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Yatharth Hospital IPO: Analysts Optimistic - Is It Worth Your Bid?
26, Jul 2023
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Yatharth Hospital said it will utilise fresh issue proceeds for repaying debts, capital expenditure for hospitals, and funding inorganic growth initiatives, besides general corporate purposes.
The pharma and healthcare sectors have been on the radar of fund managers for the last few months, evident from the rise in share prices of several stocks in these segments. No wonder, analysts are going gung-ho on the Yatharth Hospital's plans to go public at such a time.
Most analysts tracking the initial public offer (IPO) of the company have advised to subscribe to the issue, citing its strong financial track record, encouraging growth projections, and expansion plans.
“They (Yatharth Hospital) have recently introduced kidney transplantation, bone marrow transplantation and oncology department. These speciality services will add cost to the hospital in the medium to long term, hence margins could see some pressure. Majorly, their revenue comes from government deals (34 percent), which can stretch the debtor days and margins as well. Hence, we recommend subscribing to the issue for listing gains,” said Sankita V, an analyst at Canara Bank Securities. .
Yatharth Hospital is among the top 10 largest hospitals in Delhi-NCR with a bed capacity of 1,405, out of which 394 beds are reserved for critical care. The hospital charges 20 percent cheaper rates than its peers, underlined analysts. The company is planning to expand in and around Uttar Pradesh and Delhi.
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