Dr. Agarwal’s Healthcare IPO Guidance by Paresh Gordhandas, CA & Research Analyst.
The company offers a wide range of eye care services, including cataract, refractive, and other surgeries; consultations, diagnoses, and non-surgical treatments; as well as optical products, contact lenses, accessories, and eye care-related pharmaceuticals. As of the Financial Year 2024, the company holds approximately 25% of the total eye care service market in India.
The healthcare market in India is gradually becoming more organized, and this company is well-positioned to capture a share of that growth. However, certain healthcare services like eye surgeries, dental treatments, and dermatology may continue to be dominated by individual practitioners or standalone medical professionals. Consequently, the company’s growth potential might not reach the same scale as larger hospital chains like Apollo Hospitals or Fortis.
The shares in this IPO are being offered at a high price-to-earnings (PE) multiple of 128.03, which exceeds the PE multiple of major players like Apollo Hospitals. Given the elevated offer price, there is limited potential for significant listing gains. Additionally, with the broader market sentiment turning bearish in recent sessions, this could impact the listing price as well.
Considering these factors, I would recommend avoiding this IPO.
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