Hospitals must do right: analysts say subscribe to KIMS IPO
By Aditya Raghunath
Investing.com – Krishna Institute of Medical Sciences (KIMS) is a leading healthcare provider in Andhra Pradesh and Telangana. KIMS raises Rs 2,143 crore through its IPO at an issue price of Rs 815 to Rs 825 per share.
Ventura Securities reports that the stock’s true value is Rs 1,275. In an IPO note, they said, “We value the stock at Rs 1,275 (17x FY24 EV / EBITDA). This represents a potential rise of 55% from the IPO price of Rs 825 per share (upper band) over the next 24 months. The brokerage has an underwriting rating on the IPO.
ICICI Direct said the company is one of the best in its segment. He said: “It also has a near net debt balance sheet, a healthy FCF in fiscal year 2020-21 despite operating in an asset-heavy industry.” The brokerage said the IPO could yield good listing gains. It has a subscription rating on the IPO. However, he warned that expanding to other regions might not be the best idea for the company. “Due to the strong competition, expansion into other geographies may result in lower finances,” said ICICI Direct.
Angel Broking is also optimistic about the company. He said: “The company has a very healthy balance sheet with negative net debt / equity. We believe that the next expansion plan in Bangalore and Chennai can be financed by internal regularizations and a minimum amount of debt. We are assigning a “Subscribe” recommendation to the issue. “