Entero Healthcare Solutions is a leading healthcare product distributor in India, catering to retail pharmacies, hospitals, nursing homes, clinics, and physicians.
It ranks amongst the top three healthcare product distributors in terms of operating income.
It has a diversified presence across 38 cities and 19 states, with a customer base of over 73,700 pharmacies and 2,800 hospitals.
1) It faces stiff competition from other players. 2) Weak financials. It has consistently incurred losses, resulting in negative cash flows and low return ratios.
Its business has high working capital requirements for which the company has relied on debt in the past. Also, it has pledged shares of its subsidiary companies.
Is the company's net debt-to-equity ratio less than one? Yes. Its net debt-to-equity ratio, as of September 2023, was 0.8 times.