Deccan Health Care Limited IPO

Apply 0
Avoid 0

Don't Miss It! Mark Your Calender Now:


(i) Deccan Healthcare has a diversified product portfolio with product basket consisting of more than 1,500 products used for various purposes such as hair care, skin care, heart care, immunity building, etc.

(ii) The company supplies products in various forms such as tablets, capsules, gel, liquids, ointments, powder, pastes, etc. It mainly develops and markets differentiated healthcare products specializing in nutraceutical and cosmeceutical products, which it commercializes through different revenue channels.

(iii) As on the date of the Draft Red Herring Prospectus, it has more than 140 distributors and around 5,000 marketing agents. To expand its reach, it has also entered into two distributorship agreements with foreign distributors situated in Kenya and Tanzania respectively.

(iv) In 2010, it set up its manufacturing facility at SIDCUL Pantnagar Rudrapur, Uttarakhand. The facility complies with GMP and WHO GMP for its health/diet supplements and ayurvedic products. It has also obtained FSSAI license for its products. The company is also an ISO 9001:2008 certified for Quality Management System for manufacturing and supply of Nutraceutical & Pharmaceutical Products. It Spread over 3,536 Sq. mts., the manufacturing facility is equipped with the requisite plant and machinery including Effluent Treatment Plant and other resources required for a manufacturing process.

(v) The Company sells products via Online mode and Offline Mode. 72% of the sales come from Offline and 28% comes from Online. For online they have an e-commerce platform. In FY18, their sales were close to 39 Cr, out of which 29 Cr comes from Offline and 10.50 Cr from Online. The company is targeting e-commerce revenues of Rs. 100 crore in 5 years from Rs. 10.50 crore in FY18.

 

 

Objects of the Deccan Health Care Limited IPO:

Objective of

Deccan Health Care Limited IPO

are: 1. Repayment/Prepayment of certain Secured Borrowings availed by the Company. 2. Purchase of Plant & Machinery and related civil work. 3. General Corporate Purposes.

Deccan Health Care Limited IPO Details:

Open Date: Dec 18 2018
Close Date: Dec 20 2018
Total Shares: 4,212,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Build Issue IPO
Issue Size: 42.12 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 95-100 Per Equity Share
Listing At: BSE SME
Listing Date: Dec 28 2018

Promoters And Management:

Promoters of Deccan Health Care Limited Company are: Mr. Minto Purshotam Gupta Mr. Hitesh Patel

Financials of Deccan Health Care Limited IPO:

Under Analysis

Comparison With Peers:

 
Company Mcap(Cr) Revenue(Cr) PAT(cr) OPM NPM EPS ROE ROCE Adj.P/E
Deccan 157.134 39.76 12.67 38% 31% 8.06(post issue) 34% 30.20% 13.03
Zydus wellness 5101 503 134 30% 26% 34 21.02% 22% 35.5
Note: The Financials of FY18 has been used for peer comparison. Source:DRHP and Moneycontrol

Recommendation on Deccan Health Care Limited IPO:

Review and Recommendation of Deccan Health Care Limited IPO from our side is: Under Analysis

Lead Manager of Deccan Health Care Limited IPO:

  1. Pantomath Capital Advisors Private Limited

Registrar of Deccan Health Care Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Deccan Healthcare Limited 247, 2nd floor Dwarakapuri Colony, Punjagutta Hyderabad – 500082, Telangana Phone: 91 040 4014 4508 Email: investors@deccanhealthcare.co.in Website: www.deccanhealthcare.co.in

Discussion on Deccan Health Care Limited IPO:

    The Company has issued 5,68,966 preferential shares on Feb 2018 at Rs. 29 to the following:

    A> Kent R.O= 5,00,000

    B> Value worth Capital Management Private Limited = 25000

    C> Chandra Prakash Manocha= 43966

    It is a stock only for long term investors. Most of healthcare companies never give return on listing. Let’s see how it performs.however listing gain or much surge on listing is not expected.

    Last three years Average EPS is 8.09.
    So P/E based on this would be in the range of 11.74 and 12.36.

    It is a Fresh Issue of 22,12,000 and OFS of 20,00,000 by Promoters Mr. Hitesh Patel and Meenakshi Gupta.
    As per DRHP , the company has issued close to 53,25,214 shares to Hitesh Patel at Rs. 0.11. So Mr. Hitesh Patel will earn close to 14 Cr from this IPO.

    1st profitable E-Commerce Nutraceutical healthcare co in India in past 3 years. 2017-18, sales 39.76cr and Profit 12.68cr, EPS 9.75, IPO Prize 100 it’s 10.PE Multiple. 42Cr IPO.

    Well known investors invested in pre IPO , Kent RO, Value worth, Amar Ambani etc… …VERY GOOD CO FOR INVESTMENT.

    Deccan – Post allotment, shares will be listed on BSE SME. It is surprising to note that this company filed its two DRHPs with NSE SME for listing, but now when it is finally going public; it has opted for BSE SME listing (before recent update came).

    Mahesh Gupta of Kent RO has taken strategic stake in the company…

    Hence Deccan Health has been postponed for formalities.

    Once shares are alotted, it will open with updated results.