Below are Views on Perspective on Nureca IPO Allotment By Hemang Jani, Head- Equity Strategy, B&D, Motilal Oswal Financial Services
Nureca Ltd, a Home healthcare and wellness product company, listed today on the exchanges with a 58.7% premium against its issue price of Rs400/share. The B2C company had raised Rs100 crore through public issue which was subscribed 40 times. Nureca has a well-diversified product portfolio including Chronic Device Products, Orthopedic products, Mother and Child products, Nutrition Supplements, and Lifestyle products to cater to the home healthcare market which is expected to grow at 11% CAGR by 2025. Nureca is considered as a first digital company wherein it sell its products through online channel partners and through its own website drtrust.in. It is known for its product innovation and some of its known brands are Dr Trust, Dr Physio and Trumom. It delivered robust performance over FY18-20 with Revenue PAT CAGR of 123%/43%. In 1HFY21, Revenue/PAT grew 1.2x/6x compared to FY20 financials. Given the huge opportunity in Home Healthcare segment, its asset light business model, competitive and well-diversified products, Nureca is likely to sustain its growth momentum in subsequent years. It currently trades at P/E of 8.9x FY21E annualized EPS which is very attractive"
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