Fischer Medical Ventures Approves 1:10 Stock Split to Make Shares More Affordable for Investors

Mumbai, 28 July 2025: In a key decision aimed at improving share accessibility and market participation, Fischer Medical Ventures Ltd has announced a 1:10 stock split, reducing the face value of each equity share from ₹10 to ₹1. The move, approved during the company’s board meeting today, awaits shareholder approval via postal ballot, with the e-voting process set to begin on 31 July. Following the announcement, the stock rose to ₹964.00 by 04:01 IST, marking a 1.95% gain. The stock traded between ₹941.55 and ₹968.60 during the day.

Stock Split Targets Increased Liquidity and Broader Participation

The approved corporate action involves splitting each fully paid-up equity share of ₹10 into 10 equity shares of ₹1 each. This move is expected to enhance liquidity, making the stock more accessible to retail investors and increasing overall market participation. The authorised share capital will remain unchanged at ₹80 crore, while the number of authorised shares will increase tenfold from 8 crore to 80 crore. Similarly, paid-up shares will rise from 6.45 crore to 64.55 crore, though the total paid-up capital remains at ₹64.55 crore.

The stock split will be completed within two months of the date of shareholder approval. The record date will be announced following the postal ballot, and changes to the Memorandum of Association (Clause V) have also been proposed to reflect the new structure.

Postal Ballot Process Begins This Month, Result Expected by Early September

To facilitate shareholder approval, Fischer Medical has outlined a postal ballot process as follows:

• Dispatch of notice: 30 July 2025
• E-voting period: 31 July to 30 August 2025
• Result declaration: 2 September 2025
• Filing with ROC: Within 30 days from the result declaration

The resolution will be passed in accordance with SEBI regulations, specifically Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11-Nov-2024.

Quarterly Financials Show Revenue Growth But Lower Profitability

In Q4 FY25, Fischer Medical Ventures reported a revenue of ₹49.3 crore, representing a 132% year-on-year growth from ₹21.3 crore in the previous year. However, net profit declined by 49.2% YoY to ₹1.3 crore. The company’s operating expenses stood at ₹46.7 crore, resulting in an operating profit of ₹2.5 crore and an operating profit margin of 5.09%, a notable improvement from negative margins earlier in the year.

Despite revenue growth, rising expenses and a decline in profit margins continue to challenge overall profitability. EPS for the March quarter stood at ₹0.2, while profit before tax was ₹1.9 crore, impacted by higher depreciation and tax provisions. The company has shown a small but steady recovery in profitability over the past three quarters.

Key Metrics Reflect High Valuation but Modest Returns

Fischer Medical’s valuation metrics present a mixed outlook. The company’s market capitalisation stands at ₹6,150.5 crore, ranking high within the industry. Its TTM PE ratio is elevated at 5,149, indicating stretched valuations. The price-to-book ratio is also high at 67.9, reflecting a premium valuation in the market.

Revenue growth remains strong, with quarterly YoY growth at 136.5%, but net profit growth YoY is negative at -49.2%. The company has a low return on equity (ROE) of 0.4% and return on assets (RoA) of 0.3%, both below industry norms. The Piotroski Score stands at 2, suggesting weak financial fundamentals. Institutional holding saw a slight increase to 6.97%.

Relative returns show the stock outperformed the Nifty50 by 22.7% and its sector by 15% over the last quarter, indicating positive momentum despite underlying profitability pressures.

Stock Price Edges Up Following Split Announcement

Following the stock split announcement, Fischer Medical Ventures’ share price saw modest gains during trading on 28 July. The stock opened at ₹950.00 and moved within a day range of ₹944.85 to ₹970.95. By 15:43 IST, it was trading at ₹951.45, up 0.70%, while earlier at 04:01 IST, it had touched ₹964.00, up 1.95%. The trading volume remained moderate, with 15,426 shares changing hands, reflecting cautious optimism in the market.

Fischer Medical Ventures: Building Scale in Healthcare Tech

Fischer Medical Ventures Ltd, formerly known as Fischer Chemic Ltd, is a listed entity in the healthcare technology sector with its registered office in Visakhapatnam and corporate operations based in Chennai. The company is listed on both the NSE (FISCHER) and BSE (524743), and it is gradually carving out a presence in healthcare diagnostics and technology-led services. Backed by a turnaround in operational performance and recent strategic decisions, the company aims to strengthen its long-term prospects through improved liquidity, expanded shareholder base, and technology-driven growth.

REF:https://nsearchives.nseindia.com/corporate/FISCHER_28072025142930_Bmoutcome.pdf

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