The company engages in the manufacturing, import, assembly, and marketing of a comprehensive portfolio of medical equipment and disposables. The company started operating in 1989 by importing and marketing meditapes across India from the JMS Company of Japan. Later in 1999, it started manufacturing medical equipment.
The company operates in two lines of business - medical equipment and medical disposables.
It covers a wide spectrum of medical lines including
- Renal care
- Cardiovascular disease
- Respiratory disease
- Critical care and radiology
Currently, they operate three manufacturing units in Achad, Atgaon, and Bhiwandi. JMS, Aero Plus, and Safecath are the brands owned by the company.
Hemant Surgical Industries Limited IPO Details
Hemant Surgical IPO is a fresh issue offer consisting of 2,760,000 equity shares aggregating up to Rs. 24.84 crore.
The lower and upper price bands are fixed at Rs. 84 and Rs. 90 per share, respectively. The offer window will open on BSE SME on May 24, 2023, and the stocks will list on June 5, 2023.
Hemant Surgical Industries Limited IPO Objective
The objectives of Hemant Surgical Industries IPO are listed below.
- To fund capital expenditures incurred in plant and machinery installation
- To meet working capital requirements, general corporate purpose, and issue expenses
Should you invest in Hemant Surgical Industries Limited?
Here are a few important reasons to consider before investing in the IPO:
- Started in 1989, the company has experience in the domain for more than three decades.
- It offers a comprehensive, diversified product portfolio catering to a wide clientbase in India and international locations such as Philippines, Nepal, Bangladesh, Bhutan, Burundi, Kenya, Nigeria, Ivory Coast, France, Seychelles, etc.
- The company is well positioned to capitalised on the industry tailwind. The Indian medical device market is projected to reach $50 billion between 2020 and 2025.
Competitive Peers
The other player as recognised by the company in DRHP is Poly Medicure Ltd.
Noteworthy Highlights of Hemant Surgical Industries Ltd.
- The company exhibited stable financial performance in the last three fiscal years with an improved margin.
- Revenue from operations grew at a 35.14% CAGR from FY21 to FY23.
Hemant Surgical Industries Company Financials
| Particulars | Year ending in March 31, 2023 | Year ending in March 31, 2022 |
|---|---|---|
| Revenue from Operations | 10,914.82 | 10,357.00 |
| Profit After Tax (PAT) | 765.11 | 461.40 |
| PAT Margin | 7.01% | 4.45% |
| EBITDA | 1016.89 | 626.82 |
| EBITDA Margin | 9.32% | 6.05% |
| EPS | 10.23 | 8.96 |
| Total Asset | 6,490.79 | 5,437.59 |
Know before investing
Strengths
3It has access to a comprehensive market in India and an extended sales network.
Experienced management and a team of professionals have helped the company build a success story.
The company is focusing on deepening its geographical presence.
Risks
3Difficulties in sourcing and supplying raw materials can hamper the company’s
Termination or non-renewal of agreements with 3rd party suppliers can affect its revenue from operations.
A loss of a customer can be detrimental to its future performance and revenue.
