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You are here : IndiaNotes >> Research & Analysis >> IPOs >> Shalby Hospital IPO

Shalby IPO: Specialization to lead its value; Subscribe

Prabhudas Lilladher | 06 Dec, 2017  | Follow Author | Add to my Favourites 
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Better ROE/ROCE amongst the peers: Shalby has superior margins as compared to its peers and earnings are likely to increase, only if there is improvement in the occupancy levels at new hospitals going forward. The company’s performance has been better than peers with better ROE and ROCE at 23.5% and 11.1% respectively in FY17. However, only two hospitals contributed 77% of revenues and over 90% of EBITDA in FY17 and the operations of the company is majorly dependent on one of its promoters, Dr. Vikram Shah. Any impact on revenues from these hospitals or a loss of his services could adversely affect its business. We recommend “SUBSCRIBE” with a longer term investment horizon because of better profitability and superior return ratios than the peers. However, we believe it is a value investment from long term perspective rather than any short term gains, since the margins in near term will be under pressure due to addition of newer hospitals.


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About Prabhudas Lilladher

Prabhudas Lilladher has a nationwide distribution network, consisting of branches, franchisees and associates, providing a comprehensive gamut of financial services in the Institutional and Retail domain. Their services includes Equity, derivatives; margin funding, mutual funds, PMS, IPOs and online trading.

 

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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