Medical Equipment/Supplies/Accessories · Founded 1989 · www.hemantsurgical.com · BSE 543916 · · ISIN INE0GYI01028
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Business
Hemant Surgical Industries Ltd. (HSIL) is an integrated medical devices company engaged in the manufacturing, import, marketing, and distribution of a wide range of surgical, medical, and dialysis equipment and consumables. The core business model involves supplying these products primarily to hospitals, diagnostic centers, and clinics across India through a direct sales team and an extensive distribution network. HSIL generates revenue by selling its manufactured products (including OEM arrangements) and imported medical devices, with a significant focus on renal care/dialysis products.
Revenue Mix
While HSIL does not typically report specific revenue percentages for distinct segments, its operations can be broadly categorized by product areas:
Dialysis Products: This is a key area of strength and focus, including dialyzers, bloodlines, fistula needles, and dialysis machines.
Surgical Products: Encompasses a range of surgical instruments, disposables, and equipment used across various medical specialties such as urology, critical care, cardiology, laparoscopy, and neurosurgery.
The company functions as both a manufacturer and an importer/distributor of these medical devices.
Industry
The Indian medical devices industry is experiencing robust growth, driven by increasing healthcare access, rising disposable incomes, and a growing disease burden. It is significantly import-dependent (around 80% of the market), although government initiatives like 'Make in India' are promoting domestic manufacturing. The market is highly competitive, with a mix of large multinational corporations, established domestic players, and numerous smaller enterprises. HSIL positions itself as a mid-sized, integrated player, leveraging its manufacturing capabilities for certain products while also importing high-quality devices. It has carved out a notable presence, particularly in the renal care/dialysis segment, competing with both domestic and international brands.
MOAT
HSIL's competitive advantages include:
Integrated Business Model: Combining domestic manufacturing (including OEM capabilities) with importing and an established distribution network provides flexibility, potential cost advantages for manufactured items, and a comprehensive product portfolio.
Extensive Distribution Network: A pan-India sales and distribution network built over decades is critical for reaching diverse healthcare providers across urban and semi-urban areas.
Specialization in Dialysis: A focused approach and expertise in the growing dialysis segment has allowed the company to build deep customer relationships and product knowledge within this niche.
B2B Relationships: Long-standing relationships with hospitals, clinics, and diagnostic centers contribute to repeat business and market visibility.
Growth Drivers
Rising Healthcare Expenditure & Infrastructure: Continuous growth in public and private healthcare spending in India, coupled with the expansion of hospitals and diagnostic centers, drives sustained demand for medical devices.
Increasing Incidence of Chronic Diseases: The growing prevalence of lifestyle diseases, particularly chronic kidney disease (CKD), directly fuels the demand for dialysis products and related care.
Government Initiatives: 'Make in India' policies for medical devices and national health protection schemes like Ayushman Bharat are expected to boost healthcare access and domestic manufacturing, benefiting HSIL.
Product Portfolio Expansion: Introduction of new and advanced products, and entry into new therapeutic areas, can expand market reach and revenue streams.
Market Penetration: Further deepening penetration in Tier 2/3 cities and rural areas as healthcare access and awareness improve.
Risks
Intense Competition: The Indian medical device market is highly competitive, with both well-established multinational corporations and growing domestic manufacturers, which can lead to pricing pressures and impact market share.
Regulatory Changes: The medical device sector is subject to strict and evolving regulations (e.g., pricing controls, quality standards, import policies), which can affect operations and profitability.
Dependency on Imports: Reliance on imported raw materials or finished products exposes the company to currency fluctuations, geopolitical risks, and potential supply chain disruptions.
Technological Obsolescence: The rapid pace of innovation in medical technology means existing products can quickly become outdated, necessitating continuous R&D and investment.
Working Capital Management: Managing inventory levels and receivables, particularly in a segment with long sales cycles and varying payment terms from healthcare institutions, can be challenging.
Management & Ownership
The company was founded by Mr. Hemant Modi, who serves as the Chairman and Managing Director. He is the key promoter and brings extensive experience in the medical devices industry. The promoter group holds a significant stake in the company, indicating strong alignment of interests with long-term growth. The management team's experience and strategic direction are critical in navigating the competitive and regulated healthcare market.
Outlook
HSIL operates in a fundamentally attractive and growing Indian medical devices market, supported by favorable demographic trends, increasing disease burden, and expanding healthcare access. The company's integrated approach (manufacturing, import, and distribution) and its established presence, particularly in the dialysis segment, provide a solid foundation.
The bull case for HSIL hinges on the continued expansion of healthcare infrastructure, successful new product launches, supportive government policies promoting domestic manufacturing, and sustained demand for specialized medical care, which could drive consistent revenue and profit growth.
Conversely, the bear case involves risks such as intense price-based competition, adverse regulatory changes (e.g., stringent price controls), significant currency volatility impacting import costs, or failure to innovate and adapt to new technologies. The company's ability to effectively navigate competitive pressures, manage its import dependency, and expand its product portfolio will be crucial for its future performance and market positioning.
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| #(Fig in Cr.) |
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| Net Sales |
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| Total Income |
| Total Expenditure |
| Operating Profit |
| Interest |
| Depreciation |
| Exceptional Income / Expenses |
| Profit Before Tax |
| Provision for Tax |
| Profit After Tax |
| Adjustments |
| Profit After Adjustments |
| Adjusted Earnings Per Share |
| #(Fig in Cr.) | Mar 2025 | TTM |
|---|---|---|
| Net Sales | 107 | |
| Other Income | 5 | |
| Total Income | 112 | |
| Total Expenditure | 98 | |
| Operating Profit | 14 | |
| Interest | 2 | |
| Depreciation | 1 | |
| Exceptional Income / Expenses | 0 | |
| Profit Before Tax | 10 | |
| Provision for Tax | 2 | |
| Profit After Tax | 8 | |
| Adjustments | 0 | |
| Profit After Adjustments | 8 | |
| Adjusted Earnings Per Share | 7.7 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 0% | 0% | 0% | 0% |
| Operating Profit CAGR | 0% | 0% | 0% | 0% |
| PAT CAGR | 0% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 298% | NA% | NA% | NA% |
| ROE Average | 13% | 13% | 13% | 13% |
| ROCE Average | 14% | 14% | 14% | 14% |
| #(Fig in Cr.) | Mar 2025 |
|---|---|
| Shareholder's Funds | 63 |
| Minority's Interest | 0 |
| Borrowings | 23 |
| Other Non-Current Liabilities | 0 |
| Total Current Liabilities | 61 |
| Total Liabilities | 148 |
| Fixed Assets | 40 |
| Other Non-Current Assets | 19 |
| Total Current Assets | 89 |
| Total Assets | 148 |
| #(Fig in Cr.) | Mar 2025 |
|---|---|
| Opening Cash & Cash Equivalents | 13 |
| Cash Flow from Operating Activities | 9 |
| Cash Flow from Investing Activities | -30 |
| Cash Flow from Financing Activities | 18 |
| Net Cash Inflow / Outflow | -4 |
| Closing Cash & Cash Equivalent | 10 |
| # | Mar 2025 |
|---|---|
| Earnings Per Share (Rs) | 7.7 |
| CEPS(Rs) | 9.07 |
| DPS(Rs) | 0 |
| Book NAV/Share(Rs) | 60.51 |
| Core EBITDA Margin(%) | 8.53 |
| EBIT Margin(%) | 12 |
| Pre Tax Margin(%) | 9.81 |
| PAT Margin (%) | 7.54 |
| Cash Profit Margin (%) | 8.88 |
| ROA(%) | 5.43 |
| ROE(%) | 12.73 |
| ROCE(%) | 13.58 |
| Receivable days | 69.76 |
| Inventory Days | 147.65 |
| Payable days | 187.95 |
| PER(x) | 12.94 |
| Price/Book(x) | 1.65 |
| Dividend Yield(%) | 0 |
| EV/Net Sales(x) | 1.18 |
| EV/Core EBITDA(x) | 8.83 |
| Net Sales Growth(%) | 0 |
| EBIT Growth(%) | 0 |
| PAT Growth(%) | 0 |
| EPS Growth(%) | 0 |
| Debt/Equity(x) | 0.49 |
| Current Ratio(x) | 1.45 |
| Quick Ratio(x) | 0.75 |
| Interest Cover(x) | 5.5 |
| Total Debt/Mcap(x) | 0.3 |
| # | Sep 2023 | Mar 2024 | Sep 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Promoter | 73.56 | 73.56 | 73.56 | 73.56 | 58.9 | 58.9 | 58.9 |
| FII | 0.03 | 0 | 0 | 0.39 | 0.15 | 0.15 | 0.15 |
| DII | 4.26 | 1.97 | 1.13 | 1.11 | 10.81 | 10.81 | 10.73 |
| Public | 22.15 | 24.47 | 25.3 | 24.93 | 30.14 | 30.14 | 30.21 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Sep 2023 | Mar 2024 | Sep 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Promoter | 0.77 | 0.77 | 0.77 | 0.77 | 0.77 | 0.77 | 0.77 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.04 | 0.02 | 0.01 | 0.01 | 0.14 | 0.14 | 0.14 |
| Public | 0.23 | 0.26 | 0.26 | 0.26 | 0.39 | 0.39 | 0.39 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.04 | 1.04 | 1.04 | 1.04 | 1.3 | 1.3 | 1.3 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | — | — | — | — |
| Operating Profit CAGR | — | — | — | — |
| PAT CAGR | — | — | — | — |
| Share Price CAGR | +298% | — | — | — |
| ROE Average | +13% | +13% | +13% | +13% |
| ROCE Average | +14% | +14% | +14% | +14% |
| # | Sep 2023 | Mar 2024 | Sep 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Promoter | 73.56 | 73.56 | 73.56 | 73.56 | 58.9 | 58.9 | 58.9 |
| FII | 0.03 | 0 | 0 | 0.39 | 0.15 | 0.15 | 0.15 |
| DII | 4.26 | 1.97 | 1.13 | 1.11 | 10.81 | 10.81 | 10.73 |
| Public | 26.44 | 26.44 | 26.44 | 26.44 | 41.1 | 41.1 | 41.1 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Sep 2023 | Mar 2024 | Sep 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|
| Promoter | 0.77 | 0.77 | 0.77 | 0.77 | 0.77 | 0.77 | 0.77 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.04 | 0.02 | 0.01 | 0.01 | 0.14 | 0.14 | 0.14 |
| Public | 0.28 | 0.28 | 0.28 | 0.28 | 0.54 | 0.54 | 0.54 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.04 | 1.04 | 1.04 | 1.04 | 1.3 | 1.3 | 1.3 |
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