The stock is Nureca, a healthcare and wellness products distributor company, which got listed at Rs 634.95 at a 58.74 per cent premium to its issue price of Rs 400 on February 25, 2021. The stock has surged to trade at Rs 951 on Friday, April 16.
Nureca is a leading player of products that are in high demand due to Coronavirus. The second wave of the pandemic has increased demand for products like oximeters, thermometers, BP monitors, nebulisers and multivitamins, say analysts and market watchers.
“Nureca was listed in February. It offers products in five major categories – chronic device products, orthopedic products, mother & child products, nutrition supplements and lifestyle products,” said Gaurav Garg, Head of Research at CapitalVia Global Research.
“The company has some very trusted brands like Dr Trust and Dr Physio. With the rise in Covid cases, demand for its products is likely to increase and that is going to benefit the company directly,” Garg said. “Also, the company is appropriately placed to offer lifestyle-related products, the demand for which is expected to increase exponentially in the coming years.”
Nureca’s Rs 100 crore IPO was sold between February 15 and 17, and received 166.65 times retail bids. The IPO was subscribed 39.93 times in all, with qualified institutional investors receiving 3.10 times bids, and that for non-institutional investors attracting 31.59 times subscription.
During financial year 2019-20, Nureca generated Rs 6.4 crore profit on Rs 99.48 crore revenue. The company clocked total revenue of Rs 122.97 crore and a net profit of Rs 36.18 crore for six months ended September 30, 2020. Analysts expect it to report some outstanding numbers for March quarter.
“Nureca is a leading B2C player in healthcare and wellness products. It is a digital first company and sells products through online channel partners,” said Yash Gupta Equity Research Associate, Angel Broking. “The second wave of Covid-19 in India should lead to an increase in demand, which is likely to be reflected in Q4FY21 numbers,” he said.
Analysts advise investors to hold their positions in spite of the latest bout of profit booking. “Further, the firm also sell its products through its website. We would advise investors to hold their position in Nureca despite the company having had a dream run this year after the IPO,” Gupta said.
