Dr. Agarwal Health Care IPO Review

At Dr. Agarwal’s Eye Hospital Limited, they are committed to delivering the best eye care services through innovation and excellence. Their network of hospitals is equipped with innovative technology and staffed by highly skilled professionals. Their growth strategy, combined with their unwavering dedication to patient care and medical advancements, they continually strive to enhance their services and expand their reach, aiming to make quality eye care accessible to all.

The Company is led by the Chairman, Dr. Amar Agarwal, who has more than 35 years of clinical experience in the eye care services industry and has received several awards recognizing his contribution to ophthalmology, they have an experienced management team with extensive industry experience. Their marquee institutional shareholders include Temasek Holdings (Private) Limited (through its indirect wholly owned subsidiaries, Arvon Investments Pte. Ltd. and Claymore Investments (Mauritius) Pte. Ltd.) and TPG (through Hyperion Investments Pte. Ltd.).

The Revenues from operations for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 8,379.40 Million, ₹ 13,764.49 Million, ₹ 10,314.94 Million and ₹ 7,137.84 Million respectively. The EBITDA for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 2,284.77 Million, ₹ 4,065.55 Million, ₹ 2,838.60 Million, and ₹ 1,998.22 Million, respectively. The Profit after Tax for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 395.64 Million, ₹ 950.51 Million, ₹ 1,032.30 Million, and ₹ 431.64 Million respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 3.13 and post-issue EPS of ₹ 2.63 for FY24. The pre-issue P/E ratio is 128.43x, while the post-issue P/E ratio is 152.88x against the Industry P/E ratio is 82x. The company's ROCE for FY24 is 14.61%, ROE for FY24 is 9.33% and RoNW 6.21%. The Annualised EPS based on the latest financial data is ₹ 2.00 and PE ratio is 201x. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Dr. Agarwal's Health Care showing potential listing gains of 10.94 %. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Dr. Agarwal's Health Care Limited IPO for Listing gain.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

About the Author
 CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.