In a special edition of Editor’s Take, Zee Business Managing Editor Anil Singhvi while decoding the launch of KIMS Hospitals IPO (initial public offering) said the investors with risk capacity should invest in the offering with a long-term perspective.
Singhvi pointing out the positives said, the management of the hospital chain is experienced and its revenue and profit growth is good especially in the last two years. He added, its March quarter results are out with an EPS of 26 as compared to EPS 16 in March 2020 and EPS -7 in March 2019.
The company has come into profit from losses and has shown a growth of around 18 and 15 per cent in revenue and profit respectively in the last quarter of fiscal 2021, the market guru said.
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The hospital chain is only operational in Andhra Pradesh and Telangana, which Singhvi terms a bit negative with respect to IPO, as it doesn’t have size as compared to other hospital chain peers such as Apollo Hospital, Max Hospital among others.
The market guru also mentioned, when compared to size of KIMS, the valuations are cheaper 30-35 PE multiple as compared to its listed peers, which could be termed as a positive.
आज से खुलेगा KIMS हॉस्पिटल्स का IPO
कंपनी में क्या है Good, क्या Bad?
— Zee Business (@ZeeBusiness) June 16, 2021
Being reluctant, Singhvi posts less confidence regarding the money will be made through this IPO, unless there’s a high-risk appetite with a long-term view. He calls KIMS Hospitals IPO average as compared to other open IPOs currently.
KIMS IPO begins today (June 16) and will be open till June 18 for an issue size of Rs 2143.74 crore with a price range of Rs 815-825 per share.
Out of the four open IPOs, the market guru positions Shyam Metallics at number one position with confidence that money will be made in long-term, while Dodla Dairy at second number also for long-term investment option.
On the other hand, he said, there is a tie between Sona BLW Precision KIMS Hospitals, as former is certainly good for long term investment, while the latter for the short-term.
However, before concluding Singhvi said, Shyam Metalics and Dodla Dairy are of less risk and safe for investment.