Poly Medicure - Rs.85.00

Incorporated in 1995, Poly Medicure Ltd (PML) was conceived and established by a group with the purpose to make modern healthcare available to mankind at an affordable price. And in a short span of time, PML has grown into one of the most dynamically versatile manufacturers of disposable healthcare products with over 40 different products. With the help of its strong R&D division, PML has developed and innovated several high quality medical disposables products for Infusion Therapy, Anesthesia, Urology, Blood Management, Surgery, Wound Drainage, Gastroentrology etc. At present, exports constitute around 85% of its turnover and its products are exported to more then 40 countries across the globe. It has successfully implemented a quality management system and has been accredited by SGS Yarsley International Certification Services, United Kingdom, with ISO 9001:2000, ISO-13488: 1996 and CE mark for some of its products. For the rest of the products, the company has been accredited CE mark by DNV of Norway making its entire product range worth of International Quality Standards

PML manufactures its products using state-of-the-art technology in ultra modern factories covering over 1,00,000 square feet of manufacturing floor space. A tool room with modern facilities and CNC machines support the production processes. A high degree of automation and an effective process control help in complying with GMP requirements. Its quality assurance system encompasses a comprehensive and exhaustive series of visual, physical, chemical, biological & microbiological tests and inspection at different stages in the production cycle. To keep pace with the ever-changing requirements of the market the company has the latest CAD / CAM technology and well-equipped R & D section to design and develop new and innovative products. With a total investment of more than Rs.50 cr., the company has upgraded, modernized and increased its production capacity to meet the growing demand. Currently its installed capacity is more than 120 million units of Medical Disposables.

To increase its presence in the international market, PML has recently acquired a majority stake in an USA based company in the field of medical devices. The annual demand for medical disposables is increasing globally at the rate of 10-12% as India gears to become the ultimate health tourism destination by upgrading the existing infrastructure to global standards. All this augurs well for the company. For FY06 it is expected to make sales of Rs.70 cr. and NP of Rs.5.75 cr., which may rise to Rs.90 cr. and NP of Rs.6.75 for FY07. This translates into an EPS of Rs.11 & Rs.13 respectively on its current equity of Rs.5.40 cr. With its 52-week High/Low at Rs.147/70, investors are recommended to buy this scrip with a price target of Rs.125 for 50% appreciation in 12~15 months.