Hemant Surgical Industries Limited IPO
i. Hemant Surgical manufacture, import, assemble and market a comprehensive portfolio of medical equipments and disposables.
ii. Their product offerings cover a wide spectrum of equipments and disposables required for
(i) Renal Care,
(ii) cardiovascular disease
(iii) respiratory disease,
(iv) Critical Care and Radiology and
(v) Surgical disposables.
iii. Their wide range of products include some of the indigenously manufactured products along with some other products that are imported from countries like: Japan, China France and Australia and are further processed in their assembly units.
iv. In addition they are also providing services for maintenance and running of dialysis centres.
i. We offer a diversified range of products.
ii. Existing well established reputation and customer relationships
iii. Quality Assurance
Manufacturing and Assembly Units of Hemant Surgical
1. Manufacturing Unit I: Located at Achad Industrial Estate, this unit has been operational since 1999. It manufactures dialysis solutions (liquid and powder), hot and cold sterilants, purified water, and sanitizers used in dialysis procedures.
2. Assembly Unit II: Situated in Atgaon, this unit is responsible for assembling various medical devices under the brand name “Aero Plus.” The products include nebulizers, oxygen concentrators, air mattresses, digital thermometers, pulse oximeters, ECG electrodes, and dialyzers. Additionally, it imports silicon Foley catheters from China, processes them, and sells them under the brand name “Safecath.” The unit also assembles new and refurbished dialysis machines imported from China, France, and Australia. It imports Meditapes from JMS Co. Ltd. in Japan.
3. Assembly Unit III: Located in Bhiwandi, this unit focuses on assembling products such as intravenous infusion sets, ECG machines, ultrasound machines, paramonitors, and ventilators.
Objects of the Hemant Surgical Industries Limited IPO:
Hemant Surgical Industries Limited IPO Details:
|Open Date:||May 24 2023|
|Close Date:||May 26 2023|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Built Issue IPO|
|Issue Size:||24.84 Cr.|
|Lot Size:||1600 Shares|
|Issue Price:||₹ 85-90 Per Equity Share|
|Listing At:||BSE SME|
|Listing Date:||Jun 05 2023|
Promoters And Management:
Financials of Hemant Surgical Industries Limited IPO:
|Equity Share Capital||₹200||₹200||₹768|
|Fixed Assets Block||₹1,189||₹1,157||₹1,315|
|Total Non-Current Assets||₹1,732||₹1,675||₹1,819|
|Cash and Cash Balance||₹151||₹582||₹845|
|Total Current Assets||₹2,062||₹3,432||₹4,046|
|COGS % of Sales||₹79%||₹79%||₹74%|
|Employee Benefit & Other Expenses||₹921||₹1,557||₹1,821|
|S&G Sales %||₹1%||₹15%||₹17%|
|Interest %of Sales||₹3%||₹2%||₹2%|
|Dep %of Sales||₹1%||₹1%||₹1%|
|Earnings Before Tax||₹152||₹611||₹1,005|
|EBT % Sales||₹3%||₹6%||₹9%|
|Effective Tax Rate||₹25%||₹25%||₹24%|
|No. of Equity Shares||₹20||₹20||₹76|
|Earning Per Share||₹5.73||₹23.07||₹9.96|
|EPS Growth %||₹0.00||₹3.03||-₹0.57|
|Dividend Per Share||₹0.00||₹0.00||₹0.00|
|Dividend Payout Ratio||₹0.00||₹0.00||₹0.00|
|Cash-Flow From Operations||-₹27||₹1,206||₹864|
|Cash-Flow from Investing||-₹232||-₹5.41||-₹159|
|Cash-Flow from Financing||₹51||-₹770||-₹441|
|Net Cash Flow||₹151||₹582||₹845|
Comparison With Peers:
|Name of the Company||Revenue(Cr)||Profit(Cr)||EPS||P/E||CMP||MCap|
|Hemant Surgical Industries Limited||109||7.65||7.32||12.28||90||93.96|
|Poly Medicure Ltd.||307||59||6.13||52.00||972||9,328|
Recommendation on Hemant Surgical Industries Limited IPO:
Review and Recommendation of Hemant Surgical SME IPO by IZ team is 6/10 1. Hemant Surgical manufacture, import, assemble and market a comprehensive portfolio of medical equipments and disposables.2. Their product offerings cover a wide spectrum of equipments and disposables required for Renal Care, Cardiovascular disease, Respiratory disease, Critical Care and Radiology and Surgical disposables. 3. Their wide range of products include some of the indigenously manufactured products along with some other products that are imported from countries like: Japan, China France and Australia and are further processed in their assembly units. 4. In Fy23, 33% of the revenue comes from single product i.e. Mediatapes. 5. They have one manufacturing unit located at Achhad Industrial Estate and two assembly units located at Atgaon, Japan and Bhiwandi, India. Unit I at Achad Industrial Estate manufactures dialysis solutions, sterilants, purified water, and sanitizers. Unit II in Atgaon assembles medical devices under the brand name "Aero Plus" and processes imported catheters. Unit III in Bhiwandi assembles various medical equipment including infusion sets, ECG machines, ultrasound machines, and ventilators 6. The company has a significant dependency on imported products, raw materials, and components for its manufacturing and assembly line process. In recent years, import purchases accounted for a high percentage of total purchases, ranging from 69.10% in 2021 to 76.28% in Fiscal 2023. This heavy reliance on imports exposes the company to risks associated with international trade, such as changes in import regulations, supply chain disruptions, and currency fluctuations. It is crucial for the company to closely monitor and manage these risks to ensure the stability and continuity of its operations. 7. Revenue has grown from 60 Cr in Fy21 to 110 Crores in Fy23. It is growing at CAGR of 35% in the last 3 years. 8. Gross Margin in the business is between 21%-26%, which is decent enough. 9. EBITDA margins have grown considerably from 5% in Fy21 to 10% in Fy23. 10. PAT has increased from ~1.14 Cr in Fy21 to 7.65 Cr in Fy23. 11. Debt on books is ~7 Crores which is quite manageable. 12. Asking P/E is 12x based on Fy23 numbers. 13. ROE considering post-IPO net-worth stands at 14% based on Fy23 profit. Which is decent enough.