AMKAY PRODUCTS IPO Review

Amkay Products is a strong player in Indian Medical Device Industry that manufactures, assembles & markets a comprehensive portfolio of medical devices, disposables, and other Healthcare Products like Face Mask, Alcohol Swabs, Lancet Needles, Nebulizers, Pulse Oximeter, surgeon caps, etc. and the size of the Indian medical devices market is estimated at Rs. 90,000 crores (US$ 11 billion) in 2022 and is expected to grow to US$ 50 billion by 2030 with a CAGR of 16.4 %.

The company is backed by strong promoters and a Board of Directors who has experience of over 20 years in the industry. The recent financial performance of the company has shown negative growth on the top line and bottom line in the last 3 years. Revenue has fallen to ₹ 28 crore from ₹ 40 crore and Profit after tax also declined from ₹ 3 crore to ₹1.5 crores.

Amkay Products IPO Issue price is ₹ 55 per share and Post Issue EPS of ₹ 2.49 which makes the valuation fully priced at a Post PE ratio of 22.08x times against an Industry PE Ratio of 20x times and nothing much left on the table for IPO investors for Big Listing Gains and not enough margin of safety for long term Investors.