Kerala Ayurveda
Kerala Ayurveda is an Ayurveda-based medicine and health care treatment services company that started operations in 1945 on the banks of the Periyar in Kochi. It operates as a modern company with a perfect blend of traditional techniques and modern technologies. The company was founded by KGK Panicker, a prominent ayurvedic teacher, but since 2006, Katra Holding has held 61 percent of the shares. Katra Holdings is owned by Ramesh Wangal, former Asia Pacific head of PepsiCo.
Debt reduction
For a long time Kerala Ayurveda was a company in the grip of heavy debt and low growth rate. But it is noticeable that there has been a significant reduction in the shares held by the promoters of the company in the last four financial quarters. In December 2022, 100 per cent shares of Kerala Ayurveda held by the promoter group were pledged. But at the end of the September 2023 quarter, the shares pledged by the promoter fell to 8 percent. Similarly, half of the loan taken from the promoter group to the company has been repaid in the meantime.
Notable factors
Prominent Malayali investor and fund manager Porinchu Veliyath has already pointed out that the future of Kerala Ayurveda is bright. The most critical factor is Kerala Ayurveda’s expansion efforts in America and its growth potential. Currently the company’s operations in the US are in the food segment. Also an academy has been started to teach Ayurveda course. Kerala Ayurveda gradually started clinics, through which the company’s products are also distributed. The products are licensed by USFDA.
In short, the marketing potential of Ayurveda-based lifestyle and food products in America is opening up for the company. Likewise, the promotion of Ayurveda under the Ayush department of the central government is also a positive factor. And with a compound annual growth rate of 11.8 percent, the global Ayurvedic products market is expected to grow to $1,000 crore (roughly Rs. 83,000 crore) by 2028.
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A surge in share prices
Kerala Ayurveda stock closed at Rs 214 last week. During the 52-week period, the high price of the stock was Rs.255 and the low price was Rs.75.70. Kerala Ayurveda shares have recorded gains of 48 percent in one month, 108 percent in six months, 157 percent in one year and more than 350 percent in three years.
Other share details
The total turnover of Kerala Ayurveda Company in the last financial year was 93 crores. Only a meager net profit was earned. Currently the market value of the company is 226 crores. Other economic factors are currently not at healthy levels. However, leading investor Porinchu Veliyam holds 3.2 percent or 336,000 shares.
(Notice: The above information is provided for educational purpose. This is not an investment recommendation. Investing in the stock market is subject to the possibility of profit and loss. Before taking any investment decision, you may seek the services of SEBI approved financial experts.)
