Unlisted Shares

Wide Product Range: While thermometers are their claim to fame, their product range extends far beyond including glass and digital thermometers, digital blood pressure monitors, Nebulizers, Pulse oximeter, Home care essentials, Diagnostics, Rehabilitations Aids, Medical Disposable etc.

Professional Network: Hicks strength lies in their extensive professional network. They collaborate with industry leaders like Cadila Pharmaceuticals Ltd., Sun Pharma, Pfizer Limited, Lupin, Cipla, and many others.

Customer Satisfaction: Customer satisfaction is Hicks utmost priority. With a network of over 3000 commercial dealers, They ensure immediate product availability and exceptional customer service.

Quality Assurance: As an ISO 9001:2008 certified company, they uphold rigorous quality control standards. Their products meet both national and international standards, including CE, BHS, EHS, BIS, and FDA.

Revenue Decline: Despite the increase in demand for medical products following COVID , revenue for the company has declined by approx. 50% with loss in market share. 

Investment Thesis: Founded in 1962, Hicks has established itself as a leading household name in thermometers for approximately 60 years. Despite this strong market presence, the company is currently facing challenges. The medical equipment industry in India is set to grow at a robust CAGR of 16.4% through 2030, driven by increased demand following COVID-19 and rising per capita healthcare expenditure. However, Hicks has experienced a 50% decline in revenue from operations, largely due to intensified competition from new market entrants offering superior products and enhanced customer satisfaction. This decline underscores the need for strategic improvements to capture growth opportunities and regain market share in a rapidly expanding sector.

Conclusion: Hicks is currently trading at a P/E multiple of 24x, while closely related peers are valued at a median multiple of 32.7x in the market. Given the company's 50% revenue decline and its lack of marketability, we have applied a 50% discount to the peer median P/E multiple. This adjustment yields a target value of Rs 1,517 per share for Hicks. In light of these factors and until there is evidence of stable topline growth, investors are advised to consider selling their holdings.