(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
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.
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.
(i) Authorized Share Capital
( 45,00,000 shares at FV@10)
(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue
(29,33,068 Shares at FV@10)
(iii) Present Issue
(14,00,000 Shares at FV@10)
(iv) Reservation for Market Maker
(72,000 Shares at FV@10)
(v) Net Issue to Public
(vi) QIB & HNI Quota-6,64,000
(vii) Retail Quota- 6,64,000
(viii) Paid Up Share Capital after the issue
Financials of Dr Lalchandani Labs Limited IPO as per DRHP:
1. Balance Sheet Snippet[ Financials as of Jan 2018]
(i) Shareholders’ Fund[Equity] Value
(iv) Debt/Equity[<1 ideal]
(v) Net Worth(Asset- Liability)
(vi) RONW(PAT/Net Worth) or ROE
(vii) Book Value or NAV[ Net Worth/No.of Shares]
(viii) P/B [<5 ideal]
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)
(i) Net Cash Generated from Operation
(ii) Net Cash Generated from Investment
(iii) Net Cash Generated from Financing Activity
(iv) Total[ (i)+(ii)+(iii) ]
(v) Cash and Cash Equivalents at the Beginning of the Year
(vi) Cash and Cash Equivalents at the end of the Year
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: