Wellness Forever Medicare Ltd IPO

They Key points are- 

• Strengths

  1. The company has a high inventory turnover which reduces the holding cost which in turn increases the working capital efficiency
  2. Customer loyalty programs and great customer service
  3. Due to vertical integration and economies of scale, they have a high gross margin
  4. Discounts for customers which make the store more attractive to more people
  5. E-commerce presence that provides auto refills, discounts and a wide range of products
   

• Weaknesses

  1. They have a very limited presence, concentrated mainly in Maharashtra
  2. E-commerce segment lacks in profitability to date
  3. The company has difficulty in catering to the Tier 2 cities due to higher turnaround time

• Opportunities

  1. The modern pharmacy retail is expected to have a growth CAGR of 25% in next 5 years, growing significantly faster than many other segments
  2. The brick and mortar stores have a certain edge over e-pharmacy in adopting an omni-channel approach because they have already established network of stores which can supply the localities and act as a place to stock more inventory
   

• Threats

  1. As the company is not very technologically advanced, there is always a chance that mismanagement of the inventory could occur which would in turn lead to a low fulfillment rate
  2. High amount of competition from established e-pharmacy companies