Broach Lifecare Hospital Limited operates boutique Hospitals under the brand 'Maple Hospitals' and provide dedicated round-the-clock services to patients with heart ailments consisting of non-invasive cardiology services such as, 2D Echocardiography, Electrocardiography, Tread Mill Test, Holter monitoring, Ambulatory Blood Pressure Measurement, Stress test, Dobutamine Stress Echocardiography. Subsequently, in the year June/July 2023 they ventured into interventional cardiac services such as, coronary angiography and stenting, percutaneous coronary intervention ('PCI') and primary PCI for acute myocardial infarction as a division. They also provide Ballon mitral-valvuloplasty, permanent pacemaker implantation, cardiac resynchronisation procedures, implantable cardioverter-defibrillator ('AICD') implantation and procedures for congenital ailments such as coarctation of aorta, stenting and posterior descending artery closure. We also offer a complete range of diagnostic and therapeutic options such as endovascular revascularization, deep vein thrombosis treatment and peripheral angioplasty. The hospital in Bharuch is an ultra-luxury hospital with 25 beds for in-patient treatment and is also equipped with diagnostic devices for performing test such as, 2D Echocardiography, Electrocardiography, Tread Mill Test, Holter monitoring, Ambulatory Blood Pressure Measurement, Stress test, Dobutamine Stress Echocardiography & high end Coronary care with life-saving equipment such as Intra-aortic Ballon Pump Machine, Biphasic Defibrillator, Ventilators, BIPAP machines, Syringe Pump, Volumetric Infusion Pumps and Multipara Monitoring Machines. They have capabilities to undertake complex intervention procedures using Cutter ballons for In-Stent blockages, Implanting Drug eluting Ballons in previously implanted stent, fractional flow reserve & rotablator technology for hard calcified blockages. The Satellite Hospital at Ankleshwar is a 15 bedded nursing home which act as a referral centre and offers non-surgical day-to-day treatment to the patients. The Satellite Hospital is also self-sustaining as they are strategically located to fulfil demand for basic tertiary care. As per financial performance, Broach Lifecare Hospital Limited has posted total income / net profits of Rs 3.80 Cr / Rs 0.76 Cr (FY21), Rs 3.47 Cr / Rs 0.45 Cr (FY22), Rs 1.93 Cr / Rs 0.13 Cr (FY23) and Rs 2.60 Cr / Rs 0.69 Cr (FY24). So as per previous financials data, company has shown zig-zag results. Company has posted an average EPS of Rs 1.92 and average RoNW of 15.10% for last three fiscals. Issue is priced at a P/BV of 1.60 as per NAV of 15.36 as on Post issue. If we attribute latest earnings of FY22, FY23 and FY24 on fully diluted equity post issue, then asking price is at a P/E of around 33.06, 109.57 and 21.75 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. Fedex Securities Private Limited is associated with this SME IPO and handled 29 SME IPOs and 1 Main board IPO in last 3 year. From last 10 SME IPOs, all opened above issue price or at par on the day of listing and From last 1 Main board IPO, that is opened above issue price on the day of listing. As of now from last 10 SME IPOs, four are trading below issue price and remaining above issue price and From last 1 Main board IPO, that is trading above issue price. (As on 08.08.24) As per financials, Broach Lifecare Hospital Limited has shown zig-zag results, RoNW is 12.75% and P/E is respectively 33.06, 109.57 and 21.75 as per FY22, FY23 and FY24 earnings. So, issue looks fully priced and also issue expenses is very high. Company is engaged in hospital business, which is highly fragmented and competitive business segment. Performance of BRLM is good. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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