Understand Business and Valuation of Unihealth Consultancy SME IPO

Business Segments:

1. Project Management Consultancy: The core business revolves around offering project management consultancy services to hospitals.

2. Medical Centers and Hospitals: Operates under the ‘UMC Hospitals’ brand with a combined capacity of 200 beds across two facilities.

3. Distribution: Engaged in the distribution of pharmaceutical and medical consumable products.

4. Medical Value Travel: Involved in facilitating medical tourism.

Holding, Subsidiaries and JV Business Detail Revenue in Fy23 (in Cr or Lakh)
Unihealth Consultancy Limited Engaged in the Consultancy Business 2.63 Cr
Unihealth Pharmaceuticals Private Limited UPPL exports and distributes pharmaceutical and medical consumable products in multiple African countries. 77 Lakh
UHS Oncology Private Limited Radiation oncology units and cancer care centres in key target geographies in Africa. 0
Victoria Hospital Limited 120-bedded Hospital 30 Cr
Unihealth Uganda Limited Pharmacy 0
UMC Global Health Limited 80-bedded Hospital 7.69 Cr
Biohealth Limited Medical centre with a dedicated dialysis unit in Mwanza, Tanzania. 1.03 Cr
Unihealth Tanzania Limited Pharmacy 0.71 Lakh
Aryavarta FZE AFZE provides management consultancy services to healthcare providers across Africa. 3.63 Cr

Current Projects:

1. Health City in Undri, Pune: Providing consultancy for a 300+ bedded facility.

2. Other Projects: Consultancy assignments in Kenya and Angola.

Export and Distribution:

1. African Countries: Significant presence in Uganda, Tanzania, and Nigeria.

2. Product Range: Includes laboratory consumables, surgical sutures, dialysis consumables, general medical consumables, and intensive care medicines.

Organizational Structure:

1. Leadership: Led by first-generation entrepreneurs Dr. Anurag Shah and Dr. Akshay Parmar, both medical professionals.

2. Subsidiaries and JVs: Unihealth Pharmaceuticals Private Limited and Biohealth Limited are subsidiaries, while Victoria Hospital Limited and UMC Global Health Limited are joint ventures.

Geographic Presence:

Broad geographic reach extending to India and multiple African countries including Uganda, Nigeria, Tanzania, Kenya, Zimbabwe, Angola, Ethiopia, Mozambique, and DR Congo.


1. Diversification: Unihealth Consultancy Limited has a diversified business model encompassing consultancy, hospital management, distribution, and medical value travel.

2. Geographic Footprint: Strong presence in both India and Africa, showcasing a transcontinental reach.

3. Collaborations and Ownership: Strategic joint ventures and subsidiaries add robustness to their portfolio.

4. Leadership: Led by medical professionals, which adds credibility and specialized knowledge to the business.

5. Supply Chain Synergy: The business entities are interlinked, creating a supply chain synergy, especially between Unihealth Pharmaceuticals and their hospitals.

6. Growth Prospects: With projects like the Health City in Pune and other international consultancy projects, the company appears to be in a growth phase.

Financial And Valuation:

1. The revenue has increased from 24 Cr in Fy21 to 46 Cr in FY23.

2. EBITDA Margins in Fy23 is 31%.

3. PAT has increased from 5 Cr in Fy21 to 7.68 Cr in Fy23.

4. As on 31.03.2023, total receivables is ~27 Cr and total Revenue of FY23 is 46 Cr. That means 62% of revenue is stuck in receivables. Receivables days is 225. Not able to generate cash in Fy23.

5. Total Shares outstanding is ~1.53 Cr and Issue Price is 132 per share. So, Mcap is ~200 Cr. With PAT of 7.68 Cr, the P/E is 26x which looks fully priced in.

In summary, Unihealth Consultancy Limited appears to be a comprehensive healthcare services company with diversified revenue streams, strong leadership, a broad geographic presence but valuation seems to be high and high receivables will be a challenge.

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