Stock of this medical equipment company has tanked 74% so far in 2022

Shares of Nureca hit a 20-month low of Rs 562.50,down 3%, trading close to its record low of Rs 559.25 touched on March 19, 2021

Shares of Nureca, a digital healthcare and wellness solutions provider, continued to reel under pressure and hit a 20-month low of Rs 562.50, down 3.5 per cent on the BSE in Friday’s intra-day trade. The stock is trading close to its all-time low level of Rs 559.25, touched on March 19, 2021.

Thus far in the calendar year 2022 (CY22), the market price of Nureca has tanked 74 per cent, after the company reported net loss for the third straight quarter. In comparison, the S&P BSE Sensex was up 5 per cent during the same period. The stock had hit a record high of Rs 2,317 on October 8, 2021. The company had raised Rs 100 crore through IPO by issuing shares at a price of Rs 400.

Nureca is a B2C company engaged in the business of home healthcare and wellness products. It enables its customers with tools to help them monitor chronic ailments and other diseases, to improve their lifestyle. Nureca is a digital-first company wherein it sells its products through online channel partners such as e-commerce players, distributors and retailers and its own website drtrust.in. The company has brands such as Dr Trust, Dr Physio and Trumom.

For first half – April to September – of the financial year 2022-23 (H1FY23), Nureca reported a consolidated net loss of Rs 7.0 crore and Ebitda loss of Rs 7.6 crore, against profit of Rs 4.16 crore and Rs 5.74 crore, respectively in H1FY22. Operating revenue was down 63 per cent to Rs 62.3 crore from Rs 166.4 crore in a year ago period.

The company said overall demand has seen a dip in H1’FY23 as compared to the same period last year, which had seen a huge surge in demand due to Covid-19. The gross margins in H1’FY23 were impacted due to lower demand, inflation in input cost, currency fluctuation as well as inflationary pressure in other non-core costs such as packaging, transport, etc.

Employee cost has increased as compared to the same quarter last year due to aggressive talent acquisition across the business functions and verticals majorly for app development and expansion of Offline distribution network, the company said.