Dr Lalchandani Labs Limited IPO

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(a) Delhi based Dr. Lalchandani Labs Limited is a provider of diagnostic and related healthcare tests. Through its integrated network, the company offers patients and healthcare providers a broad range of diagnostic and related healthcare tests and services for use in core testing, patient diagnosis and the prevention, monitoring and treatment of disease and other health conditions.The

(b) Company is NABL Accredited Lab and has established 5 (Five) Self-Sufficient Labs and multiple collection centers within Delhi/NCR.

(c)The Company is managing/servicing labs at some of the leading hospitals and operating retail outlets such as
1. Primus Super Specialty Hospital, Chanakyapuri
2. Nanda Hospital, Chattarpur (70 Bedded)
3. Eden Hospital, East of Kailash (25 Bedded)
4. East of Kailash Retail outlet
5. Dr. Raturi Hospital, Khatima, Uttrakhand
6. Lords Daycare Centre, Bhogal New Delhi
7. Greater Kailash Part 1 – Retail outlet & Head office
8. Lajpat Nagar 2 – Retail Flagship outlet
9. Shahdra – Retail outlet
10. Dwarka Sector 19 – Retail outlet
11.Arya Samaj Mandir Sarojini Nagar– Charitable Retail Outlet
12. Arya Samaj Mandir Malviya Nagar – Charitable Retail Outlet
13. Arya Samaj Mandir Kalkaji – Charitable Retail outlet
14. Arya Samaj Mandir Kasturbha Nagar – Charitable Retail Outlet
15. Jampur Bhawan – Charitable Retail outlet
16. Laxmi Narayan Mandir Malviya Nagar – Charitable Retail Outlet

Dr Lalchandani Labs Limited IPO Stock Quote & Charts

24.50

+10.11%

  • Open: 22.75
  • High - Low: 24.50 - 22.75
  • Previous Close: 22.25
  • Total Traded Volume: 12000
  • Updated On: 16-Oct-2018

Objects of the Dr Lalchandani Labs Limited IPO:

Objective of

Dr Lalchandani Labs Limited IPO

are: 1. To open second major processing center (2000 sq. ft. area) in Delhi/NCR. 2. Repayment/pre-payment, in full or part, of certain borrowings availed by the Company. 3. To purchase advanced machinery and equipment. 4. To open new collection centers based on COCO model. 5. To develop E Applications and E Programs and other I.T. support system. 6. For Recruitment, Training, and Placement of staff to expand operations and other operational expenses. 7. For general corporate purposes.

Dr Lalchandani Labs Limited IPO Details:

Open Date: Apr 25 2018
Close Date: Apr 27 2018
Total Shares: 1,400,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 4.20 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 30 Per Equity Share
Listing At: BSE SME
Listing Date: May 09 2018

Promoters And Management:

Promoters of Dr Lalchandani Labs Limited Company are: (i) Mr. Arjan Lal Chandani, aged 65 years, is the Promoter and Managing Director of our Company. He is the doctor of Medicine (MD) in pathology from Banaras Hindu University, Bachelor of Medicine and Bachelor of Surgery from Banaras Hindu University. He is having more than 30 years of experience in the Pathology and related field. He looks after of routine operational activities of our Company. With his multifunctional experience, he guides company in growth strategies. He is on Board of Company since incorporation. (ii) Mr. Mohit Lal Chandani, aged 31 Years, is the Promoter and Wholetime  Director of our Company. He is having post graduate Diploma in Management from Lal Bahadur Shastri Institute of Management, Delhi. He is also Bachelor of Technology in the field of Electronics and Communication Engineering from Jaypee Institute of Information Technology University. He is having more than 5 years of experience in the Operations and Management. He guides us in overall operational activities of our Company. His business acumen has yielded the required results and with his tireless support to the company, facilitated the business to grow further. He is on Board of Company since incorporation.

Capital Structure:

(i) Authorized Share Capital ( 45,00,000 shares at FV@10) 4.5 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (29,33,068  Shares at FV@10) 2.933 Cr
(iii) Present Issue (14,00,000 Shares at FV@10) 1.4 Cr
(iv) Reservation for Market Maker (72,000 Shares at FV@10) 7.2 Lacs
(v) Net Issue to Public (14,00,000-72,000=  13,28,000Shares) 1.328 Cr
(vi) QIB & HNI Quota-6,64,000 50%
(vii) Retail Quota- 6,64,000 50%
(viii) Paid Up Share Capital after the issue 4.333 Cr

Financials of Dr Lalchandani Labs Limited IPO:

 1. Balance Sheet Snippet[ Financials as of Jan 2018]
       (i) Shareholders’ Fund[Equity] Value 329.95 Lacs
      (ii) Asset 602.97 Lacs
      (iii) Liability 273.02 Lacs
      (iv) Debt/Equity[<1 ideal] .82(reasonable)
      (v)  Net Worth(Asset- Liability) 329.95 Lacs
     (vi)  RONW(PAT/Net Worth) or ROE 38%
     (vii) Book Value or NAV[ Net Worth/No.of Shares] 11
     (viii) P/B  [<5 ideal] 2.7(reasonable)
2. Profit n Loss Snippet (i) The Revenue of the Company in last 4 years i.e. from FY 2013 to FY 2017 is growing at CAGR of 39.43[Excellent]. (ii) The PAT of the Company in last 4 years i.e. from FY 2013 to FY 2017 is growing at CAGR of 145%[Excellent]. (iii)The EBITDA Margins of last 5 years are: 20.7%(FY13),19.67%(FY14), 27%(FY15),26.69%(FY16) and 27.4%(FY17). The company's EBITDA margin has improved from 20% to 27% in last 5 years which speaks about the working of the company. (iv) P/B(post issue)= 1.733 (v) Annualized EPS(post issue)= 2.933 (vi) Annualized P/E(post issue)=10(Fairly priced )at the cutoff price of 30
3. Cash Flow Statement(all figures in lacs)
Particulars FY17 FY16 FY15 FY14 FY13
(i) Net Cash Generated from Operation 59.16 1.92 49.69 48.59 66.36
(ii) Net Cash Generated from Investment 31.65 -103.71 0.2 -12.06 -26.13
(iii) Net Cash Generated from Financing Activity -90.51 99.99 -45.63 -56.35 -39.71
(iv) Total[ (i)+(ii)+(iii) ] 0.3 -1.8 4.26 -19.82 0.52
(v) Cash and Cash Equivalents at the Beginning of the Year 5.18 6.98 2.72 22.54 22.02
(vi) Cash and Cash Equivalents at the end of the Year 5.48 5.18 6.98 2.72 22.54

Comparison With Peers:

The Business of the Company is very much similar to Thyrocare and Dr.Lal Path Labs but scale of operation is very small to do any sort of comparison. However,  the PE of Dr Lalchandani Labs Limited IPO is reasonably valued at 10 as compared to Thyrocare and Dr. Lal Path which are trading at PE of 38 and 43 respectively.

Recommendation on Dr Lalchandani Labs Limited IPO:

Review and Recommendation of

Dr Lalchandani Labs Limited IPO

from our side is: Rating: 7/10. 1-5: Fair 5-7: Good 7-10: Excellent

Lead Manager of Dr Lalchandani Labs Limited IPO:

  1. Navigant Corporate Advisors Limited

Registrar of Dr Lalchandani Labs Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Dr. Lalchandani Labs Limited M-20 Basement Greater Kailash-1 New Delhi 110048 Phone: 011 49057058 Email: info@lalchandanipathlab.com Website: www.lalchandanipathlab.com

25th Sep 2018 - 27th Sep 2018 => Aavas Financiers IPO

Bid Details of Dr Lalchandani Labs Limited IPO as on
27 Apr 2018 | 11:08:07 PM

Category No.of shares offered No. of shares bid
700,000 2,152,000
700,000 4,072,000
- -
1,400,000 6,224,000
QIBs Yes
QIBs+HNIs Subscription 3.07X
Retail Subscription 5.82X
Total Subscription 4.45X

Discussion on Dr Lalchandani Labs Limited IPO:

    Subscription figures are good but listing should be low to moderate. Let’s see!