NEPHRO CARE INDIA IPO Review

NEPHRO CARE INDIA LIMITED is a healthcare provider that specializes in the treatment of kidney-related diseases and brings us the finest nephrologists in Kolkata. Explore their commitment to our kidney health and well-being.

The Company is backed by strong and professional promoters named, DR. PRATIM SENGUPTA, DR. PRITAM SENGUPTA & DR. SUTAPA SEN, in which Dr. Pratim Sengupta is one of the leading Nephrologists in India with more than 20 years of active clinical experience. Dr. Pritam Sengupta is having more than 13 years of experience as a dentist and Dr. Supata Sen is having more than 17 years of experience as a Gynaecologist.

Financially, Nephro Care revenue increased from ₹183.26 Lakhs in FY21 to ₹342.70 Lakhs in FY22 and further jumped to ₹1,709.51 Lakhs in FY23 and currently at ₹1,989.60 Lakhs in 9MFY24. But, EBITDA decreased from ₹8.47 Lakhs in FY21 to ₹3.67 Lakhs in FY22 but further increased to ₹21.33 Lakhs in FY23 and currently at ₹25.55 Lakhs in 9MFY24. The PAT also decreased from ₹8.87 Lakhs in FY21 to ₹-0.98 Lakhs in FY22 but further increased to ₹194.24 Lakhs in FY23 and currently at ₹340.04 Lakhs in 9MFY24. This indicates a steady growth in financial performance.

For the Nephro Care IPO, the company is issuing shares at a pre-issue EPS of ₹1.94 and a post-issue EPS of ₹1.17. The pre-issue P/E ratio is 46.39x, while the post-issue P/E ratio is 76.92x against the medical industry P/E ratio of 45x. The company's ROCE for 9MFY24 is 36.56%, and ROE for 9MFY24 is 41.57%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Nephro Care indicates potential listing gains of 60%-70%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the IPO for listing gains or long term Investment purposes.