Company Background and Business Operations

Mono Pharmacare Limited was originally established as a Partnership Firm under the name "M/s. Mono Chemist" through a Partnership Deed dated May 06, 1994. The Partnership Firm was subsequently converted into a Public Limited company in the name of Mono Pharmacare Limited with Certificate of Incorporation dated October 17, 2022, issued by the Registrar of Companies, Ahmedabad.

The Company is engaged in the business of marketing and distribution of pharmaceutical products. Mono Pharmacare Ltd is an India-based company which is a distributor and supplier of a wide array of pharmaceutical products and medicines. The company offers health care products, antibiotic medicines, cough, cold-anti-allergic medicines, antifungal medicines, nutraceutical medicines, analgesic and antipyretic medicines, antacid and antiemetics medicines, cardiac - diabetic medicines, and Cosmo care products.

The product portfolio comprises a wide range of drugs like Antibiotics, Antifungal, Anti CoughCold & Anti-allergic, Antacid and Antiemetics, Analgesics and Antipyretics, Nutraceuticals, Skincare, Antiseptic, Cardiac and Diabetic & Cosmetics etc. The Company's segments are Marketing of Pharmaceutical Products, and Distributor of Pharmaceuticals Companies.

Stock Performance and Market Position

The shares got listed on NSE SME on September 7, 2023. Mono Pharmacare IPO price band was set at ₹28 per share. As on Feb 27, 2025, Mono Pharmacare Ltd (MONOPHARMA)'s share price on NSE is ₹23.00. The current market capitalization of Mono Pharmacare Ltd (MONOPHARMA) is ₹42.40 Crore.

The stock has experienced significant volatility since its listing.

• 52-Week High: ₹66.00

• 52-Week Low: ₹22.10

• Performance (Last 6 Months): -41.92%

• Performance (Last 1 Year): -63.78%

Financial Performance and Key Metrics

The company has shown substantial revenue growth in recent periods. Mono Pharmacare Ltd has an operating revenue of ₹334.51 Crore on a trailing 12-month basis. An annual revenue growth of 350% is outstanding. The pre-tax margin of 3% needs improvement, and ROE of 8% is fair but requires enhancement.

Regarding profitability:

• TTM Profit After Tax: ₹2.00 Crore

• Profit Mar 2024: ₹2.44 Crore

• Profit Mar 2023: ₹0.70 Crore

The total asset value of Mono Pharmacare Ltd stood at ₹81.00 Crore as on 31-Mar-24.

Key Financial Ratios and Metrics:

• Current PE Ratio: 17.39

• Current PB Ratio: 1.51

• Debt to Equity Ratio: 61% (considered a bit higher)

• Latest Debt (Sep-24): ₹48.58 Crore (Increased from ₹40.95 Crore in Mar-24)

Management and Shareholding Structure

• Promoters: LAKHATARIYA PANILAM and SUPAL PANILAM LAKHATARIYA

• Total Promoter Holding: 56.71%

• Promoter Pledging: None

• Key Associate Firm: Supal Distributors LLP (incorporated Nov 24, 2016, with Promoters as Original Partners)

Industry Position and Business Model

From an O'Neil Methodology perspective:

• EPS Rank: 95 (GREAT score indicating earnings consistency)

• RS Rating: 5 (POOR indicating underperformance vs. other stocks)

• Buyer Demand: E (Heavy Supply)

• Group Rank: 12 (Belongs to strong industry group: Medical-Whlsle Drg/Suppl)

• Master Score: D (Close to the worst)

Overall, the stock lags in some technical parameters, but its strong earnings make it a stock worth examining. Please note that this is a thinly traded stock.

The company operates primarily through contract manufacturing arrangements, outsourcing manufacturing operations to focus on distribution and marketing.

Risk Factors and Dividend Policy

The company appears to be paying a very low dividend, suggesting investors should monitor how profits are being allocated.

• Latest Dividend Payout Ratio: 0%

• 3-Year Average Dividend Payout Ratio: 0%

The company's debt levels have been increasing, which presents a risk factor. However, the balance sheet is considered strong, and it should not face solvency or liquidity issues.

Mono Pharmacare Limited represents an emerging player in India's pharmaceutical distribution sector with significant revenue growth momentum but faces challenges in terms of stock performance and operational efficiency metrics. The company's strategic position in the growing pharmaceutical market, combined with its established distribution network, provides potential for future growth, though investors should carefully consider the current valuation and market conditions.