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).
- 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.
- 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).
|Revenue from Ops||54.12||65.21||70.7|
|Price to CFO||5.1||5.6||-26||2.5||2.8||1.1|
|Bed Occupancy Rate||65%||46%|
|Length of stay||4||31300|