i. Ajay Kumar Tyagi is the Chairman and Whole-time Director of the Company. He has been a Director of the Company since its incorporation. He holds a degree of bachelor of medicine and bachelor of surgery from LLRM Medical College, Meerut University. He also holds diploma in orthopaedics from King George Medical College, Lucknow. He has over 17 years of experience in the field of medical care and hospital management. He is responsible for strategic investment and overall guidance for the business of the Company. He was previously associated with Medical Health Family Welfare U.P. L.K.O. ii. Kapil Kumar is the Managing Director of the Company. He has been a Director of the Company since its incorporation. He holds a degree of bachelor of medicine and bachelor of surgery from SN Medical College, Agra University. Further, he holds a degree of master of surgery in orthopaedic surgery from Lucknow University. He has also completed magister chirurgie in orthopedics from University of Seychelles, American Institute of Medicine. He has over 17 years of experience in field of medicine and health care. He is an orthopaedic surgeon. Further, he is responsible for clinical management of the Company. He was previously associated with Lady Hardinge Medical College and Smt. Sucheta Kriplani Hospital and Noida Orthopaedic Hospital as a consultant. iii. Yatharth Tyagi is the whole-time Director of the Company. He has been associated with the Company since 2019. He was appointed as a Director of the Company on September 15, 2021. He holds a bachelor’s degree in business and management from Leeds Beckett University. He also holds a master of science degree in International Health Management from Imperial College London. He has approximately four years of experience in the field of hospital management. He is responsible for business development and brand building of the Company.

Particulars (In Cr)	FY23	Fy22	Fy21
Revenue	520	401	229
Cost of Material Consumed	93	81	46
Employee Benefit Expenses	92	80	47
Other expenses	202	128	69
EBITDA	134	112	67
EBITDA Margins	26%	28%	29%
D&A	28	28	21
Finance Cost	21	21	19
PBT	88	63	28
Tax	22	19	9
PAT	66	44	20
EPS	8	5	2

 

Review and Recommendation of Yasharth Hospitals IPO by IZ team is 6/10

Strengths:

1. Historical Growth and Establishment: Commenced operations in 2008 and has grown steadily over the years, showing the business's adaptability and resilience. 2. Size and Capacity: With a total of 1,405 beds, Yasharth is a prominent healthcare player in the Delhi NCR region. 3. Centers of Excellence (COEs): The establishment of COEs demonstrates a focus on specialized healthcare services, making the hospital a go-to destination for specific medical needs. 4. Recognition and Quality Assurance: Rated “5 Star” by Infomerics Analytics and Research Private Limited in 2022 and accredited by both NABH and NABL. 5. Modern Infrastructure: State-of-the-art diagnostic equipment, modular operation theaters, and comprehensive in-house diagnostic capabilities. 6. Holistic Care: Focus on the overall well-being of patients, with antenatal sessions, yoga classes, and telemedicine technology. 7. Experienced Leadership: Led by experienced professionals with over 17 years in the medical profession. 8. Diverse Revenue Streams: Empanelled with various health insurance administrators, government organizations, and private enterprises. 9. Active Branding and Outreach: Consistent community outreach, health talks, and active presence on social media platforms. 10. Increased ARPOB: A rising Average Revenue per Occupied Bed indicates that the hospital is successfully monetizing its bed capacity.

Weaknesses:

1. Bed Occupancy Rate: A decline in the Bed Occupancy Rate from 49.97% in 2022 to 45.33% in 2023. 2. Reliance on NCR Region: Major operations are concentrated in the Delhi NCR region, which can be a risk if the region faces economic or other adversities. 3. Decreased Capital Expenditure: The declining capital expenditure per operational bed might indicate reduced investments in infrastructure or equipment.

Opportunities:

1. Expanding Specialities: Introduction of new specialties like radiation therapy presents an opportunity for increased revenue. 2. Geographic Expansion: Acquisition of the Jhansi-Orchha hospital indicates potential for growth in new regions. 3. Growing Economy in Delhi NCR: A rising economy and population in the region suggest a greater demand for quality healthcare services in the future. 4.  Technological Advancements: Embracing telemedicine and other medical technologies can streamline operations and improve patient care.

Threats:

1. Increasing Competition: The rapid growth of private healthcare in India means rising competition in terms of price and services. 2. Regulatory Challenges: Changes in health regulations or policies can impact the profitability of the hospital.

Financials

1. The company has shown significant growth in revenue from FY21 to FY22 (75.11%) and continued to grow at a reasonable rate from FY22 to FY23 (29.68%). 2. EBITDA has also seen substantial growth from FY21 to FY22 (67.16%), but the growth rate slowed down from FY22 to FY23 (19.64%). 3. The company's profit after tax (PAT) has more than doubled from FY21 to FY22 (120%) and continued to grow at a healthy pace from FY22 to FY23 (50%).

Valuation

Yasharth Hospital's valuation based on Mcap/Bed appears relatively favorable compared to its peers. However, a crucial factor to consider is the occupancy rate of beds, which currently stands at 45%, notably lower than the industry average of 68% among its hospital peers. This lower occupancy rate could potentially lead to reduced revenue and pose a challenge to the hospital's growth prospects. It's essential to address and improve the occupancy rate to enhance revenue generation and ensure sustained growth for Yasharth Hospital in the future.

Yatharth Hospital and Trauma Care Services Limited JA 108 DLF Tower A Jasola District Centre South Delhi, Delhi - 110 025 Phone: +91 11 4996 7892 Email: cs@yatharthhospitals.com Website: https://www.yatharthhospitals.com/