One of India’s leading eye care service provider, Dr. Aggarwal’s Health Care Limited is set to launch its initial public offer of Rs 3,027.3 crore on 29 January.
According to Red Herring Prospects, the proposed IPO contains a new issue of Rs 300 crore and a proposal-selling component of Rs 2,727.3 crore.
Should anyone subscribe to public issue? What recommends brokerage here:
Axis Capital Aggarwal’s position was exposed by revenue as India’s largest eye care chain, with 25% market share in FY 2024.
Brokerage believes that consumer confidence in the brand, with its proven ability to integrate acquisition, and continuous continuous increase in operating profit margins will provide a promising opportunity for prolonged investors.
However, Axis reported that there are contestants in this segment, including ASG hospitals and the choice of I-Q vision and multisialti giants such as Apollo Hospitals and Fortis Healthcare. Brokerage said that these players, while the market share can face challenges.
SBI Securities said in a report that Dr. Aggarwal has set its IPO price based on EV/EBITDA several 33.9 times for the financial year ending March 2024, and 27.7 times for the first half of the ongoing financial, SBI Securities said in a report.
The ratio between the enterprise value and earnings before interest, taxes, depreciation and refinement helps investors to assess whether the company’s evaluation is appropriate than its earnings. A low ratio may indicate a good deal, while a high ratio may suggest overprising.
The powers with the eye care provider include comprehensive service prasad, strong clinical rule and 9.5 times market cap-to-sell ratio according to brokerage. On the other hand, risks include high attraction rates, regional concentration and regulatory challenges, it added.
SBI securities emphasized the company’s operational capacity and strong expansion strategy. Its hub-end-spoke model allows high patient versions with minimal upfront investment and its asset light model-193 out of 193 features are leased-according to their note, there is an advantage.
The brokerage firm said that the price of the IPO is in line with the same companies and recommends investors to subscribe to the cut-off price for long-term investment.
Anand Rathi highlighted the evaluation of the company at 134 times the price of price per share for FY 2024. This gave Dr. Agarwal’s 25% market share and leadership in the eye care sector accepted. The company’s dependence on retaines agreements with doctors and geographical concentration is marked as potential risks.
Despite the rich pricing, Brokerage released the “membership – long -term” rating, banking on future development.
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