The company is currently valued at Rs 1,700 crore, much of which has come during the last one year, as the stock gained 155 per cent. In fact, in the last one month alone, the stock has climbed 50 per cent.
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Analysts believe the frenzy to acquire the company’s shares was largely due to expected earnings from home care and Covid-19 treatment as well as the ongoing vaccination drive.
“Shalby has one of the most scalable healthcare models, with focus on orthopedics, which forms 55-60 per cent of revenues. Also, zero net debt should bolster growth,” said Param Desai and Ankeet Pandya of Elara Capital.
At its current price, the stock trades at an attractive 12 times FY23 expected EV/Ebitda. The duo said their FY22/FY23 Ebitda projections stand raised at 6 per cent and 4 per cent, respectively.
The second wave of the pandemic has been gainful for the company. In the last earnings call, the management said with the second wave, its occupied bed numbers rose to 1,350 in April and it expected a similar trend in May.
“This is likely to double the monthly average revenues. Homecare sales also grew robustly in Q4. The company expects Rs 15-20 crore FY22 sales from this segment,” the management said.
In the fourth quarter, Shalby’s revenues grew 33 per cent YoY and 10 per cent QoQ to Rs 150 crore from an estimates of Rs 125 crore on higher average revenue per occupied bed. Ebitda came in at Rs 31 crore. Interestingly, the strong growth was primarily led by higher non-Covid revenues.
Shalby currently operates 11 multispecialty hospitals across India, with an aggregate bed capacity of over 2,000. Another hospital in Nashik is likely to be completed in 6-12 months. A project in Mumbai has been delayed due to Covid-19, the company said.
The stock currently trades at a 52-week high. It is thinly tracked among the brokerages.
