ICICI Direct's research report on Shalby
Started by renowned orthopaedic surgeon Dr Vikram Shah, Shalby is a multi-specialty hospitals chain with expertise in joint replacement. Revenue-wise breakup Q3FY23: Arthroplasty: 43%, Critical care & General medicine: 9%, Cardiac science: 9%, Orthopaedic: 8%, Oncology: 10%, Neurology: 5%, Nephrology: 4%, Others: 11% • Shalby registered a blended ARPOB of Rs 36,291 and ALOS of 3.74 days (without day care procedures) in Q3FY23 • Acquisition of US based Consensus to diversify into related implant business besides supporting arthroplasty and orthopaedic segments.
Outlook
We maintain BUY due to 1) Diversification towards other specialities especially high end surgeries 2) Asset light model via franchisee drive, 3) Launch of implant business in newer geographies and ramp up of production likely to aid growth. We value Shalby at Rs 180 based on SOTP valuation.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
