KK Shah Hospitals Limited

As per financial performance, KK Shah Hospitals Limited has posted total income/net profits of Rs 2.14 Cr / Rs 0.21 Cr (FY23) and Rs 1.62 Cr / Rs 0.09 Cr (Q1 FY24), So company has shown very limited financial data. Issue is priced at a P/BV of 3.26 as per NAV of Rs 13.79/- as on post issue. As per FY23 earnings on fully diluted equity post issue, asking price is at P/E of around 140.54 and as per annualised FY24 earnings P/E is 85.11. As per RHP, comparison between peers is shown in above table. On BRLM's front, Fedex Securities Private Limited is associated with this SME IPO and handled 21 SME IPOs in last 4 years. From last 10 IPO, three opened below issue price or at par and remaining above issue price on the listing day. As of now from last 10 IPOs, six are trading below issue price and remaining above issue price. ( As on 26.10.23 ) On BRLM's front, Shreni Shares Private Limited is associated with this SME IPO and handled 22 SME IPOs in last 3 years. From last 10 IPO, one opened below issue price or at par and remaining above issue price, on the listing day. As of now from last 10 IPOs, all are trading above issue price. ( As on 26.10.23 ) As per financials, for KK Shah Hospitals Limited very limited financial data is available, RoNW is 2.28% and P/E is respectively 140.54 and 85.11 as per FY23 and as per annualised FY24 earnings. So, issue looks aggressively priced. Company is in business of healthcare sector, which is highly fragmented and competitive segment. Performance of BRLM is poor. So we are giving AVOID rating to this SME IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1  Dr. Amit Shah
• 2  Dr. Kirti Kumar Shah