Global Longlife Hospital and Research Limited

Global Longlife Hospital and Research Limited, started on January 2012, is known as a Multi Speciality Tertiary Care Hospital of Gujarat with 110 beds well equipped for Medical & Surgical Specialities. The Company had acquired 1339 sq. mt land in the prime locality of Ahmedabad for starting hospital in the month of March 2012, and had completed the Hospital within a period of three years and started hospital in the year 2015-16. As per company policy any doctor having experience of more than 3 years can admit his patient in the hospital. They provide platform to the doctors for treatment of their patients. As on 31st December 2021 apart from the 11 full time consultants, they have team of more than 30 experienced doctors as a consultant to serve the patients. The staff strength also comprises 37 nursing staff and more than 50 paramedical, corporate and support staff and pharmacists as on December 31, 2021. The Company is certified by National Accreditation Board for Hospitals and Healthcare Providers ('NABH Accredited'). They have invested in, and have established a IT system both for clinical purposes as well as integrating systems and processes through HMS (Hospital Management System) which includes Central Registration module, Appointment, Barcode Generation, Case Paper Generation, OPD Billing, Procedure billing, IPD Registration, Advance & Refund, Due billing, TPA/Package Billing, User Management, Doctor Sharing, Software Security, Management Reports, Discharge Summary towards streamlining the clinical and administrative functions. As per financial performance, GLHRL has posted total income/net profits of Rs 34.69 Cr / Rs 1.36 Cr (FY19), Rs 33.66 Cr / Rs (0.86) Cr (FY20), Rs 32.77 Cr / Rs 1.04 Cr (FY21) and Rs 26.74 Cr / Rs 3.86 Cr (upto Q3 FY22). So company has shown zig-zag results and sudden rise in net profit in IPO year. Company has posted an average EPS of Rs 0.75 and average RoNW of 4.84% for last three fiscals. Issue is priced at a P/B of 2.54 as per NAV of Rs 55.21 post issue. As per FY21 earnings on fully diluted equity post issue, asking price is at P/E of around 142 and as per annualised FY22 earnings P/E is 28.5. As per RHP, Comparison between listed peers are shown in above table.     On BRLM's front, Interactive Financial Services Limited associated with this SME IPO and handled only one IPO in last 3 years. The last IPO, opened below issue price and as of now trading below issue price. ( As on 20.04.22 ) As per financials GLHRL, has shown zig-zag results, RoNW is 11.54% and P/E is respectively 142 and 28.5 as per FY21 and annualised FY22 earnings, which looks fully priced. Also sudden rise in profit in IPO year raises concerns. The Healthcare sector is highly competitive and there is nothing special with this company. Performance of BRLM is poor post listing. So we are giving AVOID rating to this IPO.

• 1 Mr. Sureshkumar Babulal Jani
• 2 Mr. Dhruv Sureshkumar Jani