Saturday, May 22, 2010


Indian healthcare sector going through rapid changes
mainly due to increasing awareness of health , greater
thrust of government and penetration of health insurance
companies in rural areas. All these factors makes it a
sunrise sector in a country like India with huge
population. At present Indian healthcare a US$ 35 billion
industry and is expected to reach over US$ 75 billion
by 2012 and US$ 150 billion by 2017. Corporatisation of
hospitals is the new trend and big business groups are
all set to tap this huge opportunity. Apart from hospitals ,
medical disposables are another booming side of health care
industry.The Medical Device Industry in India is estimated
currently at about US$ 2.17 billion and according to
Industry experts, it is expected to reach a level of
around US$ 4.97 billion by 2012.
Poly medi-cure is one of the few listed players from
medical disposable space. This company manufacturers medical
devices and disposables under the brand name, Polymed.
Company’s products include different types of IV Cannulae,
IV infusion sets ,catheters and lot of other products
used for Anaesthesia, Urology, Gastroenterology,
blood management , dialysis ..etc. Poly medi cure is one
of the biggest exporter of these products from India.
Company is selling its products in almost 30 countries
at present. Most of its products are patented and
manufactured from US FDA approved plants. Recently company
won a patent litigation against German major
B Braun Melsungen AG in India and Germany.  Last year company
signed a supply agreement with Apollo group of hospitals.Company’s R&D
division is very active in inventing new products and
obtaining patents , which is very important for a
company like this. Now Company is planning to spend
Rs.250 mn each for the up gradation of its Faridabad plant
and also for starting a new plant in Jaipur which is mainly
meant for exporting. At present company having two
subsidiaries - US Safety Syringes Co., LLC, USA and
Poly Medicare (Laiyang) Co. Ltd, China .It also has a joint
venture in Egypt, Ultra for Medical Products, Egypt which
came to profit path last year.


Poly medicure has posted excellent results for the full year.
Company posted a sale of Rs.136 Cr v/s Rs.112 Cr and a net
profit of Rs.16.4 Cr v/s Rs.6 Cr last year . Company recently
rewarded the share holders with a bonus in 1:1 ratio and also
maintained the same dividend level (25%) even in expanded equity.
Company having a good history of setting targets and
achieving it. Now management targeting a sale of Rs.175 Cr
by 2011 and Rs. 350 Cr by 2013.


Considering the potential of the industry ,pace of growth
of company ,ability of the promoters and their attitude
towards share holders-it is expected to make POLYMEDICURE
a dark horse even from this  level. Currently it is
trading around Rs.130/-


  1. Yes, this is an excellent company for long term investment.

  2. No doubt , this company having great future .Thanks valuepick for inviting attention to this one.

  3. After rising so much ???
    chipka raha hain ye babu

  4. I done a project in this company during my study period.Really amazing one. One positive is this 10 crore equity company having just 1900 share holders ,such companies will move like anything and reward share holders handsomely .company posted an eps in ex-bonus equity greater than pre-bonus equity, so it can surely buy at this level too.
    Thanks VP ,I fully agree with you
    Mangal Reddy

  5. Congrats Value Pick, Good call sir ! I had bought these last month on reco of a paid service @ 108. Still holding and now after you've picked the same I shall never sell this gem. Thanks and keep it up !

  6. i have bought pre bonus at 114 on 2006 still holding as it was a gud company.. now i will reap the benefit.. wats ur tgt


    Words nahi hai Thareef karne ke liye, hamara great guru sharma ji, kya bole ga Sacchi Niklega. great. great. great..

    he told only one thing. 100 shares of shirpur in comming years is equivalent to one Mercedes Benz.

    It is true. Shirpur is going to Rock.. Hold it. dont sell it. Its goldmine....



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