This Kacholia-owned medical equipment stock has rallied 113% in 3 months

Ace investor Ashish Kacholia held 1.70 million equity shares, or a 1.77 per cent stake, in Poly Medicure at the end of March quarter

Shares of Poly Medicure hit a new high of Rs 1,083.90 after rallying 9 per cent on the BSE in intra-day trade on Friday. The stock of the medical equipment company, which has zoomed 22 per cent in two trading days, surpassed its previous high of Rs 1,044 touched on Thursday. In the past three months, it has soared 113 per cent as compared to a 1.7 per cent decline in the S&P BSE Sensex.

Meanwhile, ace investor Ashish Kacholia held 1.70 million equity shares or a 1.77 per cent stake in Poly Medicure at the end of the March 2021 quarter, as per the latest shareholding data. Kacholia had sold 50,000 equity shares during the January-March quarter. He held 1.75 million shares in the company as of December 2020 quarter, data shows.

In February, Poly Medicure had raised Rs 400 crore by allotting 7.63 million equity shares of the company to eligible qualified institutional buyers (QIB) at the issue price of Rs 524 per share. The company said it proposed to utilise the net proceeds for funding suitable organic and inorganic growth opportunities, ongoing capital expenditure, other long-term and short-term requirements, pre-payment and/or repayment of outstanding borrowings.

Poly Medicure is among the top five companies in the medical devices industry in India, in terms of operating income and profitability margin performance, in fiscal 2019 (Source: CRISIL Report). The company manufactures and supply, in India and internationally, a diverse portfolio of medical devices in the product verticals of infusion therapy, oncology, anaesthesia and respiratory care, urology, gastroenterology, blood management and blood collection, surgery and wound drainage, dialysis, central venous access catheters, veterinary medical devices, and others. As of December 31, 2020, the company had over 130 stock keeping units (SKUs) of disposable medical devices.

Indian firms engaged in the medical device sector are typically small and medium-scale enterprises, manufacturing products such as disposable and medical supplies and competing in low-priced, high-volume segments. Indian players like Hindustan Syringes and Poly Medicure hold a higher share of the consumables market than MNCs. Due to Covid-19, related medical requirements, manufacturing and demand for consumables and disposables have increased significantly, the company had said in its QIP placement document.