Yatharth Hospital & Trauma Care Services Limited commenced operations in 2008 with a clinic in Noida, Uttar Pradesh and thereafter established the first hospital in Greater Noida, Uttar Pradesh in November 2010. This hospital has since grown to become a super-specialty tertiary care hospital with 400 beds, including 112 critical care beds, nine modular and other operation theatres, as of March 31, 2023. The second hospital in Noida, Uttar Pradesh commenced operations in 2013 as a 250-bedded super-specialty tertiary care hospital. The Noida hospital has a mix of four modular and other operation theatres as well as 81 critical care beds. The third hospital located in Noida Extension, Uttar Pradesh is a 450-bedded tertiary care hospital with a mix of 11 modular and other operation theatres. It also has 125 critical care beds, and had commenced operations in May 2019. Further, they acquired a 305-bedded Jhansi-Orchha hospital during the last quarter of Fiscal 2022, which is one of the largest hospital in Jhansi-Orchha-Gwalior region in terms of numberof beds. The Jhansi-Orchha hospital commenced commercial operations from April 10, 2022 and is equipped with 11 modular and other operation theatres and has 76 critical care beds, as of March 31,2023. As of March 31, 2023, company engaged 609 doctors led by experienced clinical department directors and offer a range of healthcare services across the specialties and super specialties, which include the Centres of Excellence such as the Centre of Medicine, Centre of Cardiology, Centre of Neurosciences, Centre of General surgery, Centre of Nephrology & Urology, Centre of Paediatrics, Centre of Gastroenterology, Centre of Pulmonology, Centre of Gynaecology and Centre of Orthopaedics & Spine & Rheumatology and other specialties. They also plan to introduce new specialties, namely radiation therapy to the oncology department at the Noida Extension and Jhansi Orchha hospitals. Further, they have started bone marrow and kidney transplant operations at the hospitals located at Noida Extension and Greater Noida. The number of operational beds which increased from 864 in Fiscal 2021 to 1,405 beds in Fiscal 2023 at CAGR of 27.52%, and the occupancy rate of the beds, increased from 41.63% in Fiscal 2021 to 49.97% in Fiscal 2022. In Fiscal 2023, the bed occupancy rate was 45.33% as the Jhansi-Orchha hospital commenced commercial operations in Fiscal 2023 with effect from April 10, 2022 and had a low occupancy rate. As per financial performance, Yatharth Hospital & Trauma Care Services Limited has posted total income / net profits of Rs 229.19 Cr / Rs 19.59 Cr (FY21) and Rs 402.59 Cr / Rs 44.16 (FY22) and Rs 523.10 Cr / Rs 65.77 Cr (FY23). So as per previous financials data, company has shown good growth. But company has high debt. Company has an average EPS of Rs 7.77 and average RoNW of 34.75% for last three fiscals. Issue is priced at a P/BV of 10.74 as per NAV of 27.93 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 58.32 and as per FY23 earnings P/E is around 39.16, 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 40 IPOs in last three fiscals.Intensive Fiscal Services Private Limited : This is 3rd IPO from this BRLM. From last 2 IPOs, all opened above issue price or at par on the day of listing. As of now, from last 2 IPOs, all are trading above issue price or at par. (As on 20.07.2023) Ambit Private Limited : This is 6th IPO from this BRLM. From last 5 IPOs, two opened below issue price and remaining opened above issue price or at par on the day of listing. As of now, from last 5 IPOs, two are trading below issue price and remaining are trading above issue price or at par. (As on 20.07.2023) IIFL Securities Limited : This is 34th IPO from this BRLM. From last 10 IPOs, all opened 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 20.07.2023) As per financials, Yatharth Hospital & Trauma Care Services Limited has shown good growth, RoNW is 35.95% and P/E is respectively 58.32 and 39.16 as per FY22 and FY23 earnings, which looks fully priced. Company is in business of Health Care, and the sector is expected to do well in future as Government is focused to improve health infrastructure in every part of country. 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.
✍️ Post a Comment