Multibagger Alert: This medical devices company has given investors a return of 111% in the past year!

On a YTD basis, the stock has given a return of 104.24%.

Indian-based manufacturer and exporter of medical devices, Poly Medicure Limited has given investors stellar returns of 111.79% over the last year. The share price stood at Rs 489.20 on November 27, 2020, and since then, the stock has more than doubled investor wealth.

Headquartered in New Delhi, Poly Medicure engages in the provision and sales of medical devices. Its products are used in infusion therapy, central venous access catheters, blood management, urology, dialysis, diagnostics, and paediatrics.

In Q2FY22, the company saw revenue growth of 11.89% to Rs 223.37 crore from Rs 199.63 crore in the same quarter for the previous fiscal year. PBIDT stood at Rs 62.93 crore, up by 10.44% YoY and the corresponding margin contracted to 28.26% from 29.93% in Q2FY21. This was due to a change in product mix (higher domestic contribution). PAT stood at Rs 37.25 crore, up by 7.72% from Rs 34.58 crore last year.

Poly Medicure has grown at a healthy 15% and 25% CAGR in revenue and PAT respectively from FY17 to FY21 with margins expanding by 700 bps to 27.26% in FY21. Management has guided for revenue growth of 17-18%, higher than the industry which is estimated to grow at 11-12%. The guidance by the management, however, does not include contributions from new launches.

The company plans to launch products in the Oncology segment like Huber needles & AD Needles for vaccination. Management sees increased demand for syringes used for vaccines and diagnostic kits and believes that higher volumes in these products will compensate for their low value thereby sustaining EBITDA margins.

Meanwhile, the company remains upbeat on the opportunities in the renal segment. In FY21, the renal segment contributed Rs 36 crore or approximately 5% of the total sales. Management has guided this to grow at 7-8% over the next 5 years. It also plans to apply for the PLI 2 scheme under the diagnostic products scheme.

At 10.30 am on Wednesday, the stock is trading at Rs 1028.20, down by 0.76% or Rs 7.90 per share on BSE. The 52-week high of the scrip is recorded at Rs 1,163 and the 52-week low at Rs 449.20 on the BSE.