About the Company:
Amkay Products Ltd manufacture, assemble & market a comprehensive portfolio of medical devices, disposables and other Healthcare Products like Face Mask, Alcohol Swabs, Lancet Needles, Nebulizer, Pulse Oximeter, surgeon cap etc. used by healthcare centers, hospitals/clinics, nursing homes etc. widely spread across India.
In addition, Company is also engaged in branding and marketing of some of the products like Diapers, Plastic Gloves, Suction Machines etc.
Company’s product portfolio comprises of more than 30 product including Respiratory Disease Related Medical Devices, Surgical Disposables, Home Healthcare Products and Other Healthcare Products. Presently, company is manufacturing more than 20 products along with Branding & trading of more than 10 products.
In the period ending Fiscal 2023, Company’s revenue from manufacturing operations was Rs. 22.24 crores which accounts for 79.84%, of total revenue from operation. while company’s revenue from branding & trading operations was Rs. 5.61 crores, which accounts for 20.16%, of total revenue from operation respectively.
Company’s Promoters:
Company was founded in the year 2007 by one of our Promoters, Kashyap Pravin Mody, who has more than 20 years of experience in the associated industry. Later, in 2011, Hemanshu Kantilal Batavia joined the company as Director who has an experience of more than 12 years in the said industry.
Company’s promoters are involved in the critical aspects of the business, including expansion, process and plant, finance, sales and marketing. Their understanding of the consumer difficulty, intuitive entrepreneurship and involvement in key aspects of the business has helped accelerate and drive our profitable growth.
Company believes that the sector-specific experience and expertise of promoters has contributed significantly in the growth of the Company.
Company’s Product Portfolio:
- Surgical Disposables.
- Home Healthcare Products.
- Respiratory Disease Related Medical Devices.
- Other Healthcare Products.
Company’s Category wise Revenue Breakup: (in Lakhs)
Company’s History:
Amkay Products Ltd started its operations in year 2008 with manufacturing and supply of one product in a manufacturing unit taken on rent at Vasai in Mumbai, measuring 980 sq. feet.
Gradually, more products were added to the portfolio & for further product expansion, over the period, company shifted to bigger manufacturing units from where we entered into branding & trading segment also along with manufacturing.
Later in year 2012, Company purchased manufacturing unit at Acchad Industrial Area, Thane, measuring around 20,000 square feet, where currently we are manufacturing & supplying products like Face Mask, Alcohol Swab, Nebulizer Mask, Surgeon/Bouffant Cap, Steel/Plastic Lancet, Air Bed, Apron, Digital Thermometer, Shoe Cover, BP Monitor etc.
In 2014, company took one warehouse on rent at Acchad Industrial Area, for storage of finished Goods and then in 2016, company purchased another manufacturing unit at Acchad Industrial Area, Thane, measuring around 6000 square feet, where currently we are manufacturing & supplying Bio Bags.
Company’s Manufacturing Facilities:
Company’s manufacturing facilities is equipped with requisite infrastructure including machineries, testing laboratory other handling equipment to facilitate smooth manufacturing process with total area of approx. 26000 sq. ft.
Company’s Revenue from Domestic & Exports:
Company’s products are spread across India and have generated around 98.94 % of our total revenue from domestic sales in period ending fiscal 2023. Further, the company has also exported small portion of its products to the countries like Bhutan, Nepal & Qatar and generated around 1.06% of our total revenue from sales in period ending fiscal 2023 respectively.
Company’s Revenue from top ten geographies in India.
Competition in the Business:
Company faces competition from organized and unorganized players in the healthcare industry which have a presence across multiple regions in India.
While there are companies which manufacture similar products, some of the listed peers included include Hemant Surgical Industries Ltd., QMS Medical Allied Services Limited etc.
Management Team:
- Mr. Kashyap Pravin Mody (Designation: Chairman & Managing Director)
- Mr. Hemanshu Kantilal Batavia (Designation: Whole Time Director & CFO)
Objectives of the Issue:
Fresh Issue: (Rs.12.60 cr)
- Funding Capital Expenditure towards installation of additional Machinery.
- To meet working capital requirements.
- General Corporate Purpose.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Funding Capital Expenditure towards installation of additional Machinery | 0.50 cr |
| To meet working capital requirements | 8.0 cr |
Positives for the Company:
Company has Strong Portfolio and Diverse Range of Products across Consumer Preferences.
- Company has diverse product portfolio across various segments of medical device and disposables catering to respiratory disease, home healthcare products and surgical disposables to fulfil customer’s requirement.
- Company deals in a wide range of products, which enables us to cater widespread customer base across India and also expand our reach in international locations like Bhutan, Nepal & Qatar.
- Company believes that we have necessary resources, experience and network to launch additional products in future. Company provides advanced medical devices with latest technology.
- With an operating history of more than a decade, Company is primarily known for its wide range of quality products at a competitive price.
Extensive network of dealers covering major parts of India.
- Company believes that the growth in the business operations have been made possible by wide dealer network covering major parts of India.
- Company sells the products through a network spread across India and works with various dealers depending on their geographical reach, market knowledge, product and customer awareness as well as understanding of Healthcare Industry.
- Further, from last year, Company had started selling the products online also through e-commerce platform such as Flipkart, Amazon,Medika Bazar, Netmed etc. This has further increased the presence of our products to more customers.
- In the period ending December 31, 2023 and F.Y. 2022-23, Company has made total sales of Rs. 1.86 lakhs & Rs. 3.99 Lakhs respectively, through ecommerce platform which accounts for 0.08% and 0.14% of total revenue of the said period.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 31st Dec 23 |
|---|---|---|---|---|
| Revenue | 40.71 | 36.79 | 28.25 | 23.85 |
| Net Profit | 3.12 | 1.46 | 1.51 | 2.15 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Amkay Products Ltd | 10 | 2.37 | 23.20 | 19.57% | 12.13 |
| Hemant Surgical Industries Ltd | 10 | 10.28 | 14.59 | 32.42% | 30.73 |
| QMS Medical Allied Services Ltd |
10 | 3.90 | 26.53 | 9.06% | 39.44 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 30th April 2024 |
| Issue Closes on | 3rd May 2024 |
| Issue Price | Rs.52 – 55 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 Shares |
| Minimum Investment | Rs. 1,10,000 |
| Issue Constitutes | 26.47 % |
| Issue Size | Rs.12.60 cr |
| Market Cap | Rs. 47.60 cr |
| Listing at | BSE SME |
| Equity Shares Offered (Fresh) | 22,92,000 (Rs.12.60 cr) |
| Equity Shares Prior to the Issue | 63,63,640 |
| Equity Shares after the Issue | 86,55,640 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 6th May 2024 |
| Initiation of Refunds | on or Before 7th May 2024 |
| Credit of Equity Shares: | on or Before 7th May 2024 |
| Listing Date: | on or Before 8th May 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 2.37 | 23.20 | 19.57% | 12.13 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Amkay Products Ltd stands as a cornerstone in the medical industry, renowned for its meticulous craftsmanship in manufacturing, assembling, and marketing an extensive array of essential medical devices and healthcare products. From the indispensable Face Masks to the precision-engineered Nebulizers, and from the reliable Alcohol Swabs to the indispensable Pulse Oximeters, the company’s offerings cater to the diverse needs of healthcare centers, hospitals, clinics, and nursing homes throughout India.
With a staggering 98.94% of its revenue sourced from domestic sales, Amkay Products Ltd has firmly established itself as a trusted provider within the Indian healthcare landscape. Its robust portfolio encompasses products aligned with consumer preferences, ensuring relevance and efficacy in diverse medical settings. Now, as Amkay Products Ltd prepares for its Initial Public Offering (IPO), investors are presented with a compelling opportunity to partake in the company’s journey of growth and innovation. With a proven track record, strong market presence, and a commitment to excellence, Amkay Products Ltd beckons investors to join hands in shaping the future of healthcare delivery in India. |
| Company Contact Info: |
|---|
| Amkay Products Ltd Bunglow No. 68, Rashmi Park, CHS Ltd., Dhumal Nagar, Waliv Road, Vasai, Thane 401208, Maharashtra, India. Tel No: +91-9152094440 E-mail: cs@amkayproducts.com Website: www.amkayproducts.com |
| Registrar to the Issue: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East) Mumbai – 400093, Maharashtra, India. Telephone: +91 22 6263 8200; Email: ipo@bigshareonline.com; Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| HEM SECURITIES LIMITED Address: 904, A Wing, Naman Midtown, Senapati Bapat Marg, Elphinstone Road, Lower Parel, Mumbai-400013, Maharashtra, India. Tel. No.: +91- 22- 4906 0000; Email: ib@hemsecurities.com Website: www.hemsecurities.com |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment |
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