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Kunvarji_Researchdesk_IPO Coverage_Medplus Health Services Limited (Medplus Health IPO) Flipbook PDF
Kunvarji_Researchdesk_IPO Coverage_Medplus Health Services Limited (Medplus Health IPO)
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Medplus Health Services Limited
(Medplus Health IPO)
IPO COVERAGE Issue Opens
13-Dec-2021
Issue Closes
15-Dec-2021
Issue Size
Rs. 1398.30 Crore
Price Band
Rs. 780 - Rs. 796
Post issue market cap
~Rs. 9497 Crore at Upper band
Min. Lot Size
18 Shares P/Lot
Face Value
Rs. 2.00 P/Share
Issue details
Fresh issue of Equity shares of Rs. 2, aggregating up to Rs. 600.00 Cr & Offer for sale aggregating up to Rs. 798.30 Cr
About the Company
Second-largest pharmacy retailer in terms of the number of stores as on FY21 The Medplus Health Service Limited incorporated in 2006, Company has achieved status as India's second-largest pharmacy retailer in terms of the number of stores and revenue for the period of FY21. Company mainly offers wide range of products, such as (a) pharmaceutical and wellness products, which includes medicines, vitamins, medical devices and test kits and (b) fast-moving consumer goods, such as home and personal care products, including toiletries, baby care products, soaps and detergents, and sanitizers & etc. Company has achieved tremendous growth in their retail store network from 48 stores during the initial stage to 2000 store as on FY21, mainly distributed across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and Maharashtra.
Rating
SUBSCRIBE FOR LONG-TERM Page-1
Date: 11 -Dec -2021
Medplus Health Services Limited Objectives of the Issue Company proposes to utilise the Net Proceeds towards funding of the following objects such as Investment into our Material Subsidiary, Optival for funding working capital requirements of Optival; and General corporate purposes.
Shareholding pattern
Issue break-up QIB NIB Retail Employee Total
BRLMs Registar
% of Issue (Rs. Crore) 50% ~Rs. 696.65 15% ~Rs. 208.99 35% ~Rs. 487.65 5.00 100.0% Rs.~ 1398.30
Shareholding Pattern Promoter and promoter group Public Others Total
PostIssue
43.16%
40.43%
56.84% 100.0%
59.57% 100.0%
Credit Suisse Securities, Edelweiss Financial, Nomura Financial, Axis Capital Link Intime India Pvt. Ltd. Managing Director and Chief Executive Officer Gangadi Madhukar Reddy
Non-Executive Independent Director Atul Gupta
Key Management
Non-Executive Independent Director Madhavan Ganesan
Chief Operating Officer – outlet operations Cherukupalli Bhaskar Reddy
CFO of the company Hemanth Kundavaram Page-2
PreIssue
Non-Executive Director Anish Kumar Saraf
Non-Executive Independent Director Murali Sivaraman
Non-Executive Independent Director Hiroo Mirchandani
Chief Operating Officer – MedPlus Mart Surendranath Mantena
Company secretary and compliance officer Parag Jain
Medplus Health Services Limited
Financials Particulars
Aug’21
Aug’20
FY-21
FY-20
(Rs. Crore) FY-19
Equity share capital Reserves Borrowings Networth Revenue from operations Operating EBITDA EBITDA Margin (%) PAT NAV (Rs.) RoNW (%) EPS (Rs.)
6.44 794.54 56.75 800.98 1879.92 107.81 9.02 66.37 73.71 8.35 6.16
0.19 590.15 86.38 590.34 1462.56 98.60 7.29 22.27 56.3 3.83 2.18
0.45 730.11 135.25 730.55 3069.27 175.06 7.76 63.11 68.48 8.74 5.99
0.19 527.61 105.05 527.80 2870.60 99.14 5.26 1.79 50.90 0.41 0.21
0.19 291.14 104.40 291.34 2272.74 65.73 5.78 11.92 32.55 4.09 1.33
Page-3
Medplus Health Services Limited Key Financials:- Total revenue from operations grew at a (CAGR) rate of 16.21% from Rs. 2272.74 Crore to Rs. 3069.27 Crore from FY19 to FY21 fiscals. - Operating ROCE for the FY20 and FY21 and (6M) September 30, 2021 was 19.87%, 26.08% and 13.40%, respectively. - Operating EBITDA grew at a CAGR of 63.21% from Rs. 65.73 Crore in FY19 to Rs. 175.06 Crore in FY21, and was Rs. 107.8.5 Crore in (6M) September 30, 2021. - Operating EBITDA margin grew stood at 2.89%, 3.45%, 5.70%, 6.74%, and 5.74% for the periods of FY19, FY20, FY21, Q2FY21 and Q2FY22 periods, respectively. - As per geography wise share of the organized pharmacy retail market based on revenue from operations in Chennai, Bangalore, Hyderabad and Kolkata stood at 30%, 29%, 30% and 22% respectively. In terms of number of stores as of FY21. - Company has reported negative cash flow by Rs. (46.82) Crore, Rs. (8.86) Crore, Rs. (28.42) Crore, Rs. (44.54 Crore) and Rs. (31.07) Crore for the periods of FY19, FY20, FY21, Q2FY21 and Q2FY22 fiscals only. - Our stores are geographically concentrated as on of FY19, FY20, FY21 and Q2FY22, an aggregate of 1,370, 1,449, 1,659 and 1,792 stores were located in the states of Karnataka, Tamil Nadu, and Telangana and Andhra Pradesh, representing 82.88%, 81.63%, 79.72% and 77.04% of our total stores, respectively.
Outlook: Subscribe for Long term Company has maintained a strong focus on scaling up their store network, as Medplus has also extended their leadership position from offline sales of pharmaceutical products to online sales of pharmaceutical products, through omni-channel platform, since 2015. Otherside Company has history and track record of over 15 years with well-established brand. We believe Medplus could outperform in coming period with its high brand visibility and focused implementation of marketing and advertising initiatives. However, company strong competition from Apollo Pharmacy, Wellness Forever, Frank Ross Pharmacy, Noble Plus Pharmacy & Skin Care, Tata 1mg, NetMeds, and PharmEasy. The company has reported EPS at Rs. 6.16, Rs. 2.18, Rs. 5.99, Rs. 0.21, Rs. 1.33 for the periods of Q2FY22, Q2FY21, FY21, FY20, FY19 fiscals. It is valuing at P/E 129.22xQ2FY22, 365xQ2FY21, 132.88xFY21 fiscals.
We recommend to ‘SUBSCRIBE’ issue for long term basis. Page-4