Poly Medicure has 10-12 per cent market share in Dialysis machines in India. Polymed will have 350 Dialysis machine installations in FY25. Shares of Poly Medicure Ltd climbed 12 per cent in Tuesday's trade post the company's December quarter results. Analysts largely vary on Poly Medicure's target price, even as they see the upcoming capacity addition to drive growth for the company ahead.
For ICICI Securities, Poly Medicure’s Q3 performance was lower than expected. The company reported a 21 per cent year-on-year (YoY) growth in revenue, driven equally across India and export businesses. Operating leverage drove an expansion of 160 basis points (bps) YoY in Ebitda margin at 28 per cent. India business logged steady growth in Q3 and the company management anticipated 20 per cent growth in this segment in FY25.
Poly Medicure maintained its revenue guidance of 22–24 per cent and guided for 100–150 bps improvement in margin in FY25. "We cut FY25–26E Ebitda by 1-2 per cent on lesser installation of dialysis machine in 9MFY25. The stock trades at an expensive valuation of 37 times FY26 EV/Ebitda. We upgrade Polymed to 'Reduce' but lower target price to Rs 2,000 from Rs 2,030," ICICI Securities said.
IIFL Securities forecast 20 per cent revenue growth, 23 per cent Ebitda growth and 23 per cent growth in EPS for Poly Medicure, compounded annually, over FY25-27. It maintained 'ADD' on the stock with a target price of Rs 2,650, valued at 52 times FY27 EPS. The stock rallied 11.66 per cent to hit a high of Rs 2,550.
IIFL expects Polymed’s exports business to grow at 19 per cent CAGR over FY25-27, driven by continued strong performance in European business (30-35 per cent) and scale-up in high-value markets like the US.
IIFL said US revenue has started kicking-in and the company is building on its current product portfolio, with the management expecting meaningful revenue contribution from the US by end-FY26.
Poly Medicure has 10-12 per cent market share in Dialysis machines market in India. Polymed will have 350 Dialysis machine installations in FY25, which is expected to double to 600-700 machines in FY26. The management expects Renal business revenue to increase from Rs 120-130 crore to Rs 400 crore by FY30.
"Renal growth will be driven by govt’s initiatives like higher reimbursement rates and allowing day-care dialysis centres. Also, private dialysis chains are targeting 25 per cent growth in their dialysis business," IIFL said.