IPOs | Latest IPOs News | Upcoming IPOs | Yatharth Hospital and Trauma Care Services | IPO advise | IPO call | IPO recommendation | IPO allotment Status| Financials | Shareholding

Industry : Healthcare

Yatharth Hospital and Trauma Care Services View all IPOs

Price Band

Rs. 285 – Rs. 300

Yatharth Hospital is going public with a Fresh Issue and Offer for Sale. The issue opens on 26th July 2023.

MOJO CALL

Why

MOJO CALL

Avoid

Neutral

Healthy Financials

In the last two years, Yatharth Hospital has had good margins and impressive revenue growth. Despite continuously decreasing EBITDA margins over the last two years, they have higher margins than most of their peers.
In the last two years, the company has also onboarded more doctors, and despite Covid-19 medicines accounting for 32% of revenues in FY21 and no longer contributing to revenue in FY23, the company has done a good job expanding its revenue by growing in every other specialty that the company offers.
The company is a consistent performer, as seen by its ROCE increasing from 18% in FY21 to 26% in FY23 during the last two years. Furthermore, the company has achieved positive cash flows over the last three fiscal years.

Fair Valuations Considering the Industry

The company is demanding a PE of 39x and a Market Cap-to-Sales of 4.9x based on March 2023 sales, which is high but appears reasonable given that the other companies in this industry all command high PEs. We recommend subscribing to this IPO because we anticipate this company can sustain this growth going forward.

Issue Details

Issue Opens	26th July 2023
Issue Closes	28th July 2023
Price Band	Rs.285 – Rs. 300
Issue size (Upper Band)	Rs. 687 Cr
Issue Type	FRESH ISSUE & OFFER FOR SALE
Market cap (based on upper band)	Rs. 2575 Cr
Sales- March 2023 (Rs./Crs)	520 Cr
Net Profit - March 2023 (Rs./Crs)	66 Cr
Industry	Healthcare
Promoters	Ajay Kumar Tyagi
Lead Manager	IIFL Securities

Objective of the Issue

Details

Fresh Issue & Offer for Sale – Rs. 687cr

The Objectives of the Offer are for:
1. Repayment of certain borrowings
2. Repayment of certain borrowings availed by the subsidiaries
3. Funding capital expenditure expenses for two hospitals
4. Funding capital expenditure expenses of subsidiaries
5. Funding acquisitions
6. General corporate purposes

List of Shareholders Selling Their Stake

Name	Type	No. of Shares	% of OFS
Vimla Tyagi	Promoter	3,743,000	57%
Prem Narayan Tyagi	Promoter	2,021,000	31%
Neena Tyagi	Promoter	787,490	12%

Business Operations

About Company

Yatharth Hospital and Trauma Care Services Limited, founded in 2008, is a multi-care hospital network. They are among the top ten largest private hospitals in Delhi's National Capital Region.

The company recently acquired a 305-bed hospital in the Jhansi Orchha Gwalior region, bringing the company's total bed capacity to 1405 beds.

As of FY23, the company has 445 doctors on board.

The company's revenue comes from Orthopaedics, Nephrology, Neurosciences, General Surgery, Cardiology, Paediatrics, Gynaecology, Gastroenterology, and Pulmonology

Segment Revenue Breakup

Revenue Breakdown By Vertical:
Specialties	FY 23	FY 22	FY 21
Non-Covid 19	31%	29%	24%
Cardiology	10%	7%	7%
Neurosciences	10%	8%	8%
Nephrology & urology	9%	6%	6%
Others*	9%	5%	5%
General surgery	8%	6%	7%
Orthopedics & spine & rheumatology	6%	6%	5%
Pediatrics	5%	4%	3%
Pulmonology	5%	3%	1%
Gynecology	4%	2%	3%
Gastroenterology	3%	2%	1%
Covid 19	0%	21%	32%

Financials

Financial Overview

The revenue of the company has grown at a CAGR of 51% in the last two years. It has also been able to expand its Net Profit Margin in FY23 to 13%

The company has generated consistent positive cash flows in the last 3 fiscal years

In FY23, The company’s ROE is 36% , the ROCE of the company is 26%, and the RONW of the company is 36%, indicating strong financials.

The company only falls short in terms of occupancy rates, which are low when compared to its contemporaries, although its peers are well-established.

Financial Performance (Rs/crore)

Rs./Crs	FY 23	FY 22	FY 21
Sales	520	401	229
Net Profit	66	44	20