Jeena Sikho Lifecare Limited

Started in 2017, Jeena Sikho Lifecare Limited is ayurvedic healthcare company headquartered in Zirakpur, Punjab. The main motive of the Company is to build a healthy India through preventive measures by providing authentic and good quality Ayurvedic products. Ayurveda is an alternative medical system with historical roots in Indian subcontinent. The origin of Ayurveda dates back to the Vedic era. It was developed more than 3,000 years ago in Bharat. It's based on the belief that health and wellness depend on a delicate balance between the mind, body, and spirit. Its main goal is to promote good health, not fight disease. Ayurvedic theory states that all areas of life impact one's health, so it follows that the Vedas cover a wide variety of topics, including health and healthcare techniques, astrology, spirituality, government and politics, art, and human behavior.  Jeena Sikho Lifecare is a developing health care product & services providers in India. The company has portfolio of over a wide range of Ayurvedic products. The company also conducts various health checkup camps, yoga sessions free of cost to make people aware of their health problems. Company provides treatment by different methods such as Ayurveda, Allopathy, Homeopathy and Naturopathy. Shuddhi Ayurveda Panchakarma Hospital, a unit of JSLL, which offers treatment for Cancer, Diabetes, Liver problems, Arthritis, Cholestrol, Thyroid, Leukoderma, Joint pain and many more.The Shuddhi Ayurveda Panchkarma Hospital is situated at Dera Bassi, Punjab, with a capacity of 49 beds. As per financial performance, Jeena Sikho has posted total income/net profits of Rs 105.88 Cr / Rs 5.99 Cr (FY19), Rs 95.17 Cr / Rs 5.72 Cr (FY20), Rs 136.87 Cr / Rs 10.15 Cr (FY21) and Rs 72.51 Cr / Rs 6.21 Cr (H1FY22). So company has shown good results, and sudden rise in profits in IPO year, which creates some doubts. Company has posted an average EPS of Rs 7.26 and average RoNW of 37.23% for last three fiscals. Issue is priced at a P/B of 2.38 as per NAV of Rs 63.08 post issue. As per FY21 earnings on fully diluted equity post issue, asking price is at P/E of around 20.40 and as per annualised FY22 earnings P/E is 16.67. As per RHP, Comparison between listed peers are shown in above table.     On BRLM's front, Fast Track Finsec Private Limited associated with this SME IPO and has not handled any SME IPO in last 3 years. ( on 25.03.22 ) As per financials Jeena Sikho, has shown good results, RoNW is 24.07% and P/E is respectively 20.40 and 16.67 as per FY21 and annualised FY22 earnings, which looks fully priced and sudden rise in profit in IPO year raises concerns. Also amount generated from IPO is used for marketing, loan repayment and other requirement. Healthcare sector is growing at good rate and alternative treatment practices are becoming popular among people, so there is good scope for growth. But its highly competitive and fragmented segment.  So we are giving NEUTRAL rating to this IPO.

• 1 Mr. Manish Grover
• 2 Mrs. Bhavna Grover