Medanta Share Price: Shares of Medanta operator Global Health Ltd made their stock market debut today. Medanta chain of hospitals, soared 19 percent on debut, listing at Rs 398.15 on the BSE and Rs 401 on the NSE.
Global Health is one of the largest private multi-specialty tertiary care providers operating in north and east India under the brand Medanta. The company engages in cardiology & cardiac science, neurosciences, oncology, digestive and hepatobiliary sciences, orthopaedics, liver transplant and kidney & urology. It is one of the largest private multi-specialty tertiary care providers in terms of bed capacity and operating revenues in FY22. It has centres in Gurugram, Indore, Ranchi, Lucknow and Patna.
Global Health recorded a 50 percent growth in revenue from operations in FY22 and 27 percent growth in the first quarter of FY23 from a year ago, led by an increase in patient volumes, bed occupancy and higher average revenue per occupied bed.
Consolidated profit grew almost sevenfold to Rs 196.2 crore in FY22 and 40 percent to Rs 58.7 crore in Q1 of FY23.
On the operating front, its EBITDA (earnings before interest, tax, depreciation and amortisation) grew at around 55 per cent CAGR during FY20-FY22, and margin expanded to 21 per cent in FY22, from 12 per cent in FY20, aided by better operational efficiencies.
The Global Health IPO of Rs 2,205 crore included a fresh issue of only Rs 500 crore, while the rest was an offer for sale by existing investors.
Should you Buy, Sell or Hold?
Parth Nyati, Founder at Tradingo said that Medanta has debuted at Rs.401 i.e. 19 per cent over its issue price. With long-term structural factors supporting growth, renewed impetus from PMJAY, and the government’s focus shifting onto the healthcare sector, the healthcare delivery market is expected to grow at 13–15 per cent. The issuer has good patient volumes and cost efficiency, and its financial profile also shows an increasing trend. Finally, the issue is fairly priced at a P/E of 43 as compared to the average industry P/E of 51.93. Those who applied for listing gains can maintain a stop loss of Rs. 380.
Manoj Dalmia, Founder & Director at Proficient Equities said, “Global Health Limited is one of the largest private multi-specialty tertiary care providers, operating in the North and East regions of India. Posted growth over the years in its scale of operations. The issue is attractively priced based on its financial data. Cash-rich investors can hold for long-term periods.”
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