Shanmuga Hospital IPO Review

Shanmuga Hospital Limited, a Multispecialty Hospital, was strategically established in Salem. Equipped with advanced healthcare technology and having 151 bed capacity, it addresses the community’s medical needs, serving patients from nearby regions. Accredited by the National Accreditation Board for Hospitals and Healthcare (NABH Accredited) and National Accreditation Board for Testing and Calibration Laboratories ("NABL Accredited"), the hospital is committed to high-quality healthcare services, including prevention, treatment, and rehabilitation.

The Company is led by Promoters, Dr. Panneerselvam Palaniappan Shanmugam has over 40 years of experience, he has been involved in various healthcare ventures and serves as Chairman-cum-Managing Trustee of the Shanmuga Medical Research Foundation Trust, Dr. Prabu Sankar Panneerselvam holds more than 9 years of experience in healthcare sector, Dr. Priyadharshni Dhandapani has around 9 years of experience in Paediatrics and Administration and Mrs. Jayalakshmi Panneerselvam has more than 30 years of experience in Healthcare Sector.

The Revenues from operations for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 2,482.81 Lakh, ₹ 4,338.78 Lakh, ₹ 3,949.56 Lakh and ₹ 4,147.10 Lakh respectively. The EBITDA for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 463.31 Lakh, ₹ 894.69 Lakh, ₹ 743.96 Lakh, and ₹ 912.96 Lakh, respectively. The Profit after Tax for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 239.29 Lakh, ₹ 526.15 Lakh, ₹ 476.22 Lakh, and ₹ 671.82 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 5.37 and post-issue EPS of ₹ 3.87 for FY24. The pre-issue P/E ratio is 10.06x, while the post-issue P/E ratio is 13.97x against the Industry P/E ratio is 22x. The company's ROCE for FY24 is 35.89%, ROE for FY24 is 30.71% and RoNW 30.71%. The Annualised EPS based on the latest financial data is ₹ 4.88 and PE ratio is 11.06x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Shanmuga Hospital showing listing gains of 14.81 %. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Shanmuga Hospital 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.