Aashka Hospitals Limited

Incorporated in 2012, Aashka Hospitals Limited is an integrated healthcare service provider, committed to deliver quality healthcare services to its patients in modern facilities that includes prevention, best treatment and proper rehabilitation. The company serves range of services i.e. cardiology, nearology, Gastroenterology, Nephrology, Urology, Oncology, Clinical Hematology, Pain management, Endoscopy, Joint Replacement, Spine surgery, Critical and Intensive care etc. The Company decided to step-up its support in the fight against COVID-19 and was a designated COVID- 19 treatment hospital. With the support of hospital's doctors and staffs, they have treated more than 2000 COVID- 19 patients. The company provide inpatient and outpatient healthcare services through the its sole hospital at Gandhinagar, Gujarat with an aggregate bed capacity of 140 beds extendable upto 200 beds. As on April 30, 2021, the company have conducted an aggregate of over 4,900 surgeries and provided healthcare services to an aggregate of over 65,000 patients, consisting of 18,000 indoor patients and 47,000 OPD patients. On the financial performance front, Aashka reported turnover/net profits (loss) of Rs. 27.73 cr./ 1.36 cr. (FY19), Rs. 27.25 cr./ 1.37 cr. (FY20) and Rs. 40.69 cr. / Rs. 4.11 cr. (FY21). So company has shown exceptional growth in sales and net profit in FY21 and Q1 FY22 is also expected to be good. For the last three years, company has posted average EPS of Rs. 1.54 and RoNW of 10.41%. The issue is priced at a P/BV of 2.97 based on its NAVs of Rs. 40.42 as on 31.03.21. As per FY21 earnings, on fully diluted equity post issue, IPO is priced at P/E of around 84, which looks very aggressively priced. We may find better options available in open market. Comparison between listed peers is shown in above table. On BRLM's front, Fedex Securities Private Limited associated with this SME IPO, and have handled 10 IPOs in last three fiscals. From 10 IPOs, 1 is opened below issue price and remaining are opened above issue price. As of now from 10 IPOs, 7 are trading below and remaining are trading above issue price . ( As on 30.07.21 ) For Aashka Hospitals Limited, financials are good, RoNW is 14.07%, P/E is around 84 for FY21. So issue looks aggressively priced. Healthcare sector is very promising sector of future and expected to show good growth in upcoming years. Performance of BRLM is bad. So we give AVOID rating to this SME IPO.

• 1 Bipinchandra Shah