Maximaa Systems Limited :: World's First & Only Proyurveda Company
Continuing the identification of multibaggers in Ayurvedic division, here is another company called Maximaa Systems Limited,
Maximaa Systems Limited (MSL) is the first and only company in Proyurveda (probiotics) segment in the World. Company got the technology from eminent scientist Dr.MS Reddy, Who had given the patents and taken the 10% stake in the company is an indication of confidence towards the bright future of proyurveda products. Mr. Reddy has been nominated for noble prize from USA along with Bill Clinton and Bill gates in the year 2012.
MSL used to operate in three divisions namely Systems Storage, IT services and Pharma division. But considering huge working capital requirements to run these divisions, management hived off System storage and IT service divisions in the current quarter. So that they can focus keenly on pharma division where business scalability and future growth exist. This is a good decision considering the size of the company. Management was approached for funds by equity participation and recently allotted 3.5 lakh shares @5.35rs.
What is all about this proyurveda and probiotics?
• Probiotics are live bacteria given to treat and prevent disease. This will not have any side effects.
• Probiotics is mixed with ayurveda to generate proyurveda medicines.
• Similarly Nutraceuticals is another product of the company; It is a food or food product that reportedly provides health and medical benefits, including the prevention and treatment of disease.
• Monopoly in 'Dairycal Plus' medicine, Natural dairy milk calcium helps in menopausal osteoporosis.
• Natural dairy milk calcium, derived from pure cow milk provides 100% bio-available calcium along with probiotics without any Gastro-intestinal side effects.
• Maximaa Proyurveda is the only Herbaceuticals Company to have Patented Herbal Range of Products in UNITED STATES, CHINA & INDIA.
• Company has all the necessary approvals from the regulatories , this is a highly regulated Industry.
Recent ActionsDuring the last Financial Year to take this new challenging business move forward, Company has completed a new manufacturing plant, the fund requirement of Rupees Sixteen Crores for the same as follows. Bank of India has extended Rs. 11.25 crores (Eleven crores ad twenty five lakhs) towards Building, Plant & Machinery and Working Capital and the balance of Rs. 5 crores (Five crores) is raised by way of Unsecured Loan. Company has constructed World Class Manufacturing facility for its Proyurveda range of products, which is as per WHO-GMP Guidelines having clean room environment to manufacture capsules, syrup, oil & gel.
Accordingly the company has commenced WHOGPM compliant facility at GIDC, Valsad for manufacturing pharma products. Though this division started nearly 3 years back itself, Until now the production facility was the constrain, but with this new facility sales will boost up fast. The entry in International Market will increase the revenue. The OTC segment will contribute heavily to the growth of the Company going forward. The commenced plant is sufficient to create sales of 250 crores per annum. Company owns patents for 120 proyurveda formulations in USA, India and China. Currently company products are marketed to Maharsthra, Orissa, Uttara Pradesh and Rajasthan.
MSL last week launched the online portal www.maximaaproyurveda.com to make the products available to the consumers across the country. Company product portfolio covers wide range of segments such as Skin Care, Hair Care, Liver Care, Bone care, Respiratory Care, Diet Care and Neuro care etc. Some of the products like MaxNRG, MaxARTHO and MaxPILO are available on Snapdeal, company is in talks with other e-commerce players for launching the products.
Currently this industry is in blossom stage and one can expect multibagger returns once the company starts delivering good results from next quarter onwards. Since it is a microcap and risk level is certainly high and regarding shareholding Promoters hold 35% of stake and the scientist family hold another 11% stake in the company.
Conclusion: Having patents, Starting the manufacturing plant, recruiting different positions across Mumbai & Ahmadabad, Only listed player in the segment and huge market for ayurvedic products. Considering these factors it is only a matter of time to join the company in multibagger league.
Registration Status with SEBI: I am not registered with SEBI under SEBI (Research Analysts) Regulations, 2014. As per the clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”.