Jupiter Life Line Hospitals IPO total issue size is Rs 869.08 Cr. It consists both a fresh issue and an OFS component, The Jupiter Life Line Hospitals IPO price is ₹695 to ₹735 per share. Jupiter Life Line Hospitals Limited is a multi-specialty tertiary and quaternary healthcare provider in the Mumbai Metropolitan Area and western region of India.
Jupiter Life Line Hospitals is among the key multi-specialty tertiary and quaternary healthcare providers in the Mumbai Metropolitan Area (MMR) and western region of India with a total bed capacity of 1,194 hospital beds across three hospitals as of March 31, 2023
It has been operating for over 15 years as a corporate quaternary care healthcare service provider in densely populated micro markets in the western regions of India and currently operate three hospitals under the “Jupiter” brand in Thane, Pune and Indore, with an operational bed capacity (i.e. census and non-census beds) of 950 beds and 961 beds, as of March 31, 2023.
According to the CRISIL Report, its Thane and Indore hospitals are amongst the few hospitals in the western region of India to provide neuro rehabilitation services through a dedicated robotic and computer-assisted neuro rehabilitation centre.
The Company also operates one of the few multi-organ transplant centres in Thane. Each of its hospitals at Thane, Pune and Indore has been certified by the National Accreditation Board for Hospitals & Healthcare Providers (“NABH”) and has been accredited in the field of medical testing by the National Accreditation Board for Testing and Calibration Laboratories (“NABL”).
In the past, the Thane hospital has also received the NABH Safe-I certification and the NABH ‘Nursing Excellence’ accreditation.
It commenced operations in 2007 with hospital in Thane, Maharashtra and subsequently scaled the operations by setting up a hospital in Pune, Maharashtra in 2017 and acquiring a hospital in Indore, Madhya Pradesh in 2020.
Founder, Chairman and Managing Director, Dr. Ajay Thakker, who has been associated with Company since inception and has over 31 years of experience in the field of medicine and healthcare.
As of March 31, 2023, our healthcare professionals included 1,306 doctors (who work as consultants at our hospitals and include visiting consultants, full-time consultants, minimum guarantee consultants, junior consultants and associate consultants), 1,416 nurses and 1,585 other professionals (including clinical associates, clinical and physician assistants, physiotherapy, paramedical and support staff).
Jupiter Life Line Hospitals IPO: Financials
Revenue from operations
892.543
733.123
486.164
Other Income
10.42
4.021
4.105
0
0
0
Profit for the period / year
72.905
51.128
-2.297
Equity Share capital
56.518
50.867
50.867
Net worth (1)
363.91
288.433
246.441
Earnings per share (diluted)
12.95
9.65
-0.45
Net asset value per Equity Share (5)
64.39
56.7
48.45
Total Borrowings (6)
468.627
495.246
425.522
Post IPO Share capital
65.57
FV
10
IPO price
735
EPS Fy23
11.12
PE Fy23
66.10
Market cap in cr.
4819
Market Cap/sales
5.40
Anchor Investors:
Jupiter Life Line Hospitals IPO: Salient Points
From the OFS of Rs. 327 cr – about half is by by the promoter and half by other individual shareholders.
As per CRISIL the company’s Thane and Indore hospitals are amongst the few hospitals in the western region of India to provide neuro-rehabilitation services through a dedicated robotic and computer-assisted neuro-rehabilitation center.
Thane Hospital is its flagship hospital, where it also operates one of the few multi-organ transplant centers in Thane.
Its hospitals are also located in densely populated micro markets which have a low presence of chained hospitals, which we believe provides us an opportunity to offer services to a larger population and helps our patients with greater access and connectivity to healthcare services. The hospitals function on an ‘all-hub-no-spoke’ model with each hospital being a full-service hospital, operating independently and serving the healthcare needs of patients, right from diagnostics to surgery and rehabilitation.
Its clinical and operational track record has led to build a brand presence largely on word-of-mouth marketing which is demonstrated through patient volumes and payor mix (i.e., patients’ payment mode). Patient volumes (comprising inpatient and outpatient) at its hospitals were 447,573, 645,446 and 773,937 in Fiscals 2021, 2022 and 2023, respectively. The payor mix showcases that we have very low dependence on central and state government schemes for its revenues, with payments made through (i) self-payers; (ii) insurance companies, third party administrators and corporations; and (iii) government schemes, accounting for 45.33%, 53.35% and 1.32%, respectively, of our income from hospital services in Fiscal 2023.
In Fiscals 2021, 2022 and 2023, the attrition rate for doctors (who work as consultants at the hospitals) was 3.40%, 5.08% and 1.85%, respectively which speaks well about it.
Its Thane and Pune hospitals are “greenfield” projects, and all three hospitals are located on land owned by it on a freehold basis, which it believes ensures operational control and allows it consistency in quality care resulting in long-term operational and financial efficiencies.
The three existing hospital contributed as depicted below:
Hospital
2021 (Rs. Million)
%
2022 (Rs. Million)
%
2023 (Rs. Million)
%
Thane
3,135.94
64.50%
4,236.23
57.78%
4,835.51
54.18%
Pune
1,475.02
30.34%
2,336.56
31.87%
3,037.71
34.03%
Indore
250.68
5.16%
758.44
10.35%
1,052.21
11.79%
Total
4,861.64
100.00%
7,331.23
100.00%
8,925.43
100.00%
There is good traction across all hospitals
The chain is mainly focused on Western India.
It is currently in the process of developing a multi-specialty hospital in Dombivli, Maharashtra, which is designed to accommodate over 500 beds and has commenced construction in April 2023.
Thane hospital has 70% occupancy, Pune 60%, indore 40% as it is relatively new. Good contribution expected from Indore and Pune Hospitals.
Key operational parameters
Particulars
Fiscal
2021
2022
2023
In-patient
In-patient volume
24,553
34,650
42,956
In-patient income (₹ in million)
3,972.31
5,760.00
7,101.42
Out-patient
Out-patient volume(2)
423,020
610,796
730,981
Out-patient income (₹ in million)
862.00
1,501.94
1,705.88
Revenue from operations (₹ million)
4,861.64
7,331.23
8,925.43
Average occupancy rate (%)(3)
45.25%
53.96%
62.61%
Average revenue per occupied bed (“ARPOB”) (₹)
43,946
48,711
50,990
Average length of stay in hospitals (“ALOS”) (days)
4.48
4.30
4.02
in March 2023, Jupiter Life Line Hospitals commissioned additional 50 beds in Pune hospital and are in the process of setting up a new hospital in Dombivli, Maharashtra, and further intend to expand its bed capacity in other hospitals in the future.
Peers: Its Average Revenue per Operating Bed (ARPOB) stands at Rs. 50,990 which is higher than similar size peres Narayan, among Yatharth, KIMS Rs. 30,000, end slighly better than Rainbow Rs. 49,000. The EBITDA margin of 24% for FY23 is slightly lower than some peers but one can expect a pickup post debt repayment and pick up at Indore hospital which started as late as Jan 2020 and recorded occupancy of 40% in FY23.
Company will become debt free after the IPO as the fresh proceeds will go for repayment of debts and on account of this 42 cr. is expected to be added to the bottom line.
On FY23 earnings Jupiter Life Line Hospitals IPO is valued at 66x P/E.
Jupiter Life Line Hospitals undertook pre-IPO placement and mobilised Rs 123 crore from institutional investors . Investors participated in the pre-IPO round include SBI Magnum Children’s Benefit Fund, SBI Optimal Equity Fund, SBI Healthcare Opportunities Fund, Neuberger Berman Emerging Markets Equity Fund, Neuberger Berman Europe Holdings LLC and Neuberger Berman Strategic India Equity Master Fund Holdings Ltd., In addition, High Conviction Fund – Series 1, Ashoka India Equity Investment Trust PLC, Think India Opportunities Master Fund LP and DC Ikka Ltd.
Iam likely to apply in the Jupiter Life Line Hospitals IPO even as the company is richly valued vis a vis its peers and valuation are fully streched.
GMP as reported on social media is around Rs. 200-250.
Please do your own diligence. There is good amount of risk in all equity investments.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
