Nureca Share Price: Investors are extremely happy with Nureca IPO listing gains

Nureca share price today is Rs 699.95, up Rs 33.3 or 5%. The share price of Nureca closed at a day's high. Many analysts on the street are extremely bullish on Nureca after the strong Management commentary and vision they have for the business. Brokerages report will kick in after meeting the management of Nureca in a few days highlighting the business prospects and the upgrades.

Zee Business Managing Editor Anil Singhvi spoke to Founder and CEO of the Nureca Aryan Goyal where he said that they have a contract manufacturing model of business. So, it may happen that suppliers may think of selling their products on their own. In that case, Nureca is also planning to foray into the manufacturing zone as we already have a small manufacturing unit though it's very small. However, to start with, it's enough to begin manufacturing on our own.

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He said that Nureca has been introducing new products and technology that have been keeping its business volume at the same levels. Last year it was Oximeter and Thermometer while next year it can be any other product or technology

Nureca is a B2C company engaged in the business of home healthcare and wellness products which offers quality, durability, functionality, usability and innovative designs. Post COVID-19 the health awareness is surmounting and devices like Pulse Oximeters, Thermometers, Nebulizers, Self-monitoring glucose Devices, Humidifier and Steamers, wheelchairs, walkers, lumbar, breast pumps, bottle sterilizers, bottle warmers, car seats, baby carrycots, Nutrition supplements, Lifestyle products etc. are catching attention.

According to WHO, markets for such devices are expected to grow at a CAGR of 10% + and India is the major market with around 84%+ market share. NURECA is marketing its products in India on its own website drtrust.in and also using third-party e-commerce platforms, distributors and retailers. According to management, since the onset of the COVID-19 pandemic in March 2020, the company has responded swiftly by implementing various processes to ensure continuous and seamless operations that have resulted in the boosted top and bottom lines. NURECA is selling its products under the brand names of "Dr.Trust", "Dr. Physio" and "TRUMOM".

On the financial performance front, for the last three fiscals, on a consolidated basis, NURECA has posted total income/net profits of Rs. 20.07 cr. / Rs. 3.11 cr. (FY18), Rs. 61.98 cr. / Rs. 6.27 cr. (FY19) and Rs. 99.49 cr. / Rs. 6.40 cr. (FY20). For the first half ended on September 30, 2020, it has earned a net profit of Rs. 36.18 cr. on a turnover of Rs. 122.97 cr. According to management, the company has reaped benefits from the ongoing pandemic and such performance is likely in the near term with changing lifestyle and rising awareness for hygiene and health related products.

For the last three fiscals, Nureca has reported an average EPS of Rs. 8.28 and an average RoNW of 77.69%. The issue is priced at a P/BV of 5.42 (at the upper price band) based on its NAV of Rs. 73.78 as on September 30, 2020, and at a P/BV of 2.55 based on its post IPO NAV of Rs. 156.62 (at the upper price band).