Docmode Health Technologies Limited is engaged in the business of offering integrated learning solutions through online and offline learning model to health care professionals and learners across the world, spanning the education value chain. The offline learning model comprises of conferences and workshops. The online courses content is reviewed and presented by the dedicated in-house content development team or by medical institution and medical associations (medical professional bodies) and subject matter experts/key opinion leaders who are focused to effectively transfer knowledge, as well as communicate and network with each other through the learning and professional networking platform. The Company mainly focus on providing learning solutions through online model. They believe that the tech based online learning model allows health care professionals and learners to engage in self-paced inclusive and individualized learning experience without the requirements of physical classroom present. The online learning model comprises notes, recorded videos, live conferences, workshops etc. In addition to the learning solutions, they provide a platform for inter-professional cross industrial learning via panel discussion and courses as well as take advantage of the performance assessment tools to better their clinical acumen in their daily medical practice. The Company is registered ISO 27001:2013 for Information Security Management System and have also received a ready status from Skill India. DocMode through knowledge marketing helps medico and pharma marketing companies engage healthcare professionals in a scientific manner, where the medical representatives are equipped with marketing collaterals, such interactive case studies, quiz formats, product monograms and product phonographs etc this helps the company to update and interact with the Healthcare professionals and improve the companies relationship with them. The www.docmode.org is a learning environment with resources and networking for 1,96,589 registered users, as on date of healthcare professionals such as doctors, physicians, surgeon and allied healthcare professionals such as dieticians, physiotherapist, nurses, technicans and paramedics. DocMode.org is a Platform as a Service (PAAS) with a learning management system and collaborating content (CPD and CME) in partnership with leading medical institutions, subject matter experts, key opinion leaders, and top professional bodies from across the world. Under this program they offer hybrid and blended learning programs such as offering training workshops, fellowships and observer ships along with publishing books and journals online. They believe that they have participation from global health care professional learners from countries in Asia, Middle East, Africa, Europe, etc. As per financial performance, Docmode Health Technologies Limited has posted total income / net profits of Rs 7.10 Cr / Rs 0.55 Cr (FY21), Rs 12.44 Cr / Rs 0.92 Cr (FY22), Rs 32.97 Cr / Rs 1.95 Cr (FY23) and Rs 23.67 Cr / Rs 1.36 Cr (upto Q2 FY24). So as per previous financials data, company has shown very good growth. But, trade receivables are above 25% of FY23 revenue and cashflow of last 3 years are negative. Company has posted an average EPS of Rs 6.84 and average RoNW of 70.01% for last three fiscals. Issue is priced at a P/BV of 2.15 as per NAV of 36.74 as on post issue. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 26.93, 12.75 and 9.13 respectively, which looks fairly priced. As per RHP, there are no listed peers. On BRLM's front, Fedex Securities Private Limited is associated with this SME IPO and handled 23 SME IPOs in last 4 year. From last 10 IPOs, two opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 10 IPOs, three are trading below issue price and remaining are trading above issue price. ( As on 22.01.24 ) As per financials, Docmode Health Technologies Limited has shown good results, RoNW is 56.06% and P/E is respectively 26.93, 12.75 and 9.13 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fairly priced, but higher trade receivables and negative cashflow raises some concerns. Company is in business of offering integrated learning solutions through online and offline learning model to health care professionals and learners across the world. Performance of BRLM is good. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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