Should you invest in Pharmeasy Unlisted Shared?: Valuation, Profit & Loss Summary
Pharmeasy is an Indian company founded in 2015 by Dharmil Sheth and Dhaval Shah. It was initially funded by their parents only, and later on, it got successful and became India’s one of the largest healthcare brands. The hassle-free delivery of medications and other medical supplies is handled by PharmEasy, which also functions as an online pharmacy. PharmEasy is active in several of India's largest cities.
PharmEasy has made it convenient and straightforward to buy medications online. The organisation sends thousands of consumers their prescription medications and other medical supplies daily. Pharmeasy has performed well in revenue and profits in the last few years since its beginning. In this article, we will discuss Pharmeasy unlisted share price so you can decide whether to invest in Pharmeasy shares or not.
Market Valuation and Funding
PharmEasy, an Indian online pharmacy startup, is raising approximately $300 million in a new funding round, but at a significant markdown of 90% from its previous valuation. PharmEasy's valuation would drop to half of the total capital it has raised over the years if it successfully secured the new funding. The funds are urgently needed to repay a debt of around $285 million to lender Goldman Sachs, which was borrowed last year to finance the acquisition of Thyrocare's majority stake for over $600 million.
PharmEasy offers various services, including wellness information, consultations, diagnostic tests, and treatment deliveries. The company had previously filed for an $843 million IPO in November 2021 but postponed the plan. It is worth noting that PharmEasy's parent firm, API Holdings, was valued at $5.6 billion in its most recent funding round.
Pharmeasy Expansion Plans In 2023
PharmEasy, a leading health tech company, is forging ahead with its plans for expansion and growth. The board of its parent company, Api Holdings Limited, has approved a resolution to increase the authorised share capital of PharmEasy. Subject to equity shareholders' approval, this move will raise the authorised share capital to Rs 3,500 crore. The increased capital will be divided into 3,000 crore equity shares and 500 crore preference shares, pushing more people to purchase Pharmeasy unlisted shares.
Shareholders have been notified about this proposal and can vote on the matter until August 5. The company also intends to raise Rs 2,400 crore through a rights issue led by TPG and Temasek, which will enable the repayment of a loan from Goldman Sachs. Pharmeasy grey market price will become Rs 5 per share. The rights issue is expected to contribute to a $500 million-$600 million valuation range for PharmEasy. These strategic moves underscore the company's commitment to its future growth and reflect its determination to enhance its offerings and market presence.
Pharmeasy Unlisted Shares Details
Pharmeasy share price today stands at INR 18, making it relatively easy to invest. Although the company's valuation has reduced to 90% of its previous valuation, it doesn’t mean that API Holdings share price will keep going down in the future. If you buy unlisted shares at this price today, you might probably get profits in the future as the company has been getting funding regularly for the last few years.
Profit and Loss Summary Of Pharmeasy
Pharmeasy has experienced significant fluctuations in its Profit & Loss (P&L) over the past three years. In 2020, the company reported a revenue of INR 7,374 million, which increased to INR 23,607 million in 2021 and escalated to INR 57,810 million in 2022. While the revenue exhibited remarkable growth, expenses surged from INR 10,537 million in 2020 to INR 29,046 million in 2021 and ultimately reached INR 80,745 million in 2022.
Consequently, Pharmeasy's Earnings Before Depreciation, Interest, Taxes, and Amortisation (EBDITA) suffered losses, standing at INR -3,163 million in 2020, worsening to INR -5,439 million in 2021, and hitting INR -23,457 million in 2022. The company also incurred other costs, which amounted to INR 307 million in 2020 but turned into a significant expense of INR 8,438 million in 2022.
Considering the outstanding shares, the company had 2,387 million shares in 2020 and maintained the exact count in 2021 and 2022. Consequently, the Earnings Per Share (EPS) stood at INR -1.5 in 2020, decreased to INR -2.7 in 2021, and reached INR -7.3 in 2022.
In summary, Pharmeasy witnessed substantial growth in revenue over the past three years, but it also faced significant increases in expenses, resulting in negative EBITDA, PBT, and PAT figures. The company's financial performance showcased escalating losses throughout the period, as indicated by the negative EPS values. But this cannot just suggest that investing in Pharmeasy unlisted shares will not be profitable as the parent company API Holdings is getting funding of almost 2,500 crores from the Manipal Group.
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