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Deep-Dive Into Indian Pharmacy Sector From Medplus IPO Prospectus: ICICI Securities

Deep-Dive Into Indian Pharmacy Sector From Medplus IPO Prospectus: ICICI Securities

<div class="paragraphs"><p>Pills in the hand of a worker in the quality control laboratory. (Photographer: Alex Kraus/Bloomberg)</p></div>
Pills in the hand of a worker in the quality control laboratory. (Photographer: Alex Kraus/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

The key insights for the Indian pharmacy sector from our analysis of Medplus Healthcare Services Ltd. prospectus are-

  1. Indian retail pharmacy is expected to grow at 10% compound annual growth rate over FY20-FY25E with share of organised players increasing from 10% to 20% over this period, implying CAGR of ~25% for organised market,

  2. modern pharmacy and hospitals make higher margin of 20-25% in supply chain process,

  3. focus on offering over-the-counter and private label fast moving consumer goods type products to improve scale and profitability, and

  4. emergence of omni-channel (offline plus online) presence in organised retail pharmacy.

Click on the attachment to read the full report:

ICICI Securities Healthcare Takeaways from Medplus DRHP.pdf

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