QMS Medical Allied Services Rights Issue @ ₹81 – Key Details, Valuation & Financial Performance
QMS Medical Allied Services Limited has launched a rights issue worth ~₹12.05 crore at ₹81 per share (ratio 1:12). With FY25 revenue of ~₹156 crore, net profit ~₹14 crore, and improving margins, this rights offer may interest investors. Read issue details, financials, valuation & peer comparison.
Overview of QMS Medical Allied Services
QMS Medical Allied Services Ltd is a healthcare company based in Mumbai. It provides and distributes medical devices, surgical equipment, and healthcare products under its own brand QDevices as well as other global brands. The company also runs medical education programs, patient health camps, and online sales platforms. With a growing product portfolio that includes diagnostic tools, monitoring devices, and hospital supplies, QMS aims to support doctors, hospitals, and patients with affordable and reliable healthcare solutions.
Company Financials
Here are the key financials & related metrics for QMS Medical Allied Services, especially relevant around its rights issue:
| Metric | FY2024 | FY2025 |
|---|---|---|
| Revenue (Consolidated) | ~₹122 crore | ~₹156 crore |
| Expenses | ~₹104-110 crore | ~₹131 crore |
| Operating Margin (OPM) | ~15% | ~16% |
| Net Profit / PAT | ~₹9 crore | ~₹14 crore |
| EPS | ~₹6.26 in FY24 | ~₹6.54 (TTM) |
Rights Issue Details
- Issue Size: 14,87,500 equity shares; amount ≈ ₹12.05 crore
- Issue Price: ₹81 per share
- Entitlement / Ratio: 1 new rights share for every 12 shares held as on record date
- Face Value: ₹10 per share
- Record Date: 4 September 2025
- Subscription Period: 12 September 2025 – 22 September 2025
Valuation & Financial Ratios
- The company’s trailing twelve-month (TTM) EPS is ~ ₹6.53 (per share)
- Price to Earnings (P/E) ratio: roughly in the mid-teens (depending on share price) around 14-15× range before rights issue.
- Book Value / Price to Book (P/B) is also available via some data sources: Book value per share ~ ₹49.3 (as per Arihant Capital)
Peer / Comparison Analysis
To evaluate whether the rights issue is attractive, here’s how QMS compares with peers in similar medical devices / healthcare/distribution sectors:
| Factor / Peer | QMS Medical Allied Services | Typical Peer A / Medical Devices Distributor | |
|---|---|---|---|
| Revenue growth (YoY) | Strong growth FY24 → FY25 (from ~₹122 cr → ~₹156 cr) | Peers may have steadier growth but sometimes lower margins depending on product mix | |
| Profit Margin / Operating Margin | OPM ~16% in FY25; PAT margin reasonably healthy given expenses | Some peers have lower margin due to heavier hardware imports / regulatory costs | |
| Current Valuation / P/E | Mid-teens (~14-15×) prior to rights issue, which is moderate for sector growth potential | Some peers trade at higher P/E if growth or product differentiation is strong | |
| Leverage / Debt | Borrowings have risen: company has debt but not excessively high relative to equity; interest expense is manageable | Peers with heavy manufacturing or R&D may have higher debt; those largely distribution-based tend to have lower leverage | |
| Product & Brand Diversification | QMS sells under its brand “QDevices”, distributes for others (3M, Heine, Rossmax etc.), plus medical education vertical, online store etc. | Peers may lack educational vertical or mix of B2B / B2C e-commerce may be less |
Strengths & Risks
Strengths:
- Good revenue and profit growth in recent fiscal years.
- Healthy operating margins around 15–16%.
- Rights issue leverages existing shareholder base (ratio 1:12), likely less dilutive.
- Diverse product portfolio, alignment with growing demand for medical devices, e-commerce, medical education.
Risks:
- Rights issue price (₹81) vs market price risk: if market doesn’t respond well, rights may trade at discount.
- Regulatory, import duties, supply chain risks in medical devices sector.
- Competition from other medical suppliers and international brands.
- Risk of dilution of ownership, though small given ratio.
Conclusion / Investor Takeaway
The QMS Medical Allied Services rights issue presents a moderate-risk, moderate-return proposition:
- For existing shareholders: a chance to acquire more shares at a known price; potentially beneficial if company continues its growth trajectory.
- For new investors: could consider entering but assess likely post-issue share dilution, market reaction, and whether the ₹81 price offers good value vs peers.
- Overall, given strong financial performance, respectable margins, and decent valuation metrics, the rights issue looks reasonably priced, assuming no unpleasant surprises.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
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