Healthcare stock hits 5% upper circuit after announcing share buyback at 17.64% premium

Synopsis: The shares of this micro-cap healthcare company are in focus today after the management in its announcement stated the board has approved of the buyback worth about Rs 19.14 crore. 

The company, which is a digitally first consumer healthcare company with a presence in categories such as home diagnostics, wellness devices, and personal fitness equipment under brands like Dr Trust and Dr Physio, had its shares in the news today as the company announced its share buyback, which aggregates to Rs 19.14 crore and deals with 5.8 lakh shares.

With the market cap of Rs 293 Crore, the shares of Nureca Ltd reached a high of Rs 294.50 compared to its previous day’s close of Rs 280.50 , which is a gain of about 5 percent in today’s intraday session. The shares are trading at a PE of 70.5, whereas its industry PE is 49. 

About the buyback.

Nureca Limited has announced a buyback of 5,80,000 shares at Rs 330 each, which is at a premium of 17.64% from its previous day’s closing price of Rs 280.50, totalling Rs 19.14 crore. Since this accounts for 5.80% of the company’s share capital, it shows that the management is confident about the company’s financial strength and long-term value.

The buyback will be carried out through the tender offer route, giving eligible public shareholders a chance to participate. The company has fixed December 12, 2025, as the record date to determine who is eligible to take part.

One important detail is that the promoters are not participating in the buyback. This usually signals that they believe the stock is undervalued and prefer to let public shareholders benefit from the offer.

Because promoters are not tendering shares, their stake naturally increases as the total number of shares reduces. Based on the shareholding table, promoter ownership will rise from 64.97% to 68.97%, while public shareholding will drop from 35.03% to 31.03% after the buyback. This gives promoters a stronger hold over the company without them buying even a single extra share.

To manage the process smoothly, the Board has formed a Buyback Committee and appointed Mefcom Capital Markets as the merchant banker. The company has also kept the option open to tweak the buyback price or number of shares (within the same overall size) until one working day before the record date. Overall, this buyback reflects Nureca’s healthy balance sheet, a shareholder-friendly approach, and management’s confidence in the company’s future prospects.

Financials and others. 

The revenue from operations for the company stands at Rs 37.74 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 31.19 crores, which is a growth of about 21 per cent YoY. Similarly, the company stood at a loss of Rs 48 lakh in Q2 FY25 versus Rs 3.63 crore profit in Q2 FY26.

Nureca Limited has built a strong name for itself in the home healthcare and wellness space through popular brands like Dr Trust, Dr Physio, and Trumom. The company is listed on both NSE and BSE and even has a global arm based in New York. It has more than 1.24 crore products sold across five countries, over 104 patents, and certifications from USFDA, CE, and ISO 13485.  It has also become India’s leading D2C healthcare brand, supported by over 1.23 lakh positive customer reviews, while its connected health app, Dr Trust 360, has crossed one million users, showing how strongly consumers engage with its ecosystem.

Nureca has built a strong and hard-to-replicate business by combining great products, smart distribution, and strong marketing. With 277-plus active SKUs, continuous innovation, and a solid manufacturing setup that can produce 8 lakh units a year, the company moves quickly from design to market with efficient lead times. 

Its presence is equally strong online and offline, leading on major e-commerce platforms while also working with 192-plus distributors and a dedicated sales team. Backed by steady marketing investments and a trusted brand like Dr Trust, Nureca’s growth pillars are D2C expansion, nationwide reach, in-house manufacturing, and connected health via Dr Trust 360, giving it a well-balanced foundation for long-term scale.

Written by Leon Mendonca.

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Healthcare stock hits 5% upper circuit after announcing share buyback at 17.64% premium appeared first on Trade Brains.