Hold Shalby; target of Rs 130: ICICI Direct
ICICI Direct recommended hold rating on Shalby with a target price of Rs 130 in its research report dated January 12, 2021.
January 14, 2021 / 09:03 PM IST
ICICI Direct's research report on Shalby
Shalby reported decent Q3FY21 numbers with revenues growing 9.1% YoY to Rs 132 crore amid continued sequential recovery in elective surgeries and higher Covid treatments. EBITDA margins improved 525 bps YoY to 23.3% due to lower employee and other expenditure stemming from cost rationalisation measures. EBITDA grew 40.7% YoY to Rs 31 crore. PAT grew 106.4% YoY to Rs 17 crore. Delta vis-a-vis EBITDA was due to lower tax rate.
We maintain HOLD and arrive at a target price of Rs 130 (vs. Rs 100 earlier) based on SOTP by valuing hospitals (above six years) at 12x FY23E EV/EBITDA and hospitals (below six years) at 1x FY23E EV/sales.
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