The shares of one of the leading ayurvedic healthcare service providers in India moved up by nearly 2.3 percent to hit a new 52-week high at Rs. 2,004, during the trading session of Tuesday.
Stock Performance:
With a market capitalisation of Rs. 4,921.8 crores, at 02:33 p.m., the shares of Jeena Sikho Lifecare Limited were trading in the green at Rs. 1,979.8, up by about 1.02 percent, as against its previous closing price of Rs. 1,959.75.
The shares of Jeena Sikho Lifecare have delivered multibagger returns of nearly 170 percent of returns in one year, while around 21.6 percent of positive returns in the last one month.
Shareholding Pattern:
As per the September 2024 shareholding pattern, the Promoters hold a 65.84 percent stake in the company, while Retail Investors and Domestic Institutional Investors (DII) hold a 30.04 percent and 0.07 percent stake in Jeena Sikho Lifecare, respectively.
The Foreign Institutional Investors (FIIs) holding increased from a 0.26 percent stake in Q4 FY24 to a 4.05 percent stake in Q2 FY25.
Financials & Capex:
The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 59 percent, rising from Rs. 204 crores in FY23 to Rs. 324.4 crores in FY24.
Likewise, during the same period, the company’s net profit increased from Rs. 33.7 crores to Rs. 69.2 crores, representing an impressive growth of around 105.3 percent YoY.
EBITDA for FY24 reached Rs. 93 crores, representing an increase of around 102 percent YoY from Rs. 46 cores in Q2 FY24, with an EBITDA Margin of 29 percent, up from 23 percent, during the same period.
Jeena Sikho Lifecare has experienced a compression in EBITDA margins on both a year-on-year and sequential basis. This is primarily due to increased operating expenses related to the company’s expansion efforts.
Further, the total number of operational beds has increased from 1,277 in FY24 to 1,530 in H1 FY25, marking a robust 20 percent growth. This expansion has played a key role in driving the increase in inpatient department (IPD) patient volume.
Capex for Bed Facility: The typical capex for establishing a 100-bed facility of the company ranges between Rs. 2.5 crore and Rs. 3.5 crore, with an estimated Rs. 2.5-3.5 lakh spent per bed. This capex encompasses the construction of a leased space of approximately 1.0-1.25 lakh square feet, designed for 100 beds.
The capex also includes expenses for furniture and fixtures (~Rs. 45-50 lakh), medical equipment (~Rs. 60-65 lakh), and other varying costs across different facilities for a total of around Rs. 1.5-2.5 crore.
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Future Outlook:
The company is focused on improving the utilization rates of its existing assets, launching new centres and adding beds to existing facilities, exploring over-the-counter (OTC) sales channels for medicine distribution, expanding its portfolio by introducing new product kits, and enabling cashless insurance to aid volumes. Additionally, it aims to increase its coverage under the Government Panel/AYUSH.
With a pipeline of 20 new facilities in development, coupled with the recently added bed capacity, Jeena Sikho Lifecare is positioned for significant revenue growth in the remainder of the current year and into FY25, substantially expanding its service footprint.
Key Financial Ratios:
In terms of key financial metrics, Jeena Sikho Lifecare has reported a Return on Equity (RoE) of 90.2 percent and a return on capital employed (RoCE) of 63.6 percent. Additionally, the company’s debt-to-equity ratio stands at 0.22.
About the company:
Incorporated in 2009, Jeena Sikho Lifecare Limited is engaged in the business of trading of Ayurvedic Medicines across the PAN India basis and providing Ayurvedic therapies through its hospital network.
The company offers a diverse portfolio of Shuddhi-branded herbal and Ayurvedic products, catering to various health concerns, and its existing sales channels include call centres, e-commerce, and its healthcare centres.
The company was listed on 19th April 2022 with an issue price was Rs. 150, and has raised Rs. 55 crores from the IPO.
Written by Shivani Singh
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