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Last Updated : Feb 12, 2018 02:09 PM IST | Source: Moneycontrol.com

Avoid Aster DM Healthcare : HEM Securities

HEM Securities has come out with its report on Aster DM Healthcare IPO , The research firm has recommended to “ Avoid ” the IPO in its research report as on February 09 , 2018

 
 
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Co is of the largest private healthcare service providers which operate in multiple GCC states based on numbers of hospitals and clinics, according to the Frost & Sullivan Report, and an emerging healthcare player in India. Co currently operate in all of the GCC states, which comprise the United Arab Emirates, Oman, Saudi Arabia, Qatar, Kuwait and Bahrain, in Jordan (which is classify as a GCC state as part of co’s GCC operations), in India and the Philippines. Co’s GCC operations are headquartered in Dubai, United Arab Emirates and co’s Indian operations are headquartered in Kochi, Kerala. Co operate in multiple segments of the healthcare industry, including hospitals, clinics and retail pharmacies and provide healthcare services to patients across economic segments in several GCC states through its various brands “Aster”, “Medcare” and “Access”.

Valuation

Company is bringing the issue at price band of Rs 180-190 /sh at EV/EBIDTA multiple of 34-35. Although co’s business looks attractive but losses in H1FY18 with weak financial perfor-mance in FY17 & high valuation at current level fails to infuse optimism in company , hence we recommend “Avoid” on issue .

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First Published on Feb 12, 2018 10:58 am
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