“Dr Trust products be like: monitor your BP… while the stock gives you a heart attack.”
1. 🛰️ At a Glance
Nureca Ltd sells home healthcare and wellness gadgets — thermometers, BP monitors, oximeters, weighing scales, etc. You’ve probably seen their Dr Trust ads during COVID. But since the pandemic highs, revenue halved, margins collapsed, and profits disappeared faster than hand sanitizer in March 2020.
2. 🎬 Introduction with Hook
IPO in 2021. Profit in FY21. Everything else = symptoms of long COVID.
Once a D2C darling, Nureca was expected to ride the “healthcare at home” trend. Instead:
- Revenues down
- Margins negative
- ROE/ROCE in ICU
- Promoters reducing stake
Meanwhile, they still talk about “digital-first” like it’s 2017.
3. 🏢 Business Model – WTF Do They Even Do?
Nureca sells:
- 👩⚕️ Home diagnostic tools – BP monitors, pulse oximeters, nebulizers
- 🏋️ Wellness gadgets – smart weighing scales, fitness meters
- 🧘 Mobility aids – wheelchairs, walkers
- 🔥 Flagship brand: Dr Trust
Channels:
- Online (Amazon, Flipkart)
- D2C (their own site)
- Pharma retail & export
But D2C business with no differentiation = commoditized margins. And in FY25, it’s showing.
4. 📈 Financials – Profits, Margins, ROE
| Metric | FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|
| Revenue | ₹110 Cr | ₹92 Cr | ₹111 Cr | ₹256 Cr |
| Net Profit | ₹1 Cr | -₹2 Cr | -₹8 Cr | ₹45 Cr |
| ROE | -1.12% | -1.79% | -8.25% | 44.96% |
| OPM | -7% | -11% | -13% | 22% |
📉 Revenue down 57% since FY22.
📉 Net profit down 98% since IPO.
📉 ROCE has fallen below room temperature.
5. 💸 Valuation – Cheap, Meh, or Crack?
- CMP: ₹285
- Book Value: ₹194
- P/B: 1.47x
- PE: 280x (LOL, based on ₹1 Cr PAT)
- Market Cap: ₹286 Cr
Fair Value Range:
👉 If margins normalize to 8% and they hit ₹150 Cr sales, PAT ~₹10 Cr → P/E 15x → FV = ₹140–₹170
Current price? Way overvalued unless they pull a miracle margin jump.
6. 🍿 What’s Cooking – News, Triggers, Drama
- 👋 Resignation of Sales & Supply Chain Head (July 2025)
- 🧾 FY25: Marginally back to profit, but nothing impressive
- 💔 Working Capital Days ballooned to 441 days 😱
- 📉 FIIs & DIIs exited post-IPO. Retail stuck with 34% holding
- 🤷♂️ Promoters reduced holding by 5.7% over 3 years
Basically, all green flags from FY21… now red.
7. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| FY25 |
|---|
| Equity Capital |
| Reserves |
| Borrowings |
| Investments |
| Total Assets |
They’ve been slowly burning cash & investments to survive.
No dividends, no buybacks, no cheer.
8. 💵 Cash Flow – Sab Number Game Hai
| FY25 |
|---|
| CFO |
| CFI |
| CFF |
| Net Cash Flow |
D2C stocks with negative cash flow = tech bros without VC.
You either burn bright or just burn. Guess what Nureca is doing?
9. 📐 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | -0.9% |
| ROE | -1.12% |
| Debtor Days | 11 |
| Inventory Days | 214 (high af) |
| Working Capital Days | 441 🔥 |
They’re sitting on piles of inventory — but not selling enough.
10. 📊 P&L Breakdown – Show Me the Money?
Quarterly Trend:
| Quarter | Revenue | Net Profit |
|---|---|---|
| Mar 2025 | ₹31.74 Cr | ₹2.47 Cr |
| Dec 2024 | ₹26.46 Cr | -₹2.8 Cr |
| Sep 2024 | ₹31.19 Cr | -₹0.48 Cr |
| Jun 2024 | ₹20.27 Cr | ₹1.66 Cr |
Only 1 clean quarter in FY25. The rest = margin migraines.
11. 🥊 Peer Comparison – Who Else in the Game?
| Stock | OPM | ROE | Remarks |
|---|---|---|---|
| Poly Medicure | 27% | 16% | 🧠 Elite |
| Prevest Denpro | 34% | 18.7% | Dental 👑 |
| OSEL Devices | 17.9% | 30% | Margin monster |
| Nureca | -7% | -1.12% | D2C burnout case |
Among healthcare equipment stocks, Nureca is the only one still in recovery mode.
12. 🧬 Misc – Promoters, Public, Insider Drama
- Promoter Holding: 64.3% (recovering, was 62.9% in 2022)
- FIIs: 1.07% (used to be 12%! 😬)
- DIIs: Dead. Gone. Ghosted.
- Public Holding: 34.6%
- 📉 Retail investors down from 63K to 39K in 2 years
Even the patient holders have stopped checking vitals.
13. 🧑⚖️ EduInvesting Verdict™
“Nureca peaked when oximeters were more important than oxygen.”
Yes, the brand is known.
Yes, they have decent distribution.
Yes, they might post profits again.
But right now? It’s an overvalued, low-margin, inventory-heavy business with an uncertain moat and no D2C magic left.
Until they get back to 15–20% EBITDA margin, this is just an FY21 bull market souvenir.
✍️ Written by Prashant | 📅 9 July 2025
Tags: Nureca Ltd, Dr Trust, D2C Healthcare, Post-COVID Stocks, Home Wellness, Healthcare Equipment, Smallcap Analysis, EduInvesting, Valuation Correction, Retail Bagholder
