Medico Remedies Ltd

Medico Remedies demonstrates inconsistent financial performance. While the compounded profit growth shows a positive trend, sales growth is not consistent. The recent TTM sales growth is at 4%, while profit growth is at 22%. Quarterly sales have fluctuated, with YOY Sales Growth % varying from -23.37% to 47.62%. Operating Profit Margin (OPM) also shows variability, ranging from -0.54% to 16.13% quarterly. This inconsistency suggests potential challenges in maintaining stable revenue and profitability.

Medico Remedies shows good capital efficiency and returns. The Return on Capital Employed (ROCE) is consistently above 20% in recent years (21% currently). Return on Equity (ROE) is also strong at 17.23%. These metrics indicate that the company is effectively utilizing its capital and generating good returns for shareholders. However, the Cash Conversion Cycle has increased to 111 days as of March 2025, indicating potential inefficiencies in working capital management.

Medico Remedies exhibits a mixed financial health profile. The Debt/Equity ratio can be derived from the Balance Sheet data. As of March 2025, the company has borrowings of ₹15 Cr against an equity capital of ₹17 Cr and reserves of ₹46 Cr. The company consistently shares profits, as indicated by its dividend payout history. However, in recent years, the dividend payout % has been 0%.

The shareholding pattern of Medico Remedies indicates shifts in ownership structure. Promoter holding has decreased from 73.34% to 63.79% as of March 2025. FII holding is minimal at 0.11% as of March 2025, and DII holding is also very low at 0.01%. Public holding has increased to 36.08% as of March 2025. The number of shareholders has increased over the years, reaching 15,424 in March 2025. The decrease in promoter holding and increase in public holding may raise concerns about the alignment of interests.

Medico Remedies experiences volatility in its segment performance, as evidenced by fluctuating quarterly results. The YOY Sales Growth % varies significantly, ranging from -23.37% to 47.62%. Similarly, the YOY Profit Growth % fluctuates from -36.21% to 80.69%. This variability indicates potential challenges in maintaining consistent financial performance across different periods.

The shareholding pattern of Medico Remedies indicates shifts in ownership structure. Promoter holding has decreased from 73.34% to 63.79% as of March 2025. FII holding is minimal at 0.11% as of March 2025, and DII holding is also very low at 0.01%. Public holding has increased to 36.08% as of March 2025. The decrease in promoter holding and increase in public holding may raise concerns about the alignment of interests.