Narayana Hrudayalaya Ltd IPO Message Board (Page 38)

Can anyone please tell me how to sell application. I have 4 account at H D F C Securities.

NHL issue is a risky issue.Give it a pass.

NHL issue is a risky issue.Give it a pass.

ONLY FOOLS WILL APPLY IN THIS IPO

IT HAS NET LOSS THIS YEAR. ALSO PREVIOUS YEARS PROFITS ARE NEGLIBLE AND CHECK THE PROFIT MARGIN IS NOT EVEN 2 % IN PREVIOUS YEARS.

THEY ARE ASKING p/e OF 67. WHAT A SHAMELESS COMPANY

THIS SHOULD HAVE NO DOUBT THAT ANYONE WHO WILL APPLY WILL INCUR ATLEAST 40% LOSS.

HOPEFULLY THIS ISSUE SHOULD NOT SAIL THROUGH.

Some of my analysis of Narayana Hrudayalaya IPO:

Founded in the year 2000 by cardiac surgeon Devi Prasad Shetty, the company has a network of 23 hospitals, 8 heart centers and 24 primary care facilities across 31 cities, towns and villages in Karnataka and eastern India, besides an emerging presence in Central and Western India. It has 5,442 operational beds and the potential to reach a capacity of up to 6,602 beds.

Dates of IPO – 17th December, 2015 to 21th December, 2015
Price band – Rs. 245 to Rs. 250
Lot size –60
Size of IPO – Rs. 613 crore

Company is selling almost 12% of shares. Investors Ashoka Investment Holdings Ltd, Ambadevi Mauritius Holding Ltd, JP Morgan Mauritius Holdings IV Ltd and Promoters Devi Prasad Shetty, Shakuntala Shetty are selling almost 2.45 crore shares. Objective of this IPO is not clear yet. Long time investors are selling their stake. This is whistle blower for me.

I have last 5 years financial data. From 2011 to 2015 company’s income is Rs. 480 crore, Rs. 660 crore, Rs. 854 crore, Rs. 1117 crore, Rs. 1371 crore respectively. It shows almost 25% to 30% increase each year. It shows excellent growth. But Net profit for year 2011 to 2014 is 13 crore, 25 crore, 24 crore, 31 crore respectively. Company posted a loss of 10 crore in year 2015. However, company’s income is increases but it fails to generate profit. This is alarming for me.

I have also 6 months data year ended September 2015. Company’s income is 788 crore and net profit is 12 crore. If we expect same for next six months then at the end of March 2016 company’s income is Rs. 1500 crore and net profit of 25 crore. I am predicting EPS at March 2016 is Rs. 1.22 only.

If we see the Rs. 5100 crore value post IPO and predicted EPS of Rs. 1.22, it is available at 200 P/E ratio. It is very high. If we compare with Apollo and Fortis, Apollo is available at P/E of 55 and Fortis is in negative. However, Apollo and Fortis are almost 3 to 4 times bigger than Narayana.

Some of interesting facts about Narayana from year 2013. Mysore facility built at a cost of Rs 35 crore, the 200 bed hospital is made of pre-fabricated materials and has no air-conditioning, except in the operating theatres. This allows the Mysore facility to charge only Rs. 40000 to Rs. 45000 for heart surgery, compared to Rs. 60000 to Rs. 65000 in Bangalore. The capex for other private sector healthcare companies like Fortis is rupees one crore per bed. Narayana’s cost is only Rs 17.5 lakh per bed. Promoter Dr. Devi Prasad Shetty always advocating low cost health care and health care for all.

In my opinion multispecialty hospital business model is not money making. There is very high competition is hospitals now. It’s very hard to make money in hospitals becaof lots of expenses. In addition, low cost model of Narayana is in big question.
Grey market premium is not active as of today (11th December, 2015).

I suggest there is nothing to loose if you avoid this IPO. I suggest stay away from this IPO. High risk is involved. It may take few years to get good return. If grey market is active in future and reaches to Rs. 900 to Rs. 1000 then sell your application for safer side. At present market is in consolidated mode and many good companies are available in cheaper.

Fully agree with you Unchit. Avoid is recommended. Few costly IPOs have become moderately successfully and everyone wants to trap retail investors of their hard earned money. Bloody chor uchekey. Fleecing at every opportunity. These guys should be taught a lesson. Subscription should be so low that they have to withdraw the IPO. But u never know about QIBs. Its not their money. They will ensure this IPO gets through.

over priced. Only to encash Brand Dr. Shetty. All the IPO proceeds to go to promoters. Business Gets Nothing. It should an AVOID.

In General, Hospitals should be valued on per-bed basis (Just like hotel which are valued on per-key basis).

In case of Narayana Hrudayala, we may also consider EV/EBDITA basis.

For relative valuations, look beyond the Indians peers of Narayana Hrudayala (Malaysian / Singaporean hospital chains will be a more appropriate peer group to consider).

I give only factual information .. I do not consider myself as qualified to give opinions .. there are many other smarter members here who offer free advise (eg PinkyJain)

Eagleye Sir, I liked ur reply.....Ur info relating to GMP is very factual... Keep it up. Thnx

Guys the numbers posted are wrong. the company has made a loss in 2015. Refer to page 92 of the prospectus

The Offer comprises of sale of 20,436,081 Equity Shares of our Company through an Offer for Sale by the Selling Shareholders out of which our Promoter Selling Shareholders are offering to sell up to 4,087,216 Equity Shares. The primary objects of the Offer are to achieve the benefits of listing our Equity Shares and carry out the divestment of Equity Shares by our Promoters and our investor Selling Shareholders.

Apply for listing gain
Application 1000 Mumbai
Gmp 73-74

But only worry is the objective of the issue. Will it benefit new RII or only the existing share holders. Pls. guide....

Narayana GMP 75-78 per Share

Narayana GMP 68-70 per Share

What is gmp

What is gmp

Total Income is growing in very good way but i 2015 profit is decline more then 50% to compare 2014 profit . Any one can tell my what is the reason bind .

What is the future plan of company to expand his business

YES
PL READ THE RHP

Admin,
As per draft documents company posted loss of 108.61 million against income of 13,715.87 million for year ended 2015 (31st March 2015) not profit of 118.31 million. Please correct it.

For six months ended (30th Sep 2015) company posted profit of 124.86 million against income of 7885.62 million.

Check page 92, EPS is negative!

Admin,
I got all no. from page 209 of draft - Restated Consolidated Summary Statement of Profit and Loss. My no.s are matching for income and profit for all years except year 2015. If my no. is wrong for 2015 then all no.s should be wrong. Company posted loss in year b2015. Also, EPS shows negative for 2015 in draft. Please double check this.

A niche industry IPO. Should attract large interest I believe. But have to look at valuations before taking a call.

Any gmp start to narayana hrudayalaya ?