Valuation Analysis
EPS and PE Ratio Explained
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- FY2025 Pre-Issue EPS: 2.89
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- FY2025 Post-Issue EPS: 1.92
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- PE Ratio (Post Issue): 56.25 – 59.38
The valuation appears on the higher side, especially when compared with peers.
Comparison with Listed Peers
| Company | PE Ratio | EPS | RONW (%) | Revenue (₹ Cr) |
| Gujarat Kidney | 59.38 | 1.92 | 38.38 | 119.97 |
| Yatharth Hospital | 28.64 | 14.46 | 13.09 | 670.55 |
| GPT Healthcare | 23.66 | 5.96 | 21.86 | 400.19 |
Clearly, Gujarat Kidney is priced at a premium.
Utilization of IPO Proceeds
The company plans to use funds for aggressive expansion.
Major Objectives
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- Acquisition of Parekhs Hospital, Ahmedabad – ₹77 crore
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- Payment for Ashwini Medical Centre – ₹12.40 crore
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- Increasing stake in Harmony Medicare Pvt Ltd – ₹10.78 crore
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- New hospital in Vadodara – ₹30.10 crore
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- Robotics equipment – ₹6.83 crore
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- Debt repayment – ₹1.20 crore
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- General corporate purposes
This shows a clear growth roadmap.
Strengths of Gujarat Kidney and Super Speciality IPO
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- Strong regional brand in Gujarat
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- Presence in underpenetrated healthcare markets
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- Consistent revenue and profit growth
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- Improving margins and ROCE
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- Experienced doctor-led promoter team
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- No Offer for Sale (company gets full funds)
Risks and Weaknesses
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- High valuation compared to peers
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- Dependence on the Gujarat region
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- The healthcare business is capital-intensive
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- Regulatory and pricing risks under government schemes
Promoters and Management Profile
Promoters include:
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- Dr Pragnesh Yashwantsinh Bharpoda
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- Dr Bhartiben Pragnesh Bharpoda
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- Dr Yashwantsingh Motisinh Bharpoda
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- Anitaben Yashwantsinh Bharpoda
A doctor-led management team brings operational expertise and credibility.
