About the Company:
• Yatharth Hospital and Trauma Care Services Limited is a hospital chain established in 2008.
• The hospital has several super specialty hospitals located in Delhi NCR, specifically in Noida, Greater Noida, and Noida Extension, Uttar Pradesh.
• The Noida Extension Hospital is one of the largest in the area and has 450 beds.
• Yatharth Hospital offers various amenities and facilities to its patients.
• All of their hospitals have been accredited by the NABH, and the ones in Greater Noida and Noida Extension are also accredited by NABL.
• The hospitals meet international quality standards to ensure patient safety and recovery.
• The company expanded its operations by acquiring a 305-bedded multi-specialty hospital in Orchha, Madhya Pradesh.
• The hospital has a team of 370 doctors specializing in various fields.
• They provide healthcare services in multiple specialties and super specialties.
• The super specialty or Centres of Excellence (COE) of the hospital include departments for Medicine, General Surgery, Gastroenterology, Cardiology, Nephrology & Urology, Pulmonology, Neurosciences, Paediatrics, Gynaecology, Orthopaedics, Spine & Rheumatology.
Financials and Valuation:
The following table shows the summary of financials for the latest three financial years along with CAGR return from FY20 to FY23.
Next, we compare the key valuation ratios with the listed peers of Yatharth Hospitals Limited.
Based on the financials of FY23 and the upper price band of the IPO, we can calculate the relative valuation as mentioned in the below table:
Conclusion:
1) Although comparing market capitalization directly may not provide a clear picture, when we look at the Price to Earnings (P/E) ratio, the valuation of the company seems reasonable. However, when considering the Price to Book (P/B) ratio, it appears to be more expensive compared to other similar companies in the stock market.
2) The latest GMP is 50 (as on 12:33 pm of 27th July, 2023) which indicates a listing gain in the range of 12% to 16% subject to the overall market conditions.
Note: For additional information & risk factors please refer to the Red Herring Prospectus
Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decision. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
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