Jupiter Hospitals IPO Highlights: (Starting 6th Sept 2023)
Hospital Locations:
- Thane, Pune, Indore (1194 beds)
- Upcoming in Dombivli (500 beds)
IPO Details: (Price Band: Rs. 695-735 per share)
Fresh Issue:
- Rs. 615 cr
- Repay Rs. 460 cr debt
- Balance for internal funds
- PE Multiple (estimated): ~63x (Dec 22 EPS)
- Peer PE Range: 35-76x
Offer for Sale (OFS):
- Excludes promoters in management
Business Performance:
Revenue:
- Rs. 650 cr (Apr-Dec 22)
- 25% average sales growth
- Thane: 62% revenue
- Pune: 31% revenue
- Indore: Balance
- 80% revenue from in-patient treatments
EBITDA: (Earnings before interest tax depreciation amortisation)
- 19.47% of Revenue
- Peer range: 14-25%
RoNW: (Return on Net Worth)
- Average 17.73%
- Peer range: 13-59.90%
Cash Flow:
- Consistently positive
Occupancy:
- Average 54%,
- Peer range: 45-70%
Interesting Information:
- 49% revenue from insurance claims
- Health insurance penetration in India: ~45%
- Health insurance in Maharashtra, Madhya Pradesh: 78% and growing
- Promoters (incldg management) converted warrants at Rs. 63.27 per share (Dec 22)
- Observed that most listed hospital share prices stay above IPO price (there are a few exceptions, and many new comparable peers have not seen a market cycle of more than 3 years)
- Usual EBITDA Breakeven: 2 years for each hospital Positive cashflow from 3rd year
Disclaimer: The above information is not solicitation or advice, readers can come up with their own conclusions. Not financial advice.
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