At a Glance:
From surgical tools to secret share swaps, Royal Sense Ltd has gone from a merger of nobodies to a ₹128 Cr SME-listed pharma trader. FY25 revenue jumped 247%, ROCE is a juicy 35.2%, and profits grew 298% — but is this “sense” or just another stock with main character syndrome?
1. 🎬 Hook It to My Veins
Forget biotech patents or molecule discoveries. Royal Sense’s business model is simple:
📦 Buy stuff.
💊 Sell stuff.
💰 Pray margins don’t flatline.
And yet, the numbers scream “multibagger.”
So what’s the real story here?
2. 🧬 WTF Do They Even Do?
- 👩⚕️ Royal Sense Ltd is basically your Amazon seller… if Amazon sold surgical gloves and stethoscopes.
- In FY23, Royal Traders, Anaya, and PHT merged into a single pharma Frankenstein called Royal Sense.
- Their game: trade pharmaceuticals & medical devices, supply hospitals & labs, and build a catalogue of customizable surgical tools.
- Oh, and now they’re merging with TTG Innovations (don’t worry, no one’s heard of them either).
3. 📊 Financials — Dopamine Booster or Placebo?
| Metric | FY24 | FY25 | % Change |
|---|---|---|---|
| Revenue (₹ Cr) | 17.8 | 61.7 | 🔥 +247% |
| Net Profit (₹ Cr) | 1.6 | 6.3 | 🚀 +298% |
| OPM | 12.7% | 14.4% | ✅ Improving |
| ROE | 28% | 27.6% | 🎯 Steady |
| ROCE | — | 35.2% | 💪 Strong |
Margins aren’t Poly Medicure-tier, but for a glorified B2B distributor? Surprisingly decent.
4. 💸 Valuation – Cheap, Meh, or Cringe?
- P/E = 20.3
- Market Cap = ₹128 Cr
- EPS FY25 = ₹12.74
- CMP = ₹240
- Price/Book = 4.3x
- Fair Value Range = ₹170–₹210 (assuming 15–18x P/E on FY25 earnings)
Verdict: Not expensive. Not a steal. Slightly frothy — maybe due to post-IPO hype and merger “hopium”.
5. 🔍 What’s Cooking?
- 🧪 New Products Launched: 9 pharma SKUs added in May 2025.
- 🤝 Merger With TTG Innovations: Approved with a ridiculous 18.1:1 share swap ratio. TTG must’ve had serious tech or just better lawyers.
- 🏢 New Office: Moved base within Delhi. Not game-changing, but good to see growth logistics.
6. 📉 Balance Sheet – How Much Debt, How Many Dreams?
| Item | FY25 (₹ Cr) |
|---|---|
| Equity + Reserves | 27.7 |
| Borrowings | 3.25 |
| Total Liabilities | 35.6 |
| Fixed Assets | 1.65 |
| Cash & Other Assets | 33.5 |
🧾 Debt/Equity = 0.12 → No red flags.
🔋 Asset-light model = Classic pharma trading DNA.
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF Trend |
|---|---|---|
| FY24 | -3.87 | 🤕 Hug diya |
| FY25 | +1.14 | 👶 Barely walking |
They’re not burning cash anymore, but not exactly raining it either. Inventory and receivables are a working capital pain — CCC = 119 days.
8. 🔢 Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 27.6% |
| ROCE | 35.2% |
| Debtor Days | 86 |
| Inventory Days | 42 |
| CCC | 119 |
| P/B | 4.3 |
| Promoter Holding | 62.24% 👇 |
🔻 Promoter holding dropped by 5.72% recently — someone rang the bell at ₹300 and left.
9. 💰 P&L Breakdown – Show Me the Money
- FY25 Sales: ₹61.7 Cr
- Operating Profit: ₹8.88 Cr
- Net Profit: ₹6.33 Cr
- Tax Rate: 27.5% → Standard
All clean. No “Other Income” magic, no “crypto dividend from subsidiary” nonsense. Just boring pharma trade.
10. ⚔️ Peer Comparison
| Company | P/E | ROCE | OPM | Sales (Cr) | M.Cap (Cr) |
|---|---|---|---|---|---|
| Royal Sense | 20.3 | 35.2% | 14.4% | 61.7 | 128 |
| OSEL Devices | 22.6 | 31.1% | 17.9% | 186 | 453 |
| Prevest Denpro | 30.7 | 25.0% | 35.0% | 63 | 559 |
| Vasa Denticity | 60.3 | 23.2% | 9.3% | 249 | 1,030 |
| Laxmi Dental | 88.8 | 18.7% | 17.5% | 239 | 2,389 |
Royal has the lowest market cap in the segment but is punching slightly above its weight — more Aprameya than Poly Medicure.
11. 🧠 Misc — Shareholding, Auditors, etc.
- 👨⚕️ Promoters: 62.24% (↓ from 67% in Mar)
- 👥 Public: 37.76%
- 🧾 Auditors for FY26 appointed in June
- 🧬 TTG merger to change share dynamics soon
Nothing shady, but keep an eye on post-merger dilution and promoter pledging (if any).
12. 📢 EduInvesting Verdict™
Royal Sense Ltd is like that pharmacy kid in your college who suddenly shows up in a BMW after “some UAE cousin” ties up a distribution deal.
- 🔥 Numbers look great (but very fresh — only 1 year post-merger).
- 🧻 Cash flow is finally positive, but thin.
- 🧬 Merger with TTG might unlock synergies… or unlock exits.
It’s not trash. But it’s also not Poly Medicure.
In short:
Pharma profits ka teaser chal raha hai… let’s see if the full movie delivers.
Fair Value Range: ₹170–₹210 🧮
(Current CMP: ₹240 is slightly ahead of earnings — might need to cool off)
✍️ Written by Prashant | 📅 July 1, 2025
Tags: Royal Sense Ltd, SME IPO, Pharma Stocks, Medical Device Suppliers, TTG Innovations Merger, EduInvesting
