🧠 At a Glance
Yatharth Hospitals has quietly built a mini-empire across Noida and nearby regions. Occupancy is strong, margins are healthy, and QIP money is flowing like saline in summer. But at 46x P/E with 11% ROE, is it time for a financial health check-up?
1. 🩻 Introduction with Hook
In a world where private hospitals often charge ₹3,000 for an aspirin and a smile, Yatharth Hospitals is… surprisingly efficient.
- Fastest-growing smallcap hospital chain in North India
- 7 hospitals, 87% of beds in metro cities
- 150%+ 5-year PAT CAGR (yes, triple digits)
- Occupancy >80% in Noida units
But now comes the hard part: post-IPO life, new hospitals, and keeping margins stable in an inflationary world.
2. 🏨 Business Model (WTF Do They Even Do?)
Yatharth is a multi-specialty hospital chain across Tier-1 and Tier-2 cities in North India.
🏥 Operational Units:
- Noida: 250 beds (83% occupancy)
- Greater Noida: 400 beds (66%)
- Noida Extension: 450 beds (60%)
- Jhansi-Orchha: 305 beds (47%)
- Faridabad (New): 200 beds (28%)
🏗️ Upcoming:
- Model Town, Delhi: ~300 beds
- New Faridabad facility: ~400 beds
💡 Most hospitals have strong ICU presence, tech infra, and specialization in trauma care, neuro, cardiac, ortho, etc.
3. 💉 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 478 | 635 | 880 |
| Net Profit (₹ Cr) | 66 | 114 | 131 |
| OPM | 28% | 29% | 25% |
| ROE | 10% | 14% | 10.5% |
| EPS | ₹10 | ₹13.3 | ₹13.55 |
📈 3-Year Sales CAGR: 33%
📈 5-Year PAT CAGR: 152%
🔻 FY25 margins slipped a bit as new hospitals scale up.
4. 🧮 Valuation – Is It Cheap, Meh, or Crack?
- P/E: 46x – smallcap pricing like it’s Max Healthcare already
- P/BV: 3.7x
- Market Cap: ₹6,000 Cr
- Fair Value Estimate: ₹460 – ₹520
Based on 30–35x FY26E EPS of ₹15–₹17
Currently priced for perfection. Margin dip in FY25Q4 = warning beep on monitor.
5. 🏗️ What’s Cooking – News, Triggers, Drama
🏥 Expansion Fever:
- New acquisitions in Faridabad and Delhi
- Beds growing from 1,600 → ~2,300 in 18 months
💉 JCI Accreditation:
- First hospital in UP to get it—adds brand + pricing power
💰 Fund Injections:
- ₹620 Cr QIP done at ₹595/share in Dec 2024
- CRISIL rating upgraded to A-/Stable
⚖️ Land Disputes:
- Jhansi land ownership dispute resolved (favourable)
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| FY | Net Worth (₹ Cr) | Debt (₹ Cr) | Net Debt/Equity |
|---|---|---|---|
| FY21 | ₹72 | ₹193 | 2.7x |
| FY25 | ₹1,605 | ₹12 | ~Zero |
🎉 Debt almost wiped off, thanks to IPO + QIP.
📦 CWIP of ₹222 Cr = more beds, more depreciation incoming.
7. 💸 Cash Flow – Sab Number Game Hai
| Year | CFO | Capex | FCF |
|---|---|---|---|
| FY23 | -₹3 Cr | ₹226 Cr | -₹229 Cr |
| FY25 | ₹150 Cr | ₹420 Cr | -₹270 Cr |
💰 Still in capex mode = heavy outflows
🧠 But profitability helping balance things
8. 📊 Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 27% | 24% | 13.8% |
| ROE | 14% | 13.5% | 10.5% |
| OPM | 28% | 29% | 25% |
| Working Capital Days | 79 | 123 | 140 |
😮 WC days ballooning → expansion pain + Jhansi ramp-up
🧂 ROCE dropped as depreciation + new assets kick in
9. 🧾 P&L Breakdown – Show Me the Money
Q4 FY25:
- Revenue: ₹232 Cr
- PAT: ₹39 Cr
- OPM: 25%
- EPS: ₹4.02 (highest ever)
💉 Occupancy >75% in legacy hospitals
🧱 Margin stability = key monitor for FY26
10. 🏥 Peer Comparison – Who Else in the Game?
| Company | OPM | ROCE | P/E | ROE | CMP/BV |
|---|---|---|---|---|---|
| Yatharth | 25% | 13.8% | 46x | 10.5% | 3.73x |
| Max | 26% | 14.8% | 107x | 12.7% | 12.9x |
| Fortis | 20.4% | 12% | 69x | 10.2% | 6.5x |
| Narayana | 23.3% | 20.6% | 50x | 24.5% | 11.1x |
| Krishna | 25.8% | 15.1% | 76x | 19% | 13.3x |
🎯 Yatharth is efficient—but not yet premium.
📈 Potential to grow into the multiples—if ramp-up succeeds.
11. 🏦 Shareholding & Promoter Moves
| Stakeholder | Mar 2025 |
|---|---|
| Promoters | 61.6% |
| FIIs | 4.5% |
| DIIs | 13.6% |
| Public | 20.4% |
📈 FII + DII slowly increasing post-QIP
👀 Promoters increased stake via open market in Feb 2025
12. 🧑⚖️ EduInvesting Verdict™
“Noida’s Max Healthcare in the making—but hold the champagne.”
Yatharth is executing like a boss—profitable, scalable, debt-light, and efficient. But FY26 is make-or-break. Can they:
- Fill the 2 new hospitals?
- Maintain 25%+ margins?
- Justify 45x P/E?
If yes—🚀.
If no—valuation’s got a high fever.
🧮 Fair Value Range: ₹460 – ₹520
✍️ Written by Prashant | 📅 11 July 2025
Tags: Yatharth Hospitals, Smallcap Healthcare, Max Healthcare, Noida Hospitals, Hospital IPO, Expansion Play, QIP Funded Growth, JCI Accreditation, Private Healthcare India, Hospital Stock Analysis
