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QMS Medical Allied Services Limited IPO

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About :

QMS Medical Allied Services Limited was founded in 2017 and specializes in the marketing, distribution, and provision of medical education services. Products from the company are marketed under the “QDevices” brand, and they also oversee distribution for other brands including 3M, Heine, Rossmax, etc.

The business sells medical supplies such as stethoscopes, glucose monitoring kits and strips, dental items, personal protective equipment (PPE) kits, infection control products, and blood pressure monitors.

In order to improve people’s lives through ongoing skill development, the company offers a variety of medical courses, including a PG Diploma in Cardiology, a Masterclass in Diabetes & Renal Management, cardiology and cardiac rehabilitation, etc.

The business uses the website https://qmsmas.com to promote its products offline and online and assist in their distribution across India. In order to source medical supplies from the surgical supply store, the company’s eCommerce platform, known as Qmeds (https://qmsmeds.com), offers online service to medical equipment dealers, distributors, surgeons, and clinicians.

Strengths :

  1. Promoter and management team have extensive market knowledge and a proven track record of success.
  1. Existing, solid ties with clients and goodwill.
  1. Competitive items and a business plan with few assets.
  1. Quality control.

Details on IPO :

IPO for QMS Medical Allied begins on September 27, 2022, and ends on September 30, 2022. From September 27, 2022, at 10:00 A.M., through September 30, 2022, at 5:00 P.M., is the QMS Medical Allied IPO bid date. On the day of the issue’s conclusion, at 5 PM, UPI Mandate confirmation must be received.

1000 shares make up the QMS Medical Allied IPO lot size. An individual retail investor may submit an application for up to 1 lot (1000 shares, or Rs. 121,000).

Objective of the Issue :

1. Paying for extra Working capital needs

2. General Business Objectives

Preface :

In January 2021, this business initially submitted a draft prospectus through Aryaman Financial Services Ltd. for an offering of 1224000 equity shares (including OFS for 600000 shares). Later, through First Overseas, it submitted a fresh draft prospectus for 4700000 equity shares (including OFS for 1900000 shares). This business is entirely reliant on contracts with third parties, which is quite dangerous. This company’s margins are likewise suspicious. Future viability of such performance is a serious problem.

Financial Performance : 

In terms of financial performance, QMASL reported turnover/net profit for the last three fiscal years of Rs. 72.78 crore/Rs. 6.35 crore (FY20), Rs. 122.09 crore/Rs. 10.92 crore (FY21), and Rs. 147.75 crore/Rs. 10.71 crore (FY22). Although its top line showed growth, its bottom line experienced margin pressure.

QMASL has generated average EPS of Rs. 6.68 and average RoNW of 46.42% during the past three fiscal years. According to its NAV of Rs. 20.62 as of March 31, 2022, and according to its post-IPO NAV of Rs. 36.36 per share, the issue is valued at a P/BV of 5.87 and 3.33, respectively.

Dividend Policy :

In accordance with the disclosed periods in the offer document, the company has neither declared or paid any dividends. Following the IPO, it will implement a conservative dividend policy based on its financial performance and prospects for the future.

Conclusion :

The business provides medical and healthcare equipment to third parties. This market is quite competitive and dispersed. Future margin sustainability is a cause for concern. The issue is fully priced based on earnings for FY22. With the shift of the Lead Manager, the IPO size has grown. Given all of them, avoiding this problem is not harmful.

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