Amkay Products manufactures, assembles & markets a comprehensive portfolio of medical devices, disposables and other Healthcare Products. Amkay Products IPO is a book built issue of Rs 12.61 crores. The issue is entirely a fresh issue of 22.92 lakh shares.

About Amkay Products:

• Company started its operations in year 2008 with manufacturing and supply of one product in a manufacturing unit taken on rent at Vasai in Mumbai.
• Amkay Products manufactures, assembles & markets 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.
• The 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, They are manufacturing more than 20 products along with Branding & trading of more than 10 products.
• In addition, they are also engaged in branding and marketing of some of the products like Diapers, Plastic Gloves, Suction Machines etc.
• The company has two manufacturing unit situated in Thane, Maharashtra and a Wearhouse situated in Thane Maharastra.
• The Promoters of the company are Kashyap Pravin Mody and Himanshu Kantilal Batavia

Financials: Amkay Products IPO

Anchors: Amkay Products IPO

Amkay Products IPO: Salient Points

• The medical devices sector in India comprises large multinationals, small and midsized companies. The size of the Indian medical devices market is estimated at Rs. 90,000 Crore (US$ 11 billion) in 2022 and is expected to grow to US$ 50 billion by 2030 with a CAGR of 16.4 %.
• The Net Proceeds are proposed to be utilized in the manner set forth below:

• At the end of F.Y 2023, they are getting products like Diapers, Surgical Blade, Ambu Bag, Fatal Doppler, Breast Pump, Massager etc. manufactured from third parties. . In the period ending December 31, 2023they generated revenue of Rs. 437.71 Lakhs, from branding and trading of products manufactured by third parties.
• Product-wise revenue over last three years:

• Their key customers majorly include (i) Dealers; (ii) hospitals and nursing homes and (iii) healthcare centres
• They witnessed significant turnover increase in financial year 2020-21 due to heightened demand for surgical disposables amid the COVID-19 pandemic. Subsequently, in F.Y 2021-22 and F.Y 2022-23, when the pandemic situation started normalizing, their revenue from operations declined in comparison to FY 2020-21.
• Peers

• Compared with its peers, it has a relatively smaller base and does not seem to enjoys any notable edge in its performance which seems in-line.
• They have started selling products online also through e-commerce platform such as Flipkart, Amazon, Medika Bazar, Netmed etc but this forms a very small portion of the sales.
• Revenue is almost entirely from domestic sales.
• Peer Hemant surgicals listed at very good premiums but performance has not lived up to high expectations there after.
• Amkay Products IPO is coming at a PE ratio of 31.5x (FY23 Earnings) and 16.6 x (fy24 annualized earnings)
• I intend to apply in Amkay Products IPO subject to availability of funds. Amkay Products IPO could see very high subscriptions due to small size of the issue. Overall I have an slightly positive view on the IPO.
• GMP as reported on social media has been Rs. 45.
• Hem securities is the Lead Manager to the issue. The IPOs lead managed by them have given a good return to the investors. These include names like Aspire & Innovative Advertising Limited, Blue Pebble Limited, Enfuse Solutions, Sona Machinery Limited, Harshdeep Hortico Limited, Megatherm Induction Limited, New Swan Multitech Limited, Shri Balaji Valve Components Limited, Shanti Spintex, SJ Logistics,Siyaram Recycling Industries Limited, Deepak Chemtex Limited, Paragon Fine And Specialty Chemicals, E Factor Experiences Limited, Arabian Petroleum Limited, ,Saakshi Medtech and Panels Limited, Kahan Packaging Limited, Asarfi Hospital Limited, Kaka Industries, Green Chef, Vasa Denticity, Chaman Mettalics, Hemant Surgicals, Labelkraft, Concord Control Systems Limited, Earthstahl & Alloys Limited, Silicon Rental Solutions Limited, Krishna Defence and Allied Industries, Prevest Denpro Limited etc.
• SME IPO are much more risky and volatile than mainboard IPOs.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.