Krishna Institute of Medical Sciences Limited

Incorporated in 1973, Krishna Institute of Medical Sciences Limited (KIMS) is one of the largest healthcare groups in AP and Telangana. KIMS provides multi-disciplinary healthcare services with a key focus on primary, secondary, & tertiary care in tier 2-3 cities. The company offer a comprehensive range of healthcare services across over 25 specialties and super specialties, including cardiac sciences, oncology, neurosciences, gastric sciences, orthopaedics, organ transplantation, renal sciences and mother & child care. As of March 31, 2021, it operates through 9 multi-speciality hospitals under the brand name of "KIMS Hospitals" with an aggregate bed capacity of 3,064  including over 2,500 operational beds. The company also conduct medical education programs through company's affiliations with state medical boards and universities, for various broad and super specialties at company's hospitals in Telangana at Secunderabad and Kondapur, including for DNB and post-doctoral fellowship programs. As of March 31, 2021, there were 230 students enrolled in company's DNB and post-doctoral fellowship programs. The company also offer post-graduate, undergraduate and diploma programs that are affiliated with Kaloji Narayana Rao University of Health Sciences and the Telangana Para Medical Board. As per financial performance, KIMS has posted total income/net profits of Rs. 923.86 cr. / Rs. (50.02) cr. (FY19) and Rs. 1,128 cr. / Rs. 114.07 cr. (FY20). For FY21, it has reported net profit of Rs. 205.01 cr. on total revenue of Rs. 1,340 cr. So company has posted consistent high growth over last couple of years. Company has posted an average EPS of Rs. 17.62 and average RoNW of 16.82% for last three fiscals. Issue is priced at a P/BV of 7.15 as per NAV of 115.36 on 31.03.21. As per FY21 earnings, P/E is around 32.20. So issue looks fully priced. As per RHP, comparison between the listed peers are shown in above table.  On BRLM's front, four BRLMs are associated with this IPO, and have handled around 47 IPO in last three fiscals. From last 10 IPOs, 3 are opened below issue price and remaining are opened above issue on the day of listing. As of now, 2 are trading below price and remaining are trading above issue price. ( As on 11.06.21) As per financials, company has shown good growth, RoNW is 16.82% for last three fiscals and issue is priced at P/E of around 32 as per FY21 earnings. In current pandemic situation, hospital sector has outperformed market. Also different health related schemes of Government, increased health awareness in people and current life style, will help this sector to grow at good rate. Performance of BRLM is good. So, we are giving SUBSCRIBE rating to this IPO.

• 1 Dr. Bhaskar Rao Bollineni
• 2 Rajyasri Bollineni
• 3 Dr. Abhinay Bollineni
• 4 Adwik Bollineni
• 5 Bollineni Ramanaiah Memorials Hospitals Pvt. Ltd.