This healthcare products stock has zoomed 102% thus far in April

Shares of Nureca were locked in the upper circuit for the fourth straight day, up 5 per cent at Rs 1,218.60 on the BSE on Thursday. The stock has zoomed 102 per cent thus far in the month of April as against a decline of 3.7 per cent in the S&P BSE Sensex during the same period.

The stock has continued its northward movement despite the company, on April 13, clarifying that the movement in volume and price of its equity shares are purely market-driven. The stock is trading at its highest level since listing in February. It has gained 205 per cent against its issue price of Rs 400 per share.

Nureca is a B2C company engaged in the business of home healthcare and wellness products. It enables its customers with tools to help them monitor chronic ailments and other diseases, to improve their lifestyle. Nureca is a digital-first company wherein it sells its products through online channel partners such as e-commerce players, distributors and retailers and its own website drtrust.in. The company has brands such as Dr Trust, Dr Physio and Trumom.

Nureca classifies its products portfolio under the five categories such as chronic device products, orthopaedic products, mother and child products, nutrition supplements and lifestyle products. The chronic device products include products such as blood pressure monitors, pulse oximeters, thermometers, nebulizers, self-monitoring glucose devices, humidifier and steamers. While, the orthopaedic products include rehabilitation products such as wheelchairs, walkers, lumbar and tailbone supports and physiotherapy electric massagers.

The Covid-19 pandemic has been a major driver for the Chronic Disease Market, with an estimated 28 per cent growth in revenues in 2020. The WHO as well as ICMR (India) have recommended safety measures, but also guidelines for home quarantine, including regular monitoring of key body parameters. Devices like oxygen concentrators, cylinders, humidifiers, steamers, nebulizers and others, have also shown increasing sales as these are direct interventions during the management of symptomatic Covid-19 patients.

The Home Health Market in India and neighbouring countries is pegged at Rs 20,757 crore in 2019 and is expected to grow to Rs 38,920.7 crore by 2025 at a CAGR of 11 per cent. The growth is driven by rising awareness of health and wellness, increasing spending power, the growing burden of chronic diseases, and the need for healthcare stakeholders to reduce healthcare costs, Nureca said quoting Frost & Sullivan Report in its draft red herring prospectus (DHRP).

Currently, 95 per cent of revenues for Nureca come through digital channels (e-commerce). However, this poses an opportunity for Nureca to expand into the offline channel. This would provide significant impetus to their growth, and build their brand value as well, the DRHP added.