Word of Caution for Pharmeasy Investors -&nbsp; Pharmeasy has come to PreIPO market in the first week of November. Pharmeasy has raised funds at ₹54/share in July,2021 and ₹68/share on 20th oct,2021. In Oct, company has seen valuation of ₹5.8 billion $ in PreIPO round.&nbsp; At present, share is trading anywhere between ₹105 - ₹130 which is 1.5x - 2.0x of last month valuations.&nbsp; DRHP of company is filed on 11th Nov,2021 giving us insights about the company. Let's analyze it briefly -&nbsp; Issue Size - ₹6,250 crNew Issue Size -&nbsp; ₹4,688 crOffer for Sale - ₹1,599 crPreIPO Placement on 18th Nov - 2,635 cr New Issue Size -&nbsp; ₹2,053 crOffer for Sale - ₹1,599 crTotal Issue Size Left for Subscription - ₹3,652 cr As per Livemint, company is going for IPO at 9 Billion $ Valuation which is equivalent to ₹68,000 cr&nbsp; Standalone results as per March FY21&nbsp;Total Revenue from Operations =&gt; ₹2,335.27 crTotal Loss =&gt; ₹641.3 crCashflow from Operations =&gt; - 552.3 cr This means on every 1 cr sale of medicine, company incur a loss of 27.46 Lacs.&nbsp; Consolidated Results (including all subsidiaries) as per March,2021Total Revenue =&gt; ₹4,363.2 cr&nbsp;Total Consolidated Loss (including all subsidiaries) =&gt; ₹1,548.5 crTotal Debt on 30th June,2021 =&gt; ₹2,772.61 cr This means on every 1 cr sale of medicine, lab tests (including all subsidiaries), company incur a loss of 35.49 Lacs.&nbsp; Chasing loss making companies at such steep valuations can't be justified by any means. This is becoming a norm now when all affluent investors are trying to dump the shares to Retail investors at crazy valuations.&nbsp; We have always ask investors to exit stocks in 2 conditions - Once when company fails to grow and second when the valuations is extremely high (10 Rs. thing getting sold at 30 - 35 Rs). Pharmeasy for us comes in latter category.&nbsp; Please be cautious while investing in Pharmeasy stocks.

Pharmeasy share has entered the PreIPO Market and managed to raise the funds at ₹54/share in July,2021 and ₹68/share on 20th oct,2021.