Narayana Hrudayalaya Ltd IPO Message Board (Page 36)

Clap for Uchit Patel one more time. You are the first one who says company is in loss in year 2015 on thi site. Chittorgarh also posted wrong information. Now with you effort Chittorgarh also understand their mistake and posted true information.
We need analysts like you, who gives right information and suggestions to investors.

Certainly this will not be last IPO of this F.Y. May be good for gamblers / risk takers. Many good IPOs / OFS from PSUs are in pipe line.
Cautious investors may give a skip to this IPO and wait for better opportunities in future.

IMO good time to buy some good share from secondary market specially PSU bank have corrected big time

NC axis alright but yes I do not like with axis I am owning from UTI days

For volatility Yes Bank is King. It will give much more return from current level compared to Axis and Asquality is top class but financing is a little different. I am looking for 635 levels to pick up for a 50% gain in 6 months.

Some analysts believe it will be another IndiGo becaof low cost model. I am not agree with this. If it is IndiGo then why company is not making any money since last five years. IndiGo is making money since many years.
Company is asking very high premium. It is totally baseless comparison of NHL with IndiGo.

agree 100%

Pineapple has apple in it but does not mean there''s apple''s flavor in pineapple. A healthcare chain is supposed to be profitable & consistent due to pricing power while a Airline is supposed to suffer from a lot of volatility due to oil price & lack of pricing power.

Pls update NH premium n kostak

Thanks D Pandey, you hv explained it nicely

In your IPO Review for Narayana Hrudayalaya Ltd ... You had concluded, "Although IPO pricing is the main concern, hype created by business model and rising fancy makes this offer a worthy bet for short to long term" ... Do you still stand by that conclusion, or have you now changed your opinion?

My recommendation still holds good as it still has some GMP activities, so some gain on listing is not ruled out and for long term it is a safe bet, but for medium term, there are chances of it going in discount post listing, so those who want to bet for long term can start parking their funds.

To Eagleye,
I am following your comments on site. It looks like you are very experienced person. But it is very strange to me you are not able to calculate P/E by yourself. Uchit Patel also calculated P/E more than 200 in his analysis.
It''''s very simple:
Company is selling 12% of shares in this IPO. 12% shares comes to total 24500000 shares. Then 100% shares comes to total 204166666 shares. We have six months ended Sep. 2015 nos. Company posted profit of Rs. 12 crore on Rs. 788 income. If we estimate the same growth for next 6 months then company will post Rs. 25 crore profit on Rs. 1576 crore income.
Then EPS = 250000000/204166666 = 1.22
Now company is asking Rs. 250 per share then P/E = 250/1.22 = 204

Thanks for your inputs
It was very helpful indeed

Narayana Hrudayalaya GMP dropped even more
Now GMP is 32-34 per share

I am from Bengaluru and i visit NH Health city 3-4 times a year for health checkup of my family members. It is a fantastic health chain and it does lots of social work, is not money minded and has generated lots of goodwill.
Speaking from personal experience, it provides same healthcare standards as Fortis does but for 35-40% less cost. While this may be good in many ways, it certainly wont help the bottom line.
After reading DRHP, i echo the sentiments of respected boarders here.Valuation is too high. I would rather pick this stock in secondary market if at all i pick.

Tejnaksh Healthcare has shown growth in profits and income to almost double.
Already up 10 % today.
Catch it before its too late.
whenc such a cheap valuation stock is available in secondary markey why would one go for expensive stock like NHL


Peer Group Comparison (Rs. in Millions)

Company Name Year End Net Sales PBDIT PAT EPS PBIDTM % PATM % ROCE % RONW %
Tejnaksh Healthcare 201403 14.51 9.62 5.72 5720.50 66.31 39.42 41.97 35.66
Apollo Hospital Ent. 201403 38616.31 6138.57 3307.20 23.77 15.90 8.56 13.38 11.62
Transasia Bio-Medicals Ltd. 201403 4725.90 1616.10 1357.20 339.30 34.20 28.72 24.55 20.49
Dr Lal Pathlabs 201403 5407.88 1343.04 739.53 132.49 24.83 13.68 55.26 40.23
Novartis Healthcare 201403 14271.40 1584.60 645.50 107.58 11.10 4.52 49.50 33.53

Kostak rate?

STAY AWAY FROM EXPENSIVE IPO WHICH ARE ASKING P/EMULTIPLE OF 200. THEIR PROFIT MARGIN IS TOO LESS AND STILL THEY HAVE GUTS TO COME WITH HIGH P/E. ONLY COMPANIES WITH HIGH PROFIT MARGIN CAN EXPECT SUCH HIGH P/E

INSTEAD IF YOU WANT TO BUY ANYTHING IN HOSPITALITY SECTOR GO FOR TEJNAKSH HEALTHCARE WHICH IS RECENTLY LISTED SME AND AVAILABLE AT CHEAPEST P/E AMONG HEALTHCARE SECTOR. THE PRICE OF TEJNAKSH IS RULING AT SAME IPO PRICE BUT EXPECT GREAT RETURNS IF YOU HOLD FOR 6-8 MONTHS.
REMEMEBRE DR ASHISH PATIL OF TEJNANKSH HEALTHCARE HOLD GUINESS BOOK OF WORLD RECORDS AND LIMCA BOOK OF RECORDS AND MULTIPLE AWARDS IN UROLOGY SECTOR. THEY HAVE 24000 SQ FT HOSPITAL

TEJNAKSH HEALTHCARE WITH GREATER PROFIT MARGIN IS AVAILABLE AT 14 P/E AND ONLY A 2.43 CRORE IPO WHEREAS NHL with lower margin asking P/E OF 200 and large issue.

Decide urself. if you want to buy anything in healthcare buy Tejnaksh for long term and leave NHL which is too risky bet.

I read the red herring and if the decision was based on fundamental Narayana Hrudayalaya IPO the valuation figures, investing in Narayana Hrudayalaya IPO is not advisable since Narayana Hrudayalaya posted a loss latest year, however six month performance is a better fit for the valuation calculation. At the higher end of the price band, Narayana Hrudayalaya is asking for a valuation of 201 times on its expected earnings for FY2016. This is too steep considering 59 times for Apollo Hospitals which is much bigger a player than Narayan Hrudayalaya. Apollo Hospitals also beats Narayan Hrudayalaya on warren buffet indicator or pre request however even indigo failed in one such indicator Narayana Hrudayalaya “return on net worth” front return to -1.4% and apollo is around 10.7% so lot of catching up. the biggest quest is this possible if it does then Narayana Hrudayalaya will be good bet.

if you compare the three players Narayana Hrudayalaya is at infant stage so improvement in revenue is high however market does not reward much for loss making companies even with big growth potential so any growth story will be with lot of pain. but given the scarcity of listed organised hospital and health players in the market despite high valuation Narayana Hrudayalaya IPO will get good response. It is also worth highlighting that Fortis Healthcare is trading close to its 52-week high levels despite being in losses.

for me or any investor it will be difficult to get comfortable with valuations, an investment decision in Narayana Hrudayalaya IPO has to be necessarily a call on Devi Shetty.
So brain says no avoid but my heart says apply very very hard call. AVOID on fundamental grounds

Dear Septa,

Thanks for giving your detail opinion on Narayana Hrukayalaya IPO, if you have time will you please explain in short, that what is warren buffet indicator? just for mu knowledge sack.

Regards,

Chandrvadan Jani.

Nicely put.

It is evident that stock is highly overpriced.. question is how lead managers arrive at this price band (shall not the word greedy promoters as even Dr Shetty is diluting some stake).
Also even if the model in different, not a single penny shall be going for company growth. How much its worth to apply through IPO route !!!

We too in black list of karvy ,never allotted any shares in ipo by corrupt karvy ,after closing dp in karvy......

Talk to ex-employees of Karvy & you understand the rampant corruption there. I mean not getting in one is ok but not getting in all is too much to be a coincidence.

Issue Name
      

Price Band
      

Grey Market Premium
      

Kostak Price

(Minimum Application)
Narayana Hrudayalaya Limited
      

245 to 250
      

45 to 50

(High Rs. 65)
      

550 to 600

This is a fantastic hospital chain, Dr Devi Shetty is the brand, 5K+ operational beds & niche concept compared to other focusing on world class yet affordable healthcare. I had face to face encounter with Dr Devi Shetty & also through video conference. Undoubtedly a gift in the Indian healthcare segment along with Asian Institute of Gastroenterology or sister concerns of AIG (Hyderabad).

However even though top-line has been fantastic with a steady growth but bottom-line hasn''t been consistent with wafer thing margins. A little increase in billings, coupled with a little margin expansion can do wonder for NH in medium term. Even changing the mix of general to premium beds to a higher ratio of premium beds can work towards margin improvement. But we are here to make money & safeguard our investment and the asking price is steep with sometimes declaring loss as well.

Also, this is managed by Karvy, which never allotted a single lot to me in case of oversubscription in many IPO''s. I doubt the integrity of Karvy a lot personally.

All in all I will give it a miss but I hope it goes through & we see listing. It could be possible that so far they focus-ed on expanding but once public needs to focus on profit as well & we might have fantastic, sustainable, defensive (to economic cycles) company.

For now I am happy with Kovai which is another fantastic company and I have a small holding in that company with proven track record.

I think comparing Apollo with Narayana is not just!

Apollo is Jet airways with quality service and high price.

Whereas NH Is another Indigo with affordable medical aid
I know bottom line is important no social aid can help retail investors
But its definitely a long term safe bet
Defensive stock one can keep it for good return in near future
Even for FY 16 their performance is apt

Pinky jain

Interglobe Aviation''s Indigo is a classy airline making consistent profit defying many beliefs of the industry, whereas NH hasn''t been consistent with bottomline. Also, most people are subscribing to IPO for quick listing gains and that seems difficult in NH.

I will buy for long term if the performance improves from the secondary market.

Narayana Hrudayalaya Limited (Page 481 of RHP)
Issue Closing Date: 21 December 2015
Finalisation of Basis of Allotment: 02 January 2016
Initiation of Refunds / Unblocking of ASBA: 04 January 2016
Credit of Shares to Demat Accounts: 06 January 2016
Commencement of Trading on Stock Exchanges: 07 January 2016

Eagleye Sir Please update the Narayana Gmp? Tnx

Narayana Hrudayalaya
Issue closing: 21 December 2015
Basis of Allotment: 02 January 2016
Refund: 04 January 2016
Credit to Demat: 06 January 2016
Listing: 07 January 2016

Registrars is karvy so listing may be on 4 or 5 January .....

Septa ji , what''s ur view on NH ipo ?

avoid

NH IS NEXT APOLLO HOSPITAL
KOSTAK 700 IN JAIPUR