Yatharth Hospital misses Street expectations on listing. What should investors do now?
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The weak listing, which was well below expectations, was mainly due to the ongoing uncertainty in the markets. However, post the listing, the stock rallied to a high of Rs 342, up nearly 14% over the IPO price of Rs 300.
Analysts advised investors to book profits at this level, suggesting that those with a long-term view can hold the stock.
“Investors who are looking for short-term gains may book profits at this level. However, aggressive investors who believe in the long-term prospects of the company may hold the stock with a stop loss at around the issue price,” said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart.
Astha Jain of Hem Securities, too, echoed same views and recommended booking profits.
“The company is yet to prove its mettle and it is looking like a long-term story. We advise investors to book profits at the current levels and long-term investors can hold,” Jain said.
The initial public offer of Yatharth Hospital received a good response from investors with the overall subscription at 36.1 times at close.The company proposes to use the proceeds from fresh issue towards repaying debt, funding capital expenditure, inorganic growth initiatives and other general corporate purposes.
Yatharth Hospital & Trauma Care Services is a private hospital which provides healthcare services and is based in the northern region of India.
The company operates three super specialty hospitals located in Delhi NCR and has recently acquired Ramraja Multispeciality Hospital and Trauma Centre in Orchha.
It has four operational hospitals with 1405 beds and as of March 23, it had 609 doctors engaged on their panel for servicing the patients.
During FY21-FY23, the company’s PAT margin grew from 8.6% to 12.6% and its ROE improved from 25.1% to 36%. For the year ending March 2023, the company’s revenues were at Rs 520 crore. The profit for the period was at Rs 65.7 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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