Jupiter Life Line Hospitals Limited is among the key multi-specialty tertiary and quaternary healthcare providers in the Mumbai Metropolitan Area (MMR) and western region of India with a total bed capacity of 1,194 hospital beds across three hospitals as of March 31, 2023. They have been operating for over 15 years as a corporate quaternary care healthcare service provider in densely populated micro markets in the western regions of India and currently operate three hospitals under the 'Jupiter' brand in Thane, Pune and Indore, with an operational bed capacity (i.e. census and non-census beds) of 950 beds and 961 beds, as of March 31, 2023 and as of the date of this Red Herring Prospectus, respectively, and 1,306 doctors including specialists, physicians and surgeons, as of March 31, 2023. They are also currently in the process of developing a multi-specialty hospital in Dombivli, Maharashtra, which is designed to accommodate over 500 beds and has commenced construction in April 2023. Company commenced operations in 2007 with the hospital in Thane, Maharashtra and subsequently scaled the operations by setting up a hospital in Pune, Maharashtra in 2017 and acquiring a hospital in Indore, Madhya Pradesh in 2020. The hospitals function on an ‘all-hub-no-spoke’ model with each hospital being a full-service hospital, operating independently and serving the healthcare needs of patients, right from diagnostics to surgery and rehabilitation. The Thane and Pune hospitals are 'greenfield' projects, and all three of the hospitals are located on land owned by them on a freehold basis. In FY 2021, 2022, 2023, the inpatient volumes were 24,553, 34,650 and 42,956, respectively, while outpatient volumes were 423,020, 610,796 and 730,981 respectively, during the same periods. The average occupancy rate of beds for the Thane and Pune hospital was 50.45% (decrease was on account of COVID-19), 62.16% and 69.99% in Fiscals 2021, 2022 and 2023, respectively. The ARPOB for the Thane and Pune hospital also have consistently increasing and was Rs 47,234, Rs 50,647 and Rs 53,274 in FY 2021, 2022 and 2023, respectively. As per financial performance, Jupiter Life Line Hospitals Limited has posted total income / net profits of Rs 490.26 Cr / Rs (2.29) Cr (FY21) and Rs 737.14 Cr / Rs 51.12 (FY22) and Rs 902.96 Cr / Rs 72.90 Cr (FY23). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 9.62 and average RoNW of 15.77% for last three fiscals. Issue is priced at a P/BV of 11.41 as per NAV of 64.39 as on 31.03.23. If we attribute latest earnings of FY22 on fully diluted equity post issue, then asking price is at a P/E of around 94.26 and as per FY23 earnings P/E is around 66.10, which looks fully priced. As per RHP, peers comparison is shown in above table. On BRLM's front, three lead managers are associated with this IPO, and have handled around 83 IPOs in last three fiscals. ICICI Securities Limited : This is 38th IPO from this BRLM. From last 10 IPOs, 3 opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, all are trading above issue price or at par. (As on 01.09.2023) Nuvama Wealth Management Limited : This is 14th IPO from this BRLM. From last 10 IPOs, 3 opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, 3 are trading below issue price and remaining are trading above issue price or at par. (As on 01.09.2023) JM Financial Limited : This is 33rd IPO from this BRLM. From last 10 IPOs, 3 opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, 1 is trading below issue price and remaining are trading above issue price or at par. (As on 01.09.2023) As per financials, Jupiter Life Line Hospitals Limited has shown good growth, RoNW is 20.03% and P/E is respectively 94.26 and 66.10 as per FY22 and FY23 earnings. So, issue looks aggressively priced. Company is in business of healthcare sector and operates multi speciality hospitals, which is highly fragmented and competitive. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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