Yatharth Hospital IPO

1.    For FY23, Noida Extension Hospital and Greater Noida Hospital were reported to be the 8th and 10th largest private hospitals in the Delhi NCR in terms of the number of beds they provide, according to the CRISIL Report.
2.    Its range of healthcare services spans from primary to tertiary levels, making the hospital chain a comprehensive one-stop destination for meeting all patient needs in their specific micro markets.
3.    Yatharth Hospital has a diverse revenue portfolio that stems from various customer segments, including government bodies like ESIC, EGHS, and ECHS, as well as public and private insurance companies, institutions, corporations, and walk-in customers.
4.    The hospital chain has a stable operating and financial performance. This success is attributable to its robust operational efficiency achieved through optimizing clinical and administrative functions, continual process innovations, and maintaining economies of scale.
5.    Its future plans seem promising with new specialties at their existing hospitals, such as adding radiation therapy to the oncology department at the Noida Extension and Jhansi-Orchha locations.
6.    The hospital chain has a strategic location in proximity to the proposed Noida International Airport enhances accessibility for medical tourists seeking services.
 

1.    The Offer Price, the market capitalization to revenue multiple, the price-to-earnings ratio, and the EBITDA based on the Offer Price of the hospital chain may not accurately reflect the market price upon listing or in the future.
2.    Its high fixed cost can have an adverse impact on the bottom line. 
3.    The subsidies have reported losses in the past, which can repeat. 
4.    Its operational activities are centered around the Delhi NCR area for now.
5.    A considerable part of the funds raised from the new share issuance is designated for the Jhansi-Orchha Hospital, which remained inactive from Fiscal 2020 to Fiscal 2022 and faced financial losses in Fiscal 2023.
6.    The business could be negatively impacted, both financially and operationally, if the hospital chain fails to obtain or renew approvals, licenses, registrations, and permits in a timely manner or if it is unable to obtain them at all. 
7.    Its business operations depend on obtaining financing from banks or financial institutions. If the hospital chain cannot secure additional financing on favorable terms or at all, it could negatively affect the overall financial condition.
8.    The business could be negatively impacted by government-imposed price restrictions, especially in situations like during the COVID-19 pandemic.