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About the Company
Opto Circuits India Limited (Opto) is engaged in the design, manufacturing and marketing of medical devices in invasive as well as
non-invasive segments. The product portfolio of the company includes pulse oximeters, patient monitoring systems, sensors, digital
thermometers, anesthesia and respiratory care equipments, stents, catheters and other innovative products. Some of the well known
brands marketed by the company are Criticare, Mediaid, Unetixs and Eurocor. Opto is currently a group of fourteen companies.
The manufacturing facilities are located in India, USA and also in Malaysia. In India it has eight manufacturing facilities and in US
one. The company has R&D facility in India, US and Germany. Opto sells its products in 56 countries across the world.
Investment Rationale
The patient monitoring equipment industry is expected to grow at a CAGR of 29% over 2010 and 2015. It is expected to be of more
than USD8bn by 2015. Global markets for anesthesia monitoring and external defibrillators are expected to reach USD 7.3bn and
USD2.4bn respectively by 2016. The global peripheral vascular equipment market is expected to reach USD 300mn by 2016. The
global market for coronary stents is expected to grow at a CAGR of 2.5% and is expected to exceed USD 6.5bn by 2016.
Hospitals in US and many other developed countries are reducing their expenses on staff and replacing them by monitoring systems.
We expect the company will benefit through this as a major part of its revenue comes through exports.
To cut its operation cost, Opto is shifting its manufacturing units from the US to India. In the current fiscal the company is planning to
have a capex of ` 1.50-2.00bn. Consolidation of manufacturing structure and manufacturing bases will be the key focus area of the
company for some time.
Valuation
At ` 198 per share the stock is trading at a P/E of 7.97x for FY12E and 5.68x for FY13E. On the basis of P/BV, it is trading at 2.01x
and 1.48x for FY12E and FY13E respectively. Consolidated revenue and PAT are expected to grow at a CAGR of 43% and 36%
respectively over FY10 to FY13E. We recommend to buy this scrip with a target price of ` 315 per share.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
About the Company
Opto Circuits India Limited (Opto) is engaged in the design, manufacturing and marketing of medical devices in invasive as well as
non-invasive segments. The product portfolio of the company includes pulse oximeters, patient monitoring systems, sensors, digital
thermometers, anesthesia and respiratory care equipments, stents, catheters and other innovative products. Some of the well known
brands marketed by the company are Criticare, Mediaid, Unetixs and Eurocor. Opto is currently a group of fourteen companies.
The manufacturing facilities are located in India, USA and also in Malaysia. In India it has eight manufacturing facilities and in US
one. The company has R&D facility in India, US and Germany. Opto sells its products in 56 countries across the world.
Investment Rationale
The patient monitoring equipment industry is expected to grow at a CAGR of 29% over 2010 and 2015. It is expected to be of more
than USD8bn by 2015. Global markets for anesthesia monitoring and external defibrillators are expected to reach USD 7.3bn and
USD2.4bn respectively by 2016. The global peripheral vascular equipment market is expected to reach USD 300mn by 2016. The
global market for coronary stents is expected to grow at a CAGR of 2.5% and is expected to exceed USD 6.5bn by 2016.
Hospitals in US and many other developed countries are reducing their expenses on staff and replacing them by monitoring systems.
We expect the company will benefit through this as a major part of its revenue comes through exports.
To cut its operation cost, Opto is shifting its manufacturing units from the US to India. In the current fiscal the company is planning to
have a capex of ` 1.50-2.00bn. Consolidation of manufacturing structure and manufacturing bases will be the key focus area of the
company for some time.
Valuation
At ` 198 per share the stock is trading at a P/E of 7.97x for FY12E and 5.68x for FY13E. On the basis of P/BV, it is trading at 2.01x
and 1.48x for FY12E and FY13E respectively. Consolidated revenue and PAT are expected to grow at a CAGR of 43% and 36%
respectively over FY10 to FY13E. We recommend to buy this scrip with a target price of ` 315 per share.
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