Is it good for investment? Fundamental analysis? Long term view of stock
Company Profile:
Jeena Sikho Lifecare, headquartered in Zirakpur, Punjab, and having a major business execution centre in Delhi, was founded in 2017 by Mr. Manish Grover (popularly known as Acharya Manish Ji) and Mrs. Bhavna Grover. We have a pan-India presence through an extensive network of clinics and integrated hospitals, offering comprehensive healthcare services and products. In a recent strategic move, we have
ventured into the international healthcare arena, starting with Vietnam, where we have entered a memorandum of understanding (MoU) to establish a hospital. We are listed on the National Stock Exchange
The public issue of Jeena Sikho IPO was open on Mar 30, 2022 and closed for subscription on Apr 7, 2022. Issue price: ₹150 Per Equity Share
CMP: Rs. 731
MCAP: 1,817 Cr.
Promoter holding : 67.9 %
Change in Prom Hold : 1.71 %
ROCE : 52.4 %
ROE : 40.8 %
Debt to equity : 0.01
H1FY24: Rev at 157cr vs 85cr
EPS – H1 23.04 vs 8.36, FY23 ( Full year) EPS was 25rs, H2 should be stronger because of new hospitals and clinics opened( details given below)
Recently bonus (Bonus 4:5) was announced, But above EPS is not adjusted for bonus. However, as stock price also slashed from around Rs. 1400 to ~ Rs. 800/- at the time of bonus, so, PE should more or less be same.
Promoter holding increased from 66.20% (March 2023) to 67.91% (Sep-2023)
FII bought 2% of the stocks
119+ hospitals and clinics ( 84 clinics (4 Suddhi Clinics and 80 franchises), 14 HIIMS and 21 Shuddhi Panchakarma Day Care Clinic)
1563 beds(820 operational beds)
Spread across 117 cities
FY-2022-2023
Opened large hospitals in Lucknow, Jaipur and Navi Mumbai and 20 more mid and small hospitals across the country
Opened the first-of-its-kind 1,000-bed HIIMS Hospital in Meerut.
Signed an MoU to open a hospital in Vietnam, with a focus on expanding footprints overseas and serving people worldwide
FY-2023-2024 and Future
During H1FY24, opened 6 new centers in Bhopal, Sunder nagar, Kangra, Chennai and Patna.
Out of these Chennai and Patna has facility of 33 and 49 beds respectively. (Link: https://nsearchives.nseindia.com/corporate/JSLL_06102023164321_Update_signed.pdf)
The Company is focused on expansion and targets to enter markets in the Southern Indian states to maximize revenue potential.
It is also evaluating its growth strategy in the international market.
Further, it plans to collaborate with Central and State Governments to set up AYUSH treatment facilities under various models.
Conclusion: As we can see company is expanding its foot prints to new geographies especially to south India ( where Ayurveda is more accepted than North India), Overseas and plan to collaborate with Govt., so I think it is yet to start and has lot of potential in near future. I am expecting 10-20x in near 5-7 years if everything goes as per company’s plan.
Disclosure: This company’s headquarter is near to my house ( less than 1km.) and I have met the owner in person couple of years ago ( For my father’s treatment) when he started the business in our area. I have made good position in this stock at around Rs. 850 for long term.
Note: I am not SEBI registered person. Above views are only personal views and is not a recommendation. It is only for education purpose. Please contact your financial advisor before taking your financial decisions.