About the company
Aashka Hospitals was incorporated in November 09, 2012. Co. is certified by National Accreditation Board for Hospitals and Healthcare Providers (“NABH Accredited”) for tertiary and apical care level hospital in Gujarat.
They provide inpatient and outpatient healthcare services through their sole hospital at Gandhinagar, Gujarat with an aggregate bed capacity of 140 beds extendable upto 200 beds. As on April 30, 2021, they have conducted an aggregate of over 4,900 surgeries and provided healthcare services to an aggregate of over 65000 patients, consisting of 18000 indoor patients and 47,000 OPD patients.
The Hospital has been designated as isolation and treatment center for omicron variant COVID patients by the Gandhinagar Collector. The Hospital is the only private Hospital to do so.(not sure about this)
FACILITIES AND SERVICES PROVIDED BY THE HOSPITALS ARE:
CARDIOLOGY – INVASIVE AND NON-INVASIVE AND CARDIOTHORACIC SURGERY, NEUROLOGY, NEURO SURGERY, NEPHROLOGY, ORTHOPEDICS, PEDIATRICS SERVICES ETC.
Recently the co. has signed A NON-BINDING MEMORANDUM OF UNDERSTANDING to entered into MANAGEMENT AND OPERATIONAL TIE-UP with VAIDEHI - BACKBONE HOSPITAL, RAJKOT which is:
Aashka Hospitals Limited and Vaidehi — Backbone Hospital, Rajkot have agreed to a non-binding Memorandum of Understanding (“MOU”) regarding a proposed tie-up between the two Hospitals where by the management and operations of Vaidehi-Backbone will be integrated with Aashka Hospitals in phased manner. As part of integration Dr. Ankur Bhupendrakumar Pachani will be inducted as a member to the Board of Directors of Aashka Hospitals Limited. Vaidehi - Backbone hospital begun with the vision of Lt. Bhupendrakumar T. Pachani, is 500 bedded Hospital spread over more than 1, 00,000 sq. ft. and provide all Super speciality care under one roof. The hospital has India’s largest capacity oxygen plants — PSA technology based onsite oxygen generation system (GO 960) - 960 litres per minute generation capacity. The 500 beds comprise of 116 ICU beds and 384 non-ICU beds.
Promoters
Company is promoted by Bipinchandra Shah is a Civil engineer and a technocrat, who is currently serving as the Chairman and Managing Director of the Company. With a view to provide healthcare facilities to the people of Gujarat, he started hospital in the year 2015 and roped in renowned doctors.
Company came up with an issue recently and raised through the Fresh Issue, up to ₹ 6,534 lakhs. Company proposes to utilize this funds:
- Repayment / prepayment, in full or part, of certain borrowings availed by the Company :
2,000 lakhs -
Funding of our inorganic growth initiatives : 2,854 lakhs Co. plan to expand inorganically in hospital business to increase bed base from 200 to more than 1000 beds by FY 2024. - General corporate purposes 1,500 lakhs
Financials
2019:
Total rev: 2772 lakh
EBITDA: 956 lakh
Pat :136 lakh
CFO : 1011 lakh
2020:
Total rev: 2725 lakh
EBITDA: 862
Pat :137 lakh
CFO : -95 lakh
2021:
Total rev: 4069 lakh
EBITDA: 991
Pat : 411 lakh
CFO : 1450 lakh
Risks:
- Intense competition from other healthcare service providers.
- operations are geographically located in one area and any localized social unrest, natural
calamities, etc. could have material adverse effect on business and financial operations
My view: I perceive management is hungry for growth. Company is looking for opportunities to expand in Tier – II and Tier III – city / district in the state of Gujarat, India by entering into management contracts and / or strategic tie-ups with hospitals, nursing home, care units, etc. (“associate hospitals”).
Disc: Invested in the co. This is not a buy or sell recommendation. I am not a SEBI registered advisor. Please do your own due diligence.