JEENA SIKHO- seems shady, one off?

46

You are defying the whole theory of valuations

Jeena Sikho growing at more than 40% to 50% every year but HCG at 15%

Jeena Sikho is getting immense operating leverage

Now at 45 to 48 PE i think it is quite fairly valued

No one cares if HCG is the largest oncology chain

As long as growth does not come valautions will be lesser

3 Likes
47

I am not an expert on the valuations, but here is what I see.

Jeena Sikho’s Q3FY26 PAT was more than 2.5 times HCG’s last 4 quarters PAT combined. Yet, if they are trading at similar market caps, then it is HCG that is relatively overvalued, though it doesn’t mean Jeena Sikho is undervalued.

I know, HCG’s earnings might be suppressed and all, can’t say as I don’t track it.

But for Jeena Sikho, I can say the valuation is slightly on richer side, but not yet in overvalued zone. It is pricing in good execution and any slip will hurt.

I understand, it can never get high valuation to the likes of Speciality Hospitals which are going to be steady. Because, there are too many risks in it, promoter dependency, people’s belief in ayurveda, regulations etc.

All I can do is let the execution play out till any risks show up or valuation goes overboard.

4 Likes
48

Yes. Market loves growth. No doubt about it.

Just the numbers are too hard to believe. I hope they are following proper governance standards.

Hopefully no Financial Shenanigans.

2 Likes
49

Guys, look for forward PE and growth then you realise which is expensive and cheap.
Jeena Sikho forward PE is ~32 (based on Q3 FY26 earning), even though Q3 is soft quarter for their business. And they will easily grow > 50%. Its very high ROCE business that means they will be generating high cash compare to competitor and this will in turn help them to acquire other businesses or invest to grow their business rapidly.
They have appointed Grant Thornton as statutory auditor and Forvis Mazars as internal auditor. They are reputed auditors in world. If they can still manipulate the balance sheet then the whole theory will obviously fail.
So far whatever he (Manish Acharyay) has promised has executed on that line or may be more. Let’s see how long he delivers.

5 Likes
50

Jeena Sikho Lifecare’s quarterly PAT already exceeds Healthcare Global Enterprises (HCG)’s trailing annual PAT.
On earnings alone, HCG screens more expensive.
But markets aren’t pricing current PAT - they’re pricing durability.
1.Jeena Sikho: high growth, asset-light, high execution risk
2.HCG: capital-heavy, steady oncology play, slower growth, higher perceived predictability.
Different business models. Different risk profiles. Different futures being discounted.
Execution will decide which valuation sustains.

6 Likes
51

JSLL is a rare 40%+ CAGR growth company that is fundamentally redefining the Indian healthcare landscape. question its valuation relative to asset-heavy giants like HCG, the market is rewarding JSLL’s asset-light, tech-enabled wellness model.

Acharya Manish has consistently “walked the talk,” and the guidance for 1000 Cr PAT signals massive institutional scale. The shift to Big 5 auditors (Walker Chandiok & Co LLP) provides the transparency needed to justify a 50+ PE. Unlike traditional hospitals burdened by multi-crore machinery, JSLL scales through protocols and “Integrated Medicine”—a model that is high-margin and highly replicable.

In reality, simplicity that scales often outperforms complexity that stagnates. JSLL isn’t just a clinic; it’s a lifestyle platform capturing the vast chronic care market. With validated governance and aggressive expansion, it remains a powerhouse for the next five years.

Disclosure : Invested.

7 Likes
52

Boarders following the company, what is the PAT to cash flow conversion & FCF? if anyone has calculated, please share.

53
Period PAT (Profit After Tax) CFO (Cash Flow from Ops) Conversion Ratio
FY 2023-24 ₹69.21 Cr ₹36.69 Cr 53.0%
FY 2024-25 ₹90.73 Cr ₹68.63 Cr 75.6%
H1 FY 2025-26 (Apr–Sep) ₹110.10 Cr ₹111.00 Cr 100.8%
7 Likes
54

Thank you. And Free Cash Flows?

55

I tried to model JSLL and find out its intrinsic value with the help of claude. Assumptions made are to the best of my knowledge. Hoping to hear the community’s view on this and let me know if you believe some assumptions need to be tweaked.

TLDR: My analysis says it’s Undervalued at the current valuation and if we hold it for 10-11 years we can earn a 21.2% CAGR CAPITAL GAINS (ASSUMING ITS EV/EBITDA MULTIPLE COMPRESSES BY ALMOST HALF TO WHAT IT IS TODAY) and not taking into account the dividend payouts.

PS: The Comps Sheet still needs some work to be done.

JSLL Financial Model.xlsx (102.1 KB)

1 Like
56

have you ever heard them on FM? i think they have stopped doing this only recently but it was there for good several months i remember. either they have changed their strategy deliberately or by some regulations i dont know. also try to talk to any patient, u might know, with terminal disease who had visited them?