ABH Healthcare Limited (the Company) operates the prominent National Accreditation Board for Hospitals & Healthcare Providers (NABH) accredited "Anil Baghi Hospital" in Ferozepur, Punjab. Originally founded in 1985 as a modest 30-bed clinic by Dr. Kamal Baghi and late Mrs. Mukta Baghi, the hospital was acquired by the public entity in March 2022 and has since expanded into a premier 150-bed super-specialty tertiary care facility. The company’s core value proposition revolves around delivering high-quality, clinical-grade medical care in Tier-3 cities within Punjab, successfully bridging the gap between clinical excellence and financial affordability for rural and semi-urban populations, with a historical medical success rate of approximately 97%.
The company’s underlying business model is diversified across 25 medical specialties, with a major focus on safety-critical, high-realization specialties such as internal medicine, critical care, cardiology, neurosurgery, general surgery, and orthopedics. Its primary client demographics consist of regional households in Ferozepur and adjacent districts in Punjab. The company operates a highly structured payer mix, maintaining active empanelments with over 30 private and public insurance providers, third-party administrators (TPAs), and major central and state government welfare schemes, including the Ex-Servicemen Contributory Health Scheme (ECHS), Railways, Food Corporation of India (FCI), BSNL, and the Ayushman Bharat - Sarbat Sehat Bima Yojana (AB-SSBY). Government schemas and PSUs constitute a vital patient segment, accounting for 52.40% of inpatient operational revenues in Fiscal 2026.
As a healthcare service provider, the company does not possess traditional manufacturing units, factory locations, or industrial capacity utilization metrics; instead, its operational capacity is represented by its 150-bed hospital infrastructure and bed occupancy rates. This infrastructure includes 125 operational beds (denoting census beds active for midnight occupancy), 70 intensive care unit (ICU) beds, 9 pediatric unit beds, 7 emergency beds, and 10 dialysis beds (managed in partnership with Five Creeks Healthcare LLP). The facility's average capacity utilization, measured by bed occupancy, stood at 63% in Fiscal 2024 (on 85 operational beds), 49% in Fiscal 2025 (on 125 operational beds), and 47% in Fiscal 2026 (on 125 operational beds).
In lieu of industrial R&D, Tempsens-level product engineering is replaced by clinical research, specialized technology procurement, and continuous medical education (CME). The company boasts a dedicated medical workforce of 37 doctors (including 27 senior consulting doctors) and 101 registered nurses. A major operational highlight is the hospital's digital transformation, having been accredited with NABH Digital Standards (Silver Category) in Fiscal 2025. The hospital has integrated a comprehensive healthcare IT ecosystem, including a Computerized Physician Order Entry (CPOE) system, an Electronic Health Record (EHR) platform, and an automated 'Dry Chemistry' pathology laboratory fully linked to electronic records to eliminate manual processing errors.
As per financial performance, ABH Healthcare Limited has posted total income / net profits of Rs 41.39 Cr / Rs 1.66 Cr (FY24), Rs 49.32 Cr / Rs 5.35 Cr (FY25) and Rs 52.59 Cr / Rs 5.64 Cr (FY26). So as per previous financials data, the company has shown stable top-line growth at a 12.68% CAGR [Calculated] and stellar bottom-line growth at an 84.55% CAGR [Calculated], although its outstanding debt remains high at Rs 55.16 Cr which the company proposes to optimize post-issue by deploying Rs 17.00 Cr of the fresh proceeds
to prepay outstanding bank term loans. Company has an average EPS of Rs 6.10 and average RoNW of 44.51% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 5.19 as per NAV of Rs 21.58 as on 31.03.26. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 2.30 [Calculated]. If we attribute the latest earnings of FY24, FY25, and FY26 to the expanded equity base post-issue (11,429,600 shares), then the asking price is at a Post-Issue P/E of around 77.32, 23.94, and 22.70 respectively [Calculated]. As per RHP, a comparison between listed peers shows that ABH Healthcare Limited's post-issue diluted P/E of 22.70x represents an attractive valuation discount against comparable listed hospital operators like Asarfi Hospital Limited (27.63x) and Sangani Hospitals Limited (24.52x) while delivering more than double the industry's average Return on Equity.
On BRLM's front, Fedex Securities Private Limited is associated with this IPO, and has handled 26 IPOs in the past. From last 10 IPOs, two opened below issue price and remaining all opened above issue price or at par, on the day of listing. As of now, from the last 10 IPOs, six are trading below the issue price and the remaining four are trading above the issue price or at par. (As On 17.08.26)
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