Maitreya Medicare Limited IPO

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1. Overview of the Hospital: MML is a 125-bed multi-super specialty hospital located in Surat, Gujarat. It offers a comprehensive range of healthcare services across more than 18 specialities and super-specialties, covering fields like Cardiology, Urology, Oncology, Laparoscopic Surgery, Neurology, Neurosurgery, Spine Surgery, Nephrology, Gastroenterology, Cardiothoracic Surgery, Orthopedic Surgery, Gynecology, and more. The hospital aims to provide primary, secondary, and tertiary care to patients.

2. Growth and Leadership: MML has shown significant growth in its bed capacity, expanding from 67 beds in 2021 to 125 beds in 2023. The leadership team is led by Dr. Narendra Singh Tanwar, the founder, Promoter, CFO, and Managing Director. Dr. Pranav Rohitbhai Thaker and Mr. Vimal Patel, both Promoters and Whole-Time Directors, play crucial roles in the management and growth of the hospital.

3. Regional Focus: The hospital strategically focuses on the southern Gujarat healthcare market. They leverage their understanding of regional nuances, customer culture, and the mindset of medical professionals to provide quality and affordable healthcare services.

4. Integrated Services: MML integrates diagnostic services and pharmacies into its operations, offering patients a convenient one-stop solution for their healthcare needs.

5. Experienced Management Team: The management team is supported by experienced professionals with significant expertise in the healthcare industry. Dr. Narendra Singh Tanwar is a highly skilled cardiologist with over 20 years of experience. Dr. Pranav Rohitbhai Thaker, in addition to his medical qualifications, has more than 20 years of experience in hospital management. Mr. Vimal Patel, a management graduate, has over 15 years of experience in the healthcare industry.

6. Patient-Centric Approach: MML follows a “patient-first” ideology, emphasizing the creation of good infrastructure, high-quality service delivery, and technological support. Patients’ comfort and convenience are top priorities. The hospital focuses on providing a wide range of healthcare services, from diagnostics to surgery and rehabilitation.

7. Future Expansion: The hospital has the potential to expand by an additional 75 beds, reaching a total capacity of 200 beds. It aims to offer quaternary care facilities such as organ transplants and robotics in the near future.

8. State-of-the-Art Facilities: MML features premier facilities, including a Cathlab, modular super-specialty operation theaters with advanced air filtration systems, well-equipped intensive care units, and support services such as pathology and radiology, including CT scan.

Competitive Strengths

a) Ability to attract and retain skilled and experienced healthcare professionals

b) Experienced and qualified professional management team with a focus on NABH guidelines

c) Focus on under-served areas with dense populations and presence in tier-2 and tier-3 cities

Objects of the Maitreya Medicare Limited IPO:

The hospital intends to utilize the proceeds of the Issue to meet the following objectives: 1. Making investment through Equity in the subsidiary named 'Maitreya Hospital Private Limited' for setting up a Hospital at Valsad, Gujarat. 2. Redemption of part of issued Non-Convertible Redeemable Preference Shares 3. Working Capital requirements of the company 4. General Corporate Purposes.
DRHP of Maitreya Medicare Limited IPO
RHP of Maitreya Medicare Limited IPO

Maitreya Medicare Limited IPO Details:

Open Date: Oct 27 2023
Close Date: Nov 01 2023
Total Shares: 1,816,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 14.89 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 78-82 Per Equity Share
Listing At: NSE Emerge
Listing Date: Nov 09 2023

Promoters And Management:

i. Dr Pranav Rohitbhai Thaker, aged 46 years is a Whole Time Director and Promoter of the Company and is associated with the company since its incorporation He was appointed on the Board with effect from May 27, 2019 and is most recently re-appointed as Whole Time Director since February 08, 2023. He holds MBBS degree along with Master of Surgery (MS) (ENT) in Otorhinolaryngology from Gujarat University awarded in 2002. He has completed Executive Programme in Business Management (EPBM) from Indian Institute of Management, Calcutta in year 2007-2008 followed by Doctor of Philosophy (Ph.D) [Public Administration] from Veer Narmad South Gujarat University, Gujarat for “Impact of Accreditation on Quality of Healthcare Services” in year 2013. He has done his Post Graduate Diploma in Laryngology & Otology in the year 2001 from Gujarat University, Ahmedabad. He is also a Diplomate of the National Board for the practice of Otorhinolaryngology certified by the National Board of Examinations, New Delhi in the year 2002. He has done his Post Graduate Diploma in Hospital & Health Management awarded by Indira Gandhi National Open University in the year 2003. He has obtained certificate from Mahatma Gandhi Labour Institute for clearing certificate course on Industrial Health held in November, 2006. He has successfully completed the Moody International Certification Quality Management Systems (QMS) Auditor/ Lead Auditor Training Course in the year 2009. He is a lifetime member of Indian Medical Association since 2012. ii. Mr Vimal Natverlal Patel, aged about 43 years is a Promoter and Whole Time Director of the Company. He was appointed on the Board with effect from May 27, 2019 and is associated with company since incorporation. He is most recently re-appointed as Whole Time Director in the company since February 08, 2023. He holds the degree of Bachelor of Science in Chemistry (BSc) from Veer Narmad South Gujarat University, Gujarat in year 2002 and Master of Business Administration in Marketing (MBA) from Veer Narmad South Gujarat University, Gujarat in year 2008. He looks after human resource related activity in the Company. He has over 15 years of rich experience in Healthcare Business Development. He initiated in 2008 as Sr Executive at Wockhardt Hospital and then was Territory Manager till 2012, later he was associated with Bankers Heart Institute and Tristar Hospitals, Surat as Manager Marketing till 2018. Since last 4 years he is associated with Maitreya Hospital as Founding partner and director and is responsible for Business growth, expansion and operations at group level. iii. Dr Narendra Singh Tanwar, aged about 55 years is the Promoter, CFO, Chairman & Managing Director of the Company. He was appointed on the Board with effect from May 27, 2019 and associated with company since incorporation. He is most recently re-appointed as Managing Director and CFO of the company since February 08, 2023. He holds Bachelor of Medicine, Bachelor of Surgery (MBBS) degree from University of Rajasthan in year 2001 and Doctorate of Medicine (DM) (Cardiology) from King George Medical College University, Lucknow in year 2008. He has more than overall 20 years of experience in this field. His area of expertise is Interventional Cardiology and is very well known Vascular consultant. He was associated with Krishna Heart Institute & Sterling Hospital, Ahmedabad during the year 2003-2006. Further he was associated with Bankers Heart Institute, Vadodara in the year 2006-2012 and then with Bankers Heart Institute, Surat from July 2012 to August 2018. He was at Tristar Hospital, surat from Sept 2018 till Sept 2019 and then joined Maitreya Hospital and now is the main guiding force behind the growth and business strategy of the Company.

Financials of Maitreya Medicare Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 5,661 4,941 3,938 2,479
Other Income 43 33 57 5
Total Revenue 5,704 4,974 3,995 2,485
Cost of Material Consumed 240 505 397 231
Purchase of stock-in-trade 796 566 425 250
Change in inventories -69 51 -7 23
Employee benefits expenses 425 510 484 249
Other Expenses 3,546 2,973 1,917 1,271
EBITDA 767 370 780 461
Depreciation & Amortisation 109 132 129 64
Finance Cost 82 78 60 36
EBIT 659 237 651 397
OPM (%) 13.45% 7.43% 19.52% 18.54%
PBT 577 160 591 361
Tax 153 46 168 107
PAT 424 114 423 254
NPM (%) 7.44% 2.28% 10.58% 10.23%
No.of Shares 67.76 67.76 67.76 67.76
EPS 6.26 1.67 6.23 3.74

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Maitreya Medicare Limited 39 4 6.23 13.1 82 56
Shalby Limited 805 68 6.27 37.8 240 2,588
KMC Speciality Hospitals (India) Limited 156 27 1.64 47.9 80.8 1,318
Global Health Limited 2,694 326 12.16 54.9 755 20,265
* All the data is as per FY23.

Recommendation on Maitreya Medicare Limited IPO:

Review and Recommendation of Maitreya Medicare SME IPO by IZ team is 5/10 Introduction Maitreya Medicare is a 125-bed hospital primarily operating in Surat, Gujarat. The hospital is planning to expand its operations by opening another 125-bed facility in Valsad, which is expected to be operational by December. Specializations The hospital specializes in a wide range of medical disciplines including Cardiology, Urology, Oncology, Laparoscopic Surgery, Neurology, Neurosurgery, Spine Surgery, Nephrology, Gastroenterology, Cardiothoracic Surgery, Orthopedic Surgery, and Gynecology. Leadership Team The hospital's management is spearheaded by Dr. Narendra Singh Tanwar, who serves as the Founder, Promoter, CFO, and Managing Director. Dr. Pranav Rohitbhai Thaker and Mr. Vimal Patel, both of whom are Promoters and Whole-Time Directors, are key players in the hospital’s growth and management. Expertise of Leadership - Dr. Narendra Singh Tanwar is a highly experienced cardiologist with over 20 years in the field. - Dr. Pranav Rohitbhai Thaker brings more than 20 years of experience in hospital management, in addition to his medical qualifications. - Mr. Vimal Patel, a management graduate, has over 15 years of experience in the healthcare industry. Patient Demographics and Financials - In FY23, 71% of the hospital's patients are self-payers, 7.38% are insured, and 21% are covered by Central and State Government schemes. - The hospital faces some liquidity challenges, with a significant portion of its trade receivables being delayed, particularly from the government side. Human Resources The hospital employs 25 full-time doctors and has a network of 175 consultant or visiting doctors. Additionally, it has a staff of 74 nurses, making up a total workforce of 375 individuals. Revenue Metrics - The average revenue per bed for in-patients stands at INR 22,000. - Financial performance has shown a decline from INR 56 crore in FY21 to INR 40 crore in FY23. However, the management attributes this to the elevated number of COVID-19 cases in FY21. Excluding the impact of COVID-19, the hospital believes it is on a growth trajectory. Valuation - The current market capitalization is INR 56 crore. - With 125 beds, the Mcap per bed comes to 0.48, suggesting the valuation appears reasonable. - The upcoming Valsad hospital is expected to contribute to revenue from next year, which could potentially make it an attractive investment opportunity.

Lead Manager of Maitreya Medicare Limited IPO:

  1. GYR CAPITAL ADVISORS PRIVATE LIMITED

Registrar of Maitreya Medicare Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Maitreya Medicare Limited Nr. Someshwara Char Rasta UM Road Surat, 395007 Phone: +91 98798 89506 Email: cs@maitreyamedicareltd.com Website: https://www.maitreyahospitals.com/

Discussion on Maitreya Medicare Limited IPO:

1 Comment

    Reasons to Exercise Caution in Maitreya Medicare

    1. Lack of Revenue Growth

    The company has exhibited stagnation in its revenue streams, with numbers not only failing to grow but actually showing a decline. This trend raises concerns about the sustainability and future profitability of the business.

    2. Suboptimal Utilization of Capital Expenditure

    While the company has increased the number of beds, the in-patient revenue has been on the decline. This indicates that the additional capital expenditure incurred for expanding bed capacity has not translated into revenue, thereby failing to generate a return on investment.

    3. High Trade Receivables

    The company has significant trade receivables amounting to INR 10 Cr out of a total revenue of INR 40 Cr in FY23. Delayed payments from insurance companies exacerbate the situation, potentially impacting cash flow and operational efficiency.

    4. Uncertainty Surrounding New Hospital and Use of IPO Funds

    The company intends to allocate INR 7.5 Cr from the IPO proceeds towards the construction of a new hospital in Valsad. As this hospital has not yet commenced operations, it is difficult to predict the Return on Equity (ROE) it might generate. Moreover, an additional INR 5 Cr is earmarked for working capital requirements, which is generally low in the hospital business, adding to the uncertainty surrounding the effective use of the IPO proceeds.

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