Sahajanand Medical Technologies
FinMinutes Deep Business Model & Edge
Sahajanand Medical Technologies Limited (SMT) is an Indian medical device company that designs, develops, manufactures, and commercializes vascular interventional devices, structural heart therapies, and peripheral vascular products globally.
What this company actually does — full breakdown ▾
Sahajanand Medical Technologies Limited is an R&D-driven global medical device solutions provider specializing in cardiovascular and endovascular devices. Its product portfolio includes drug-eluting stents (DES) such as Supraflex Cruz, structural heart devices (occluders and TAVI systems like Hydra TAVI), balloon catheters, and peripheral vascular products. SMT operates three manufacturing facilities in India (Surat, Gujarat and Hyderabad, Telangana) and Thailand, selling its products across India, Europe, and over 70 rest-of-world countries through direct and distributor sales channels. In Fiscal 2026, consolidated revenue from operations reached ₹ 1,210.50 crore with a Restated Profit After Tax of ₹ 69.08 crore.
- Vascular Interventions — Drug-eluting stents (DES), bare metal stents, coronary balloon catheters, and imaging accessories.
- Structural Heart — Transcatheter aortic valve implantation (TAVI) systems and cardiac occluders.
- Other Products — Peripheral vascular products and medical device distribution accessories.
Global market presence with proprietary clinical trials (e.g. TALENT trial), CE mark approvals, integrated manufacturing across India and Thailand, and established direct sales networks across European markets.
The Offer
Follow the Money — Use of Proceeds
- Carry out the Offer for Sale by the Selling Shareholders and achieve the benefits of listing
Valuation at the Offer Price
The filing does not print a single headline multiple, so this one is ours: the upper band divided by the latest restated earnings per share — the same arithmetic the “Basis for the Offer Price” section performs. It is struck on pre-issue earnings; where the issue creates new shares, the post-issue multiple is computed in the workings below. This filing names no comparable listed peer, so there is no peer table and no relative multiple on this page. We would rather say that than assemble a peer set the issuer did not stand behind.
FinMinutes IPO Score — How It's Built
Transparent, deterministic, computed from the filing — not an opinion. Open any component below to see exactly what it measures and what it is worth. Components with no disclosed input are dropped from the weighting entirely rather than held at an invented neutral, because a constant inside a weighted average is not neutral — it quietly drags every score toward the middle. Weighted across 3 live components.
78% of the designed weighting had real data behind it on this issue. Not yet scored here: Filing Integrity, Valuation Vs Peers. A lower coverage figure does not mean a worse company — it means we are standing behind less of the picture, and you should read the findings below rather than the headline number.
How this is measured12%
Whether fresh capital actually enters the business. A predominantly offer-for-sale issue is marked down ONLY when the financials are weak. A profitable, cash-rich company selling down is treated as neutral, not penalised, because it does not need the money.
How this is measured32%
Driven by the models battery run on the filing's own restated numbers: the Piotroski fundamental tests (scored out of those we could actually run), the Altman Z-double-prime solvency zone, and the direction of profit across the disclosed period. It is not a single yes/no on last year's profit.
How this is measured28%
Starts at 100 and loses points for every material finding: 12 for a flagged finding, 4 for a noted one. Two kinds feed it. DERIVED findings are computed from the filed numbers against stated thresholds — operating cash negative while profit is positive, related-party revenue above 15% of total, revenue rising while profit falls, goodwill above 30% of net worth, receivables growing more than 1.3x faster than sales, cash below half of short-term debt. Those are reproducible: the same filing gives the same answer every time, and the rule is printed beside the finding. READ findings come from the forensic sweep of the notes. Contingent liabilities, related-party intensity, customer concentration, litigation, auditor qualifications, statutory dues, promoter funding. Findings that record the ABSENCE of a problem — no litigation pending, an unmodified audit opinion — deduct nothing. This is the component our forensic read drives directly, and it moves most between companies.
3-Year Financial & Growth Trend
| Metric | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue (₹ Cr) | 1210.5 | 1024.88 | 901.6 |
| Net Profit (₹ Cr) | 69.08 | 25.15 | -7.35 |
| PAT Margin | 5.71% | 2.45% | -0.82% |
Revenue Breakdown
- Europe: 38.66%
- Rest of World (ROW): 35.21%
- India: 26.13%
Why the numbers moved, in management’s own words
Taken from the Management’s Discussion and Analysis section of the filing. A number tells you what happened; this is the company’s explanation of why, and whether it calls the cause temporary or structural.
| Metric | Move | Management's stated reason | Type |
|---|---|---|---|
| Revenue from operations (FY26 vs FY25) | ↑ 18.1% | Revenue from operations increased primarily due to higher sales volumes across Vascular Intervention and Structural Heart devices, with expanding international market penetration in Europe and ROW. | Structural |
| Cost of materials consumed (FY26 vs FY25) | ↑ 18.2% | Cost of materials consumed increased in line with higher manufacturing production volumes of stents, catheters, and structural heart implants. | Structural |
| Employee benefits expense (FY26 vs FY25) | ↑ 20.3% | Employee expenses increased due to sales team expansion across European direct sales subsidiaries, annual increments, and higher R&D personnel costs. | Structural |
| Restated PAT (FY26 vs FY25) | ↑ 174.7% | Restated net profit expanded due to higher top-line sales, operational leverage, and gross margin improvements across direct European sales channels. | Structural |
| Operating cash flow (FY26 vs FY25) | ↑ 43.1% | Cash generated from operations increased to ₹ 105.19 crore in FY26 from ₹ 73.52 crore in FY25 due to higher profit before tax and working capital management. | Structural |
| Revenue from operations (FY25 vs FY24) | ↑ 13.7% | Revenue expanded driven by higher adoption of Supraflex Cruz DES and Structural Heart occluder/TAVI devices in Europe and ROW. | Structural |
Headwinds
- Medical Device Price Controls and NPPA Ceiling Price Regulations sector persistent
Mandatory price caps on drug-eluting stents in India and regulatory reimbursement controls in overseas markets limit unit price realization. - High Reliance on Imported Raw Materials and Components company persistent
Raw material procurement is exposed to foreign exchange fluctuations and global supply chain disruptions, though vertical integration efforts at Hyderabad facility aim to reduce import dependence.
Tailwinds
- Global Shift Toward Minimally Invasive PCI Procedures and Structural Heart Therapies macro
Rising incidence of coronary artery disease, cath lab infrastructure expansion, and clinical validation of SMT's Supraflex Cruz and Hydra TAVI drive sustained global adoption.
| Facility | Period | Utilisation |
|---|---|---|
| Surat Facility - Stents | FY26 | 80.5% |
| Surat Facility - Catheters | FY26 | 91.7% |
| Surat Facility - TAVI Devices | FY26 | 19.8% |
| Surat Facility - Occluders | FY26 | 34.7% |
Applying, and Who Handles the Allotment
Check allotment status on the registrar’s own portal → We link the registrar directly rather than mirroring the form.
Deep Financials
Revenue, EBITDA and profit are what every listing site prints. Below are the full restated statements as disclosed, the ratios we compute from them, and a DuPont decomposition of the return on equity. A prospectus carries three years, not ten — that is the document’s ceiling, and within it we go as deep as it allows.
Income StatementThe profit and loss as filed, then what we derive from it — kept apart.
Statutory order, exactly as restated in the filing. Finance cost and depreciation sit inside Total Expenses under Ind AS, which is why they are listed among the expense lines here rather than below the total. The expense rows sum to the total. Rows the filing does not disclose separately are omitted rather than left blank.
| Income Statement — as filed (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue from Operations | 1,210.50 | 1,024.88 | 901.60 |
| Other Income | 8.22 | 11.08 | 6.99 |
| Total Income | 1,218.73 | 1,035.96 | 908.59 |
| Cost of Materials Consumed | 258.23 | 218.44 | 242.83 |
| Purchases of Stock-in-Trade | 45.75 | 51.46 | 28.93 |
| Changes in Inventories | -10.01 | -19.49 | -39.98 |
| Employee Benefit Expense | 351.79 | 292.34 | 253.94 |
| Finance Cost | 24.43 | 20.73 | 19.44 |
| Depreciation & Amortisation | 74.16 | 62.53 | 64.50 |
| Other Expenses | 394.08 | 354.12 | 305.83 |
| Total Expenses | 1,138.43 | 980.12 | 875.50 |
| Profit Before Exceptional Items and Tax | 80.29 | 55.84 | 33.09 |
| Exceptional Items | 0.00 | 15.03 | 0.00 |
| Profit Before Tax | 80.29 | 40.81 | 33.09 |
| Tax Expense | 11.21 | 15.66 | 40.45 |
| Profit After Tax | 69.08 | 25.15 | -7.35 |
| Other Comprehensive Income | 66.49 | -1.03 | -0.95 |
| Total Comprehensive Income | 135.57 | 24.12 | -8.30 |
| EPS - Basic | 6.67 | 2.09 | -1.31 |
| EPS - Diluted | 6.48 | 2.01 | -1.31 |
Balance SheetWhat the company owns, owes, and is worth on paper.
| Balance Sheet (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Share Capital | 9.81 | 9.76 | 9.75 |
| Reserves & Surplus | 685.65 | 555.97 | 530.34 |
| Net Worth | 695.46 | 565.73 | 540.09 |
| Long-term Borrowings | 49.48 | 35.83 | 30.10 |
| Short-term Borrowings | 220.04 | 189.13 | 145.17 |
| Total Borrowings | 269.53 | 224.96 | 175.27 |
| Trade Payables | 110.52 | 103.99 | 82.14 |
| Current Liabilities | 488.79 | 435.82 | 350.79 |
| Total Liabilities | 574.14 | 504.43 | 404.26 |
| Property, Plant & Equipment | 239.03 | 181.19 | 179.26 |
| Capital Work in Progress | 7.52 | 5.66 | 13.44 |
| Intangible Assets | 18.42 | 30.54 | 43.79 |
| Investments | 22.45 | 0.00 | 0.00 |
| Inventories | 309.09 | 266.85 | 252.26 |
| Trade Receivables | 286.26 | 263.48 | 215.17 |
| Cash & Equivalents | 74.09 | 100.52 | 71.67 |
| Current Assets | 808.78 | 698.71 | 596.40 |
| Total Assets | 1,276.43 | 1,094.90 | 970.58 |
Cash FlowWhere the cash actually went. Often the most honest statement of the three.
| Cash Flow (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Cash from Operating Activities | 105.19 | 73.52 | 41.10 |
| Capital Expenditure | 97.98 | 49.00 | 42.28 |
| Net Cash from Investing Activities | -130.03 | -48.94 | -42.47 |
| Net Cash from Financing Activities | -12.04 | 5.77 | 13.13 |
| Net Change in Cash | -36.88 | 30.35 | 11.76 |
Ratio AnalysisProfitability, leverage, liquidity, efficiency and earnings quality — computed by us.
Every ratio below is computed by us from the line items the company disclosed — not copied from anywhere. The arithmetic is standard; the point is that somebody actually did it. Blank cells mean the filing did not disclose the inputs, and we would rather show a gap than invent a number.
| Ratio | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profitability | |||
| EBITDA Margin (%) | 14.7 | 10.5 | 12.9 |
| EBIT Margin (%) | 8.6 | 4.5 | 5.8 |
| PAT Margin (%) | 5.7 | 2.5 | -0.8 |
| Return on Equity (%) | 9.9 | 4.4 | -1.4 |
| Return on Capital Employed (%) | 10.9 | 5.9 | 7.3 |
| Return on Assets (%) | 5.4 | 2.3 | -0.8 |
| Leverage | |||
| Debt / Equity (x) | 0.39 | 0.4 | 0.32 |
| Net Debt / EBITDA (x) | 1.09 | 1.14 | 0.89 |
| Interest Coverage (x) | 4.29 | 2.24 | 2.7 |
| Liquidity | |||
| Current Ratio (x) | 1.65 | 1.6 | 1.7 |
| Quick Ratio (x) | 1.02 | 0.99 | 0.98 |
| Efficiency | |||
| Asset Turnover (x) | 0.95 | 0.94 | 0.93 |
| Receivable Days | 86 | 94 | 87 |
| Inventory Days | 384 | 389 | 397 |
| Payable Days | 137 | 152 | 129 |
| Cash Conversion Cycle (days) | 333 | 331 | 355 |
| Quality of Earnings | |||
| Operating Cash Flow / PAT (x) | 1.52 | 2.92 | -5.59 |
| Accruals Ratio (%) | -2.8 | -4.4 | -5 |
| Capex / Depreciation (x) | 1.32 | 0.78 | 0.66 |
| Inventory and payable days are measured against cost of goods (materials consumed + purchases of stock-in-trade + change in inventories). Receivable days against revenue. | |||
DuPont DecompositionWhy the return on equity is what it is: margin, efficiency, or leverage.
A headline return on equity tells you what. The DuPont decomposition tells you why — whether the return is earned through margin, through asset efficiency, or simply through leverage. Two companies can post an identical ROE for opposite reasons, and only one of them is safe.
| Component | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Margin (PAT / Revenue) | 5.7% | 2.5% | -0.8% |
| Asset Turnover (Revenue / Assets) | 0.95x | 0.94x | 0.93x |
| Equity Multiplier (Assets / Net Worth) | 1.84x | 1.94x | 1.8x |
| = Return on Equity | 9.9% | 4.4% | -1.4% |
| Tax Burden (PAT / PBT) | 0.86x | 0.62x | -0.22x |
| Interest Burden (PBT / EBIT) | 0.77x | 0.88x | 0.63x |
| Operating Margin (EBIT / Revenue) | 8.7% | 4.5% | 5.8% |
Computed from the disclosed statements. Where the filing omits an input, the row is left blank rather than estimated.
Quality of EarningsWhat the statements say when you read them against each other.
What the statements say once you read them against each other. These are observations, not verdicts — every one is arithmetic on the numbers the company itself disclosed, and each is stated so you can go and check it in the filing.
- Operating cash flow was 1.52x reported profit in FY26. Earnings are converting into cash, which is what you want to see and frequently is not the case.
Forensic ModelsBeneish, Altman, Piotroski and the Montier C-score — plus our own final-year check.
Beneish M-Score
M = -2.54An eight-variable model built to detect earnings manipulation, and built to run on exactly two consecutive years — which is what a prospectus gives us. It belongs here more than anywhere: a company about to list has the maximum possible incentive to have dressed up the very years it is about to show you. A score above −1.78 is the threshold at which the model says the accounts merit a closer look. It is a screening signal, not an accusation, and it was calibrated on listed companies elsewhere. Read the eight components, not just the total.
| Component | Value | What it captures |
|---|---|---|
| DSRI Days Sales in Receivables Index (Receivables_t / Sales_t) / (Receivables_t-1 / Sales_t-1) | 0.92 | Above 1 means receivables grew faster than sales. Revenue may be being recognised ahead of collection. |
| GMI Gross Margin Index GrossMargin_t-1 / GrossMargin_t | 1 | Above 1 means margins deteriorated. A firm with worsening prospects has more incentive to manipulate. |
| AQI Asset Quality Index AQ_t / AQ_t-1, where AQ = 1 - (CurrentAssets + PPE) / TotalAssets | 0.912 | Above 1 means a rising share of assets is soft (neither current nor fixed) — capitalised costs can hide here. |
| SGI Sales Growth Index Sales_t / Sales_t-1 | 1.181 | Growth is not manipulation. But high-growth firms face more pressure to keep the streak going. |
| DEPI Depreciation Index DepRate_t-1 / DepRate_t, where DepRate = Dep / (Dep + PPE) | 1.084 | Above 1 means assets are being depreciated more slowly — a quiet way to lift reported profit. |
| SGAI SG&A Index (SGA_t / Sales_t) / (SGA_t-1 / Sales_t-1), SGA proxied as employee cost + other expenses | 0.977 | A proxy, because filings rarely break out SG&A cleanly. Read it as a direction, not a precise figure. |
| LVGI Leverage Index Leverage_t / Leverage_t-1, where Leverage = (CurrentLiab + LongTermDebt) / TotalAssets | 0.979 | Above 1 means leverage rose. Debt covenants create pressure to hit numbers. |
| TATA Total Accruals to Total Assets (PAT - CashFromOperations) / TotalAssets | -0.0283 | The gap between reported profit and cash generated. The single heaviest term in the model — and the one that catches profit that never became cash. |
M = -2.54, below the −1.78 threshold. The model does not flag these accounts.
Altman Z″-Score (emerging markets)
Z″ = 8.47 · SafeA distress-prediction model. We use the Z″ variant deliberately: the original Z was calibrated on American manufacturers and misleads badly on Indian services companies. Above 2.6 is the safe zone, 1.1 to 2.6 is grey, below 1.1 is the distress zone. Like every model of its kind it is a screen, not a prophecy.
| X1 — Working Capital / Total Assets | 0.251 |
| X2 — Reserves / Total Assets | 0.537 |
| X3 — EBIT / Total Assets | 0.082 |
| X4 — Net Worth / Total Liabilities | 1.211 |
| Z″ = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4 | 8.47 |
X2 is meant to read retained earnings. The filing reports Other Equity, which also holds securities premium paid in by investors, so X2 here runs on reserves and reads higher than true retained earnings would. The more premium the company has raised before listing, the more Z″ is flattered.
Piotroski F-Score (adapted)
6 / 8Nine yes-or-no tests of fundamental strength — except we run eight. One of the original nine asks whether the company issued new shares, which is plainly absurd to ask of a company whose entire purpose at this moment is to issue shares. We drop that test, and we would rather tell you that than quietly fudge it.
- ✓Positive return on assets
- ✓Positive operating cash flow
- ✓Return on assets improving
- ✓Cash flow exceeds profit (quality of earnings)
- ✗Long-term leverage decreasing
- ✓Current ratio improving
- ✗Gross margin improving
- ✓Asset turnover improving
Montier C-Score
4 of 6 signsSix yes-or-no signs that reported profit may be running ahead of the business, from James Montier’s 2008 screen, read here for FY26 against FY25. Each is a direction in the statements, not a judgement. Several together are a reason to read the accounting policies and notes closely; none on its own means anything is wrong, and growing companies trip some of them honestly.
- ●Gap between profit and operating cash flow widening · PAT − CFO: ₹-48.4 cr in FY25, ₹-36.1 cr in FY26
- ○Receivable days rising · 94 days in FY25, 86 days in FY26
- ○Inventory days rising · 389 days in FY25, 384 days in FY26 (on cost of goods)
- ●Other current assets rising against revenue · 6.6% of revenue in FY25, 11.5% in FY26 (current assets less cash, receivables and inventory)
- ●Depreciation falling against fixed assets · 34.5% of net block in FY25, 31.0% in FY26
- ●Total assets growing more than 10% a year · 16.6% in FY26
Ratios Nobody Prints
- Contingent liabilities / Net worth: 1.5%
Contingent liabilities of 10.76 cr against a net worth of 695.46 cr — 1.5% of what the company is worth on paper. These are obligations that sit off the balance sheet but could land on it. What they consist of matters as much as the size: a corporate guarantee to a subsidiary is a different animal from a disputed tax demand, and the filing says which. - Related-party revenue / Total revenue: 0%
0% of revenue in FY26 came from entities connected to the promoters. Revenue you sell to yourself is not the same as revenue you won in the market. - Cash / Short-term borrowings: 0.34x
Short-term borrowings of 220.04 cr against cash of 74.09 cr. Debt that must be refinanced within a year is only comfortable while lenders stay comfortable. - Promoter remuneration / PAT: 0.7%
Managerial remuneration to the promoter group was 0.50 cr against a profit of 69.08 cr. This is a legitimate cost — but it is also a route by which value leaves a company before it ever reaches a minority shareholder.
What the Price RequiresThe profit the offer price needs, at three hurdle rates. A restatement of the price, not a view on it.
At the upper band of ₹344.00, the market value is ₹3,375 cr. A buyer who wants a given return each year from a business that never grows needs annual profit of market value × that return. The three rates are round hurdle rates, not this company’s cost of capital, so pick the one that is yours. The years columns assume profit compounds from the FY26 figure and the price stands still. None of this is a forecast, a fair value or a target.
| Hurdle rate | Profit the price needs | × FY26 profit | Years at 15% growth | Years at 25% growth |
|---|---|---|---|---|
| 10% a year | ₹337 cr | 4.9x | 11.3 | 7.1 |
| 12% a year | ₹405 cr | 5.9x | 12.7 | 7.9 |
| 14% a year | ₹472 cr | 6.8x | 13.8 | 8.6 |
- Earnings yield at the upper band: 2.05% (FY26 profit ÷ market value).
- Free cash flow yield: 0.21% (operating cash flow less capital expenditure, ₹7.2 cr, ÷ market value).
The Formula NotebookEvery number above, with the working shown. Check us.
Every number we publish, with the working shown. The formula, the same formula with this company’s actual figures put into it, the answer, and what it is for. Check us. That is the point.
PAT ÷ Net Worth69.08 ÷ 695.46What the company earned on the money shareholders have in it. The headline measure of return — and the one the DuPont section takes apart.
EBIT ÷ (Net Worth + Total Borrowings)104.72 ÷ (695.46 + 269.53) = 104.72 ÷ 964.99Return on ALL the capital in the business, borrowed as well as owned. Unlike ROE, it cannot be flattered by taking on debt.
EBITDA ÷ Revenue178.88 ÷ 1,210.50Operating profitability before the effects of debt, tax and depreciation. What the business earns from the act of trading.
Total Borrowings ÷ Net Worth269.53 ÷ 695.46How much the company has borrowed against what it owns. High is not automatically bad — ask whether the borrowing is being serviced comfortably.
EBIT ÷ Finance Cost104.72 ÷ 24.43How many times over operating profit covers the interest bill. Below about 2x, a meaningful share of what the business earns is going to lenders rather than owners.
(Trade Receivables ÷ Revenue) × 365(286.26 ÷ 1,210.50) × 365How long the company waits to be paid. Rising receivable days mean revenue is being booked faster than it is collected — which is where a great many accounting problems begin.
Inventory Days + Receivable Days − Payable Days384 + 86 − 137How long cash is tied up in the operating cycle before it comes back. The longer it is, the more working capital the business must fund.
Cash from Operations ÷ PAT105.19 ÷ 69.08Did the profit turn into cash? Profit is an opinion; cash is a fact. When this sits well below 1x for long, the two are drifting apart, and the filing is where you find out why.
(PAT − Cash from Operations) ÷ Total Assets(69.08 − 105.19) ÷ 1,276.43 = -36.11 ÷ 1,276.43The share of reported profit that exists on paper rather than in the bank. It is also the heaviest single term in the Beneish model, for good reason.
Price × Post-issue Shares₹344.00 × 98,100,000 sharesWhat the whole company is being valued at, if the issue prices at the top of the band.
Market Cap + Total Borrowings − Cash3,374.64 + 269.53 − 74.09What it would actually cost to buy the whole business: you take on its debt and you get its cash. This is the number a buyer cares about, and it is the reason a P/E on its own can mislead.
Enterprise Value ÷ EBITDA3,570.08 ÷ 178.88The multiple that includes debt. Two companies on the same P/E — one debt-free, one heavily borrowed — are not the same investment, and only this number tells you so.
Market Cap ÷ PAT3,374.64 ÷ 69.08The familiar multiple. Useful, but blind to debt — read it alongside EV/EBITDA, never instead of it.
Offer price ÷ weighted average cost of acquisition₹344.00 ÷ ₹269.22Every offer document must disclose the weighted average cost of acquisition for shares issued or transferred over the preceding one, eighteen and thirty-six months. Early capital takes real risk and a large multiple built over years is ordinary. A steep step-up inside a short window is the one that deserves a second look. What it means is yours to decide; the arithmetic is the filing’s own.
EBIT × (1 − tax rate) ÷ (Net Worth + Debt − Cash)NOPAT ÷ Invested CapitalWhat the business earns on the capital actually at work in it. We do not compare this to a cost of capital: that would need a beta, an unlisted company has none, and inventing one would be theatre.
Latest full-year PAT ÷ market value₹69.08 cr ÷ ₹3,374.64 crThe P/E turned upside down: what each rupee of market value earns today. Set it against what you could earn elsewhere; the gap is what growth has to make up.
(Operating cash flow − capital expenditure) ÷ market value₹7.21 cr ÷ ₹3,374.64 crCash left after the company pays for its own investment, against the price of the whole company. Profit can be shaped by accounting choices; this is harder to shape.
P/E ÷ trailing PAT growth (%)48.85 ÷ 174.7%PEG was designed for FORWARD growth. This one uses TRAILING growth, because that is all a prospectus gives us — and the final year before an IPO is very often the best year the company will have for a while. A low PEG here may say more about the timing of the filing than about the price. We show it because it was asked for; we show the growth denominator beside it so it cannot mislead you quietly.
Workspace
The numbers are already loaded. Move the offer price and watch every multiple move with it. Set your own growth and margin and see what they imply two years out. These are your assumptions, not our forecast — we have no view on what this company will earn, and the moment we published one we would be doing something we are not registered to do. What we can do is put the arithmetic in front of you and get out of the way.
Price defaults to the top of the band. Margin defaults to what the company actually reported in FY26.
Projections are arithmetic on the inputs you typed. They are not a forecast, not a recommendation, and not a view on whether this offer is worth taking. Educational only.
Institutional Alpha: DRHP Deep Dive
According to the F&S Report, the global cardiovascular medical devices market is driven by expanding prevalence of ischemic heart disease, increasing PCI procedure volumes, and adoption of next-generation drug-eluting stents and structural heart therapies.
100% Secondary Offer for Sale with Zero Primary Growth Capital
The IPO is structured entirely as an Offer for Sale of 13,822,116 Equity Shares by Promoter Shree Hari Trust, Dhirajkumar Vasoya, Samara Capital, Kotak Pre-IPO Fund, and NHPEA Sparkle. The company receives no fresh issue proceeds.
Source: p.1, p.67, p.131Global Commercial Reach and Clinical Evidence Leadership
SMT markets its Class III cardiovascular devices across 70+ countries, backed by 75 clinical studies and published trial results in top journals like The Lancet and NEJM for its flagship Supraflex Cruz drug-eluting stent.
Source: p.250, p.252Vertical Integration Strategy at Hyderabad MDP Facility
SMT is expanding vertical integration at its Hyderabad facility to manufacture in-house medical tubing, balloon catheters, and delivery systems, supported by MISRID grant-in-aid schemes to reduce import dependence and expand gross margins.
Source: p.262, p.272Shareholding, Syndicate & Leadership
Leadership & Skin in the Game
Leadership: Bhargav Dhirajlal Kotadia
Litigation: ₹ 131.97 crore in tax, regulatory, and legal proceedings against the Company, along with ₹ 24.85 crore against Directors and ₹ 6.10 crore against Promoters.
Auditor / RPT Flags: None; Auditor examination reports contain unmodified opinions for FY24-FY26.
Cardiovascular Devices Vitals
The operating metrics that actually price this business — the ones a generic IPO page skips. Straight from the filing.
| Metric | Value | Detail |
|---|---|---|
| Stents Annual Production Capacity (Surat) | 900,000 units | annual stents manufacturing capacity in FY26 (780,000 in FY24) |
| Stents Capacity Utilisation % | 78.31% | capacity utilisation rate for stents in FY26 (82.39% in FY25) |
| Vascular Intervention Revenue Share | 61.14% | share of FY26 revenue from operations (₹ 740.09 crore) |
| Structural Heart Revenue Share | 16.77% | share of FY26 revenue from operations (₹ 203.06 crore) |
Source: p.48, p.140, p.250
🔍 Forensic Findings — What the Footnotes Say
Findings from across the filing — the notes, MD&A, related-party disclosures, contingent liabilities, CARO and litigation, alongside the risk section itself. Each carries where it was found, so you can see which were buried and which were disclosed. Findings marked derived are computed from the filed numbers against a stated rule, shown beside them.
In FY 2022-23, Income Tax Department conducted a search under Section 132 on SMT and former subsidiary VCL, resulting in pending tax appeals and contingent tax liabilities of ₹ 4.75 crore.
p.55, p.433Trade receivables stood at ₹ 286.26 crore as of March 31, 2026 (83 days), with bad debts written off amounting to ₹ 18.56 crore in FY26.
p.36, p.362Company filed a suo moto adjudication application before ROC Gujarat regarding non-compliance under Section 42(4) for private placement proceeds utilization prior to filing Form PAS-3.
p.45, p.452The IPO consists 100% of an Offer for Sale of 13,822,116 Equity Shares with zero primary issue proceeds received by the Company.
p.1, p.67₹ 131.97 crore in tax, regulatory, and legal proceedings against the Company, along with ₹ 24.85 crore against Directors and ₹ 6.10 crore against Promoters.
p.1, p.111, p.337, p.450Short-term borrowings of ₹220.04 cr against cash of ₹74.09 cr. Debt that must be refinanced within a year is comfortable only while lenders stay comfortable.
rule: cash < 0.5x short-term debtCompany's Claims vs Reality
We stress-test each claim against the filing's own data.
RHP confirms commercial sales across 70+ countries, with revenue from operations reaching ₹ 1,210.50 crore in FY26.
p.250, p.342Filing discloses past Income Tax search activity, pending tax disputes of ₹ 10.76 crore, and suo moto ROC compounding for PAS-3 delay.
p.45, p.55, p.433Proprietary SWOT — Company-Specific
Strengths
- Global commercial footprint across 70+ countries backed by strong clinical trial data (TALENT trial) and CE mark accreditations.
- Vertically integrated manufacturing facilities across India and Thailand offering cost efficiency.
Weaknesses
- High reliance on imported raw materials and components accounting for 77.18% of total purchases in FY26.
- Working capital lock-up in trade receivables (83 days in FY26) and inventory (138 net working capital days).
Opportunities
- Expanding global adoption of structural heart therapies including TAVI (Hydra TAVI) and next-generation drug-eluting stents.
- Deeper market penetration across direct sales channels in Europe and emerging markets.
Threats (material, not boilerplate)
- Price caps and regulatory margin controls on drug-eluting stents in India and key export markets. risk_section
Why it matters: Government price controls on medical devices directly compress product realization and gross margins.
Allotment Status
Check your allotment on the registrar's portal → Registrar: MUFG Intime India
Allotment is decided by the registrar, not by us and not by the exchange. In an oversubscribed retail book, allotment is by lottery, so a large application does not improve your odds beyond one lot. If money stays blocked after the refund date, the mandate expiry (30 Nov 2026) is the date to raise with your bank.
Analyst Q&A: Burning Questions
Facts from the filing. No recommendation — that layer arrives once our Research Analyst registration is live.
Will SMT receive any proceeds from the public offer?
No. The offer is 100% an Offer for Sale of up to 13,822,116 Equity Shares by Selling Shareholders including Shree Hari Trust, Samara Capital, Kotak Pre-IPO Fund, and NHPEA Sparkle Holding. All proceeds go to the selling shareholders.
p.1, p.67, p.131What drove revenue growth and net profit recovery in Fiscal 2026?
Consolidated revenue from operations grew by 18.11% to ₹ 1,210.50 crore in FY26, while Restated PAT increased to ₹ 69.08 crore (up from ₹ 25.15 crore in FY25), supported by higher sales volume across European and Rest-of-World distributor markets and operating leverage.
p.342, p.421, p.425What is the status of the Income Tax search and contingent tax liabilities?
The Income Tax Department conducted a search under Section 132 in FY23, resulting in pending appellate proceedings. SMT disclosed total contingent liabilities of ₹ 10.76 crore as of June 30, 2026, including ₹ 4.75 crore in income tax matters.
p.55, p.433Reading the Offer Structure
100% offer for sale — and the company does not appear to need the cash.
A high offer-for-sale share is not automatically a concern. On the disclosed numbers this company is profitable and not heavily borrowed, so the listing reads as an exit route for existing shareholders and a route to a public market rather than a funding exercise. Large, cash-generative companies routinely list this way.
What Earlier Investors Paid
Early capital takes real risk and is fairly rewarded for it — a large multiple built over many years is normal. What deserves a closer look is a steep step-up in a short window: a round priced cheaply only months before the offer.
| Shareholder | Priced at | When | vs IPO price |
|---|---|---|---|
| Samara Capital Markets Holding Limited | ₹42.52 | 2016-12-27 | 8.1x |
| An early round from roughly 10 years ago, at roughly 8.1x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Kotak Pre-IPO Opportunities Fund | ₹269.22 | 2023-02-07 | 1.3x |
| Allotted below the band — 1 entries | |||
| SMT ESOP Trust | ₹365.00 | 2026-09-29 | as disclosed |
The 1 allotments listed under “allotted below the band” are shown at their as-disclosed per-share price. They are not adjusted for any later bonus issue or share split, so where a company has issued bonus shares the raw multiple understates the true return and can even read as a loss when none was made. We show them as filed and decline to compute a misleading multiple.
Prices are as stated in the filing’s allotment history and are not adjusted for later bonus issues or share splits. Where a company has issued bonus shares, the multiples above understate the true return and can even read as losses. Adjusting for that is on our list; until it is done we would rather show the raw disclosure and tell you its limits than publish a confident number that is wrong.
Lock-in Expiry Calendar
Shares held before the IPO cannot be sold immediately; they unlock in tranches. When a tranche unlocks, more shares become eligible to trade. Retail investors are frequently caught unaware by these dates. The schedule below follows from the listing date; quantities are shown only where the filing discloses them.
- 23 Apr 2028Minimum Promoters' Contribution18 months
- 23 Apr 2027Promoters' Shareholding in Excess of Minimum Contribution6 months
- 23 Apr 2027Entire Pre-Offer Equity Share Capital6 months
- 22 Nov 2026Anchor Investor Portion (50%)30 days
- 21 Jan 2027Anchor Investor Portion (50%)90 days
An unlock means more shares may be sold — not that they will be, and not that the price will move. We state the dates; what you do with them is your call.
Educational, grounded entirely in the company's filings (DRHP/RHP). Not investment advice. FinMinutes does not provide buy/sell recommendations.
