Asarfi Hospital is a 250 bedded multi-specialty hospital offering healthcare facilities to people for nearly two decades in Dhanbad, Jharkhand. The entity is Accredited by National Accreditation Board for Testing and Calibration Laboratories (NABL Accredited).
Pros:
- EV/EBITDA is just 8.06 which is fairly low compared to its peers (avg. of 18, a discount of 2.23x)
- Sustainable avg. EBITDA margin of 16.5% in last 3 years
- D/E is low at 0.4
- Plans to open a cancer care hospital with IPO (no other cancer hospital in Dhanbad) and a medical college (very profitable side-business)
- Steady 10% increase in ARPOB YoY
- Bed occupancy rate is ~65% which is decent with avg. inpatient stay of 4 days.
Cons:
- Land for building cancer hospital is currently in legal dispute in HC (They won the case in district court)
- CFO from Operations was negative in FY-23 due to high trade receivables (not sure how that can happen in a hospital - someone please share insights)
- Price to CFO in FY-22 was 5.6 which is expensive compared to its stated peers (avg. of 2.13)/ but the peers aren’t directly comparable
Overall seems like a safe bet for short to long-term (if they win the legal case which can get stuck).
| 2020-21 | 2021-22 | 2022-23 | KMC | Shalby | GHL | |
|---|---|---|---|---|---|---|
| Revenue | 54.4 | 66.2 | 73.0 | |||
| 21.68% | 10.33% | |||||
| Revenue from Ops | 54.12 | 65.21 | 70.7 | |||
| Total Expense | 49.62 | 58.48 | 62.14 | |||
| Finance Cost | 0.63 | 0.7 | 1.34 | |||
| D&A Cost | 2.91 | 3.35 | 3.87 | |||
| EBITDA | 8.04 | 10.78 | 13.77 | |||
| EBTIDA margin | 14.78% | 16.29% | 18.85% | |||
| PAT | 3.5 | 5.7 | 8.0 | |||
| PAT margin | 6.50% | 8.65% | 10.97% | |||
| Total shares | 1.97 | |||||
| EPS | 4.07 | |||||
| Price | 52 | 81.2 | 189 | 707 | ||
| P/E | 12.77 | |||||
| D/E ratio | 0.4 | |||||
| MCap | 102.3 | |||||
| Short-term borrowings | 4.63 | 5.64 | 6.41 | |||
| Long-term borrowings | 2.5 | 5.98 | 10.78 | |||
| Borrowings | 7.13 | 11.62 | 17.19 | |||
| Cash | 6.75 | 13.72 | 8.51 | |||
| EV | 111.0 | |||||
| EV/EBITDA | 8.06 | 30.1 | 13.9 | 27.8 | ||
| CFO | 10.29 | 9.26 | -2 | 32 | 68 | 645 |
| Price to CFO | 5.1 | 5.6 | -26 | 2.5 | 2.8 | 1.1 |
| ARPOB | 16712 | 18751 | 20068 | |||
| 12.20% | 7.02% | |||||
| Bed Occupancy Rate | 65% | 46% | ||||
| Length of stay | 4 | 31300 | ||||
| Beds | 250 |