I did some further digging and found below information in the FY23 Annual report of the company. Company had posted 60 crores of profit in FY23, 50% of it came from the subsidiary ‘Woodpecker Distilleries & Breweries Pvt Ltd’ (shown below). 21% of this subsidiary has now been taken by the promoter for meagre 30 crores. It means they have valued the subsidiary at PE of less than 5.

If this is not day light stealing then I don’t know what is. As per them, the whole company should be valued at 280 crores and not 2000 crores (current market cap). I still believe that the promoters should get some discount while raising such capital, but this is not looking good. The shareholders have suddenly lost 10% of annual earnings (20% of profit generated by the subsidiary) in return of 1.5% equity value (30 crores for a market cap of 2000 crores).

Money Control also concurs the same: Profits – ₹1603cr FY2025

Disc: Holding

Indian Products Can Beat Western Products!

I suspect the contribution has been negligible. I also suspect there will be some very positive news & declarations by them on Monday.

I have a feeling they may have secured some government orders, namely from the army.

Created a 6% position. Measured risk. Dreaming.

Poly Medicure Limited Q3 and 9 months FY-24 Earnings Call February 02, 2024

• We see that we should be able to grow 20% over also in the next fiscal year

• In the current 9 months, we have seen that domestic business has grown by around 18%, and export business has grown to close to 24%

• We should grow by over 50% for the next year because we now see the traction. We are already investing in new capacity build-up, which will help us reach this new revenue number of INR140 crores to INR145 crores for the next fiscal year.

• Earlier, the machines are around 35% made in India content. And now the new machines, the next generation of machines are around 50% made of made-in-India content. This is a big milestone because this will allow us to now participate as a top-tier supplier and a lot of government contracts. After all, there’s a preference for companies with 50% local content.

• The Italian subsidiary has done well. And Italian subsidiary has grown the business by around 50%. And also the company has generated approximately a PAT of around INR7 crores over 9 months. In the same period last year, it had a loss of around INR65 lakhs. So I think there’s a big turnaround with an increase in revenue and also the profitability. And I think we will continue with the same momentum. And next year also, I think we have plans to grow the company by around 35% to 40%

• We have launched our critical care division in India. There is a soft launch already done. Also, we’ll be doing a soft launch of our cardiology business this month

• We have done close to around INR185 crores of capex for the first 9 months. And key plants are already ready, and they have started functioning, and we’ll be in a ramp-up phase now. The fourth tranche will be ready by early next year, early next year means the financial year, maybe in April, or May.

• We have grown again 40% in quarter 3 in export in Europe business, which is, by far, still the biggest market almost 40% to 42% of revenue comes from Europe for exports. So if you are splitting the revenue again, we still maintain the same split of 1/3 India, 1/3 Europe, and 1/3 rest of the world.

• In the last 9 months, we have been granted 19 additional patents. The patent portfolio is now over 375 patents

• In 2024, we plan to launch around 8 to 9 new products. Already the work has been going on for these products