If we talk about the most Lucrative sectors where deman will always be there at least in India , Then Pharma can be considered as one of such industry . Specially after the Covid Pharma sector has become of vital important for every country in the world . Even Indian Govt had made special funding arrangement to boost the overall investments , Infrastructure setup in India . When we look at the margins of the cos working in pharma , Its great compared to other sectors like Steel , Cement , Auto etc .
During Covid , all hospitals were filled with patients and Huge amount of bills were charged for Curing of these diseases , Some of the hospitals had turn in to 5 star facilities to get good amount of bills .
So , if you think that this sector is really attractive to invest then here you have Good Option to consider , Recently as the sector Become more competative online pharmacy stores has been increasing their revenues and pentration across india . There are now more than 10 + Key players in the catagories . The top one's are doing well even if they are still not in profits but compared to the physical stores here are some of the advantages they have --
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1 - One time setup for most of the part , in case of physical it's not one time , there may be requirement of regular maintainance and other costs to be spend .
2 - Goods can be sold without any kind of geographical limitations as customers can place order online and through the delivery network it can get delivered similar to Flipkart, amazon.
3 - They can have more freedom in terms of running the business , Maintaining the staff , Offering after sales support and better client experience. In physical store things are different 4 - Offcourse , the competition from other online players is also there but since india is huge , every can have their own market share .
5 - Online stores have better data base for managing Product specific inventories with specific location targeting , Offering better pricing to attract Customers . In case of physical / traditional medical shop it may not be possible .
In india some of the brands in the online pharmacy are - Netmeds , 1mg , Pharmeasy , medplus, appollo etc , out of these Pharmeasy has the highest share in the market .
Recently medplus listed in the Stock market - IPO was at 796 Rs per share and after hitting high of 1343 Rs Currently is at 989 , still 200 Rs plus than ipo rate .
For investors who value the future prospect , Pharmeasy is the new option as it got go ahead for the ipo from sebi . Lets look at more information about it -
What is PharmEasy ?
PharmEasy is a consumer healthcare “super app”.
PharmEasy is a consumer healthcare “super app” that provides consumers with on-demand, home delivered access to a wide range of prescription, OTC pharmaceutical, other consumer healthcare products, comprehensive diagnostic test services, and teleconsultations thereby serving their healthcare needs .
25 MillionRegistered Users as of Jun 30, 2021
8.8 MillionPharmEasy Orders as of FY21
2.4 MillionTransacting customers as of FY21
Product and Services
If you check the website of PharmaEasy, you will find the following services;
(i) Order Online Medicine
How does it work?
Step-1: The buyer needs to upload the prescription. Once PharmEasy receives it, they verify and send the same to the Medical stores near the pin code.
Step-2: PhameEasy delivery agent then collects medicine from Pharmacy and delivers it to the user.
(ii) Healthcare Products
Similar to buying the medicine you can buy various healthcare products such as Nutritions, Personal care, Skin Care, Ayurvedic Products, Life-Style Ailments Products.
(iii) Diagnostics Tests
Under this service, you can book diagnostics tests under PharmEasy labs. PharmEasy labs is a diagnostic service offered by its partner lab Medlife Labs directly. Medlife is now being acquired by PharmEasy. As they have recently acquired Thyrocare, they are giving the option to book tests for these labs as well.
PharmEasy Business Model
The business model is very simple and straightforward. It connects buyers, suppliers, and distributors. Buyer has the option to choose services such as Medicine, Health-Care Products, book diagnostic tests, etc from the application and website.
They get 1-2% commission on selling medicines, they get advertisement money for displaying products of various pharmaceuticals, Nutraceuticals, companies, etc., and also get income from diagnostics tests.
Valuation of PharmEasy Unlisted Share Outstanding Shares = 610 Crores PharmEasy Unlisted Share Price = 115 per share Mcap = ~70,000 Crores or $9.35 Billion.
Valuation and Peer LearningIn India, currently there are no listed peers to compare with. However, Net-Med in the same business was recently acquired by Reliance Industries and one US based listed company almost in the similar business is taken for peer comparison. Net-Med DealNetMed was acquired by Reliance Industries in August-2020 for Rs. 622 Crores. The Netmeds Marketplace, the B2C e-commerce unit of online pharmacy, saw its total income decline by 44% to INR 7.7 Cr in FY20 from INR 13.93 Cr in the fiscal year 2018-19 (FY19).
Name of ShareholderHoldings (%)
Naspers Ventures BV 12.04
Macritchie Investments Pte. Ltd 10.84
Surbhi Singh jointly with Universal Trustees Private Limited 6.70
TP G Growth V SF Markets Pte. Ltd.6.65
As per the Price information of the pharmeasy in the unlisted market ( grey market ) , The stock hit high of 140 to come down around 70 - 80 . The Actual price of the share for you will be the one which is offered by the dealers in the unlisted stocks .
Still , considring the overall picture and if you really wish to own the shares of Such online pharma co then you can think of Pharmeasy Now .