Company Overview:
GPT Healthcare Ltd (GPTHL) is a key regional corporate healthcare company in Eastern India in terms of hospitals and number of beds. The company operates a chain of mid-sized full-service hospitals and provides integrated healthcare services with a focus on secondary and tertiary care. As of Sep’23, the company operates 4 hospitals in Dum Dum, Salt Lake, Howrah in West Bengal and Agartala in Tripura with a total capacity of 561 beds. GPTHL offers a comprehensive range of healthcare services across +35 specialties and super-specialties including internal medicine, diabetology, nephrology, laparoscopic & general surgery etc.
Key Highlights:
1. Strong foothold in under-penetrated markets: The company identified the lack of quality healthcare in under-penetrated and highly populated markets of eastern India and capitalized on the opportunity through the ILS brand operating 4 hospitals with a total bed capacity of 561 beds. The company’s strategic focus on healthcare market in Eastern India helped it to grasp an understanding of regional nuances, patient culture and mindset of medical professional, helping the company create a reputation of delivering quality healthcare at affordable prices among patients.
2. Diversified healthcare offerings: GPTHL’s operations encompasses various levels of healthcare from primary to tertiary services. The company has associated with various consultant doctors in specialty areas to ensure patients have access to a diversified pool of resources and holistic expertise. The company’s specialized ecosystem of doctors and healthcare professionals has enabled GPTHL to expand its reach and leverage market opportunities and gain access to larger number of patients and achieve synergies across verticals, while avoiding dependencies on a limited pool of doctors.
3. Expert doctors and medical professionals: The company’s multidisciplinary approach coupled with high-volume tertiary care model, focus on teaching and research has helped attract and retain a diverse pool of talented doctors, nurses and paramedical professionals. Many of GPTHL’s doctors, physicians and surgeons have received various awards and accolades through the years. The company’s long-standing presence, investment in medical technology and equipment have helped retain wellknown doctors and other professionals, which in turn have helped to draw a higher number of patients.
4. Investment in infrastructure and clinical excellence: The company provides core, medical, surgical, emergency services as well as complex and advanced healthcare services to specialties such as nephrology, diabetology etc. In the Salt Lake Hospital, GPTHL installed a cutting-edge robotic surgical technology and 3D imaging and new renal transplant unit in the Dum Dum Hospital.
Valuation: The company is valued at annualized FY24 P/E and EV/EBITDA multiple of 32.5x/18.1x respectively based on the upper price band on the post-issue capital. It is a mid-sized hospital chain with strategic presence in East-India and a strong brand reputation for providing quality healthcare at affordable prices. The company recorded a strong PAT CAGR of 24.7% between FY21 to FY23. We recommend investors to SUBSCRIBE to the issue.
Click here to download GPT Healthcare Limited IPO Note by SBI Securities
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