacturing facilities in Faridabad (Unit II — USFDA approved) and Haridwar and a subsidiary in China. The company fetches around 70 per cent of its revenue from exports.

The net profit of Poly Medicure rose 34 per cent to ₹11.06 crore in the quarter ended December 31 against ₹8.25 crore a year ago. Sales rose to ₹84.04 crore from ₹63.12 crore.

Poly Medicure commands leadership position in the organised medical disposable market in India, making more than 90 products. It has gained expertise in manufacturing variety of products such as IV cannula, Safety IV cannula and insulin syringe. It is a leading exporter and supplier of IV cannula, safety IV cannula, IV infusion sets and blood bags to over 80 countries across the world.

According to SBICap Securities, over the years, overseas markets are the company’s major revenue-drivers. Currently, the export business is contributing 70 per cent of the total revenue compared with 75 per cent in FY11. The management is confident of bringing this to 65 per cent by FY15.

The company wants to have a bigger pie of the growing Indian market of medical devices and disposables.

Poly Medicure is in the process of scaling activities domestically by increasing footprints across the country through expansion of distribution network to reach more number of hospitals and doctors.

The company had last year rewarded its shareholders a 1:1 bonus issue.

Published on February 19, 2014
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