Gujarat Kidney & Super Speciality IPO – Review

1) About the Company

Gujarat Kidney & Super Speciality Ltd., incorporated in 2019, is a fast-growing multispeciality healthcare provider focused on secondary and tertiary care in Central Gujarat. The company operates 7 hospitals and 4 pharmacies with an approved capacity of 455 beds (operational ~340 beds) across Vadodara, Godhra, Bharuch, Borsad and Anand. While it offers a wide range of clinical services, the company has built strong pre-eminence in renal sciences and urology, supported by a growing team of doctors, nurses and allied medical staff. Its asset-light, regional cluster strategy enables efficient utilisation and scalability.

2) Financials and Key Parameters

Financials (Rs. crore)

Period	30-Jun-25	FY25	FY24	FY23
Assets	61.59	55.34	20.53	3.87
Total Income	15.27	40.40	5.48	0.00
PAT	5.40	9.50	1.71	-0.01
EBITDA	8.63	16.55	1.95	-0.01
Net Worth	30.56	25.71	10.80	0.37
Borrowings	4.03	3.88	1.94	—

Key Performance Indicators (FY25)

KPI	Value
ROE	36.61%
ROCE	37.65%
RoNW	36.61%
Debt / Equity	0.15
PAT Margin	23.61%
EBITDA Margin	41.12%

3) Peer Comparison

The company operates in the organised hospital space alongside listed players such as Apollo Hospitals, Max Healthcare, Narayana Hrudayalaya and KIMS. Compared to large peers, Gujarat Kidney is much smaller in scale, but its EBITDA and PAT margins are meaningfully higher, reflecting focused specialities and improving operating leverage. While peers benefit from brand scale and diversification, Gujarat Kidney’s high return ratios and low leverage stand out positively for a regional healthcare platform.

4) Industry Scenario

India’s healthcare sector continues to benefit from rising insurance penetration, higher incidence of lifestyle diseases, and increasing preference for organised hospital chains in Tier-2 and Tier-3 cities. Speciality segments such as nephrology, dialysis and urology enjoy structural demand tailwinds due to ageing demographics and chronic disease prevalence. Gujarat, with its expanding urban clusters and improving healthcare infrastructure, offers long-term growth visibility for regional hospital operators.

5) Valuation View

At the price band of Rs. 108–114, the IPO size of Rs. 250.80 crore (entirely fresh issue) is aimed at acquisitions, capacity expansion and technology upgrades. Given FY25 profitability, ROE/ROCE above 36% and low debt, the valuations appear reasonable to slightly attractive for a high-growth healthcare SME transitioning to a larger platform. However, being a relatively young company, execution of acquisitions and new hospitals will be critical for sustaining growth.

6) Final Verdict

Gujarat Kidney & Super Speciality combines strong financial growth, superior margins and high return ratios with a clear expansion roadmap in a structurally strong sector. While size and operating history are still evolving, the balance sheet strength and focused speciality model provide comfort.
Chanakya Verdict: Fundamentally strong healthcare issue suitable for medium-to-long-term investors. Listing performance will depend on subscription quality and overall market sentiment, but business fundamentals remain the key long-term positive.

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