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Ventura Wealth Clients
2 min Read

GPT Healthcare IPO will soon be listed on the Indian stock markets. With the healthcare sector booming over the past few years, investors believe the GPT Healthcare IPO to be a good opportunity for their IPO investment. Before you subscribe to the issue, however, have a look at the fundamentals of the company.

GPT Healthcare IPO: fundamentals and financials

While the headline figures like ₹40 crore fresh issue and February 29th listing grab attention, there's more to the story. Here's a closer look.

  • Financial Performance: Revenue growth of 7.11% between FY22-FY23 paints a positive picture. However, a 6.37% drop in PAT raises concerns about profitability. Dig deeper into the DRHP to understand the reasons behind this decline and analyse their future impact.
  • Hospital Locations: GPT operates across Kolkata, Agartala, Dum Dum, and Howrah, focusing on Eastern India. Understand the healthcare demand in these specific regions and the company's ability to cater to it.
  • Employee Strength: Boasting over 1,800 employees, including consultants, reflects a strong workforce. Analyse the employee composition, experience levels, and staff turnover rate to assess their impact on service quality and operational efficiency.

Beyond the surface

  • Competitive Landscape: The Indian healthcare market is fiercely competitive. Analyze how GPT fares against established players like Apollo Hospitals and newer entrants like Max Healthcare in terms of specialities offered, brand recognition, and geographic reach.
  • Expansion Plans: Understand the company's aspirations for growth. Are they planning to add new hospitals, expand specialities, or venture into different regions? How will these plans be funded, and what are the potential risks and rewards?
  • Valuation: The final offer price will significantly impact the IPO's attractiveness. Compare GPT's valuation with listed peers like Fortis Healthcare and Narayana Health based on financial ratios like Price-to-Earnings (P/E) and Price-to-Book (P/B) to assess its relative value.

Conduct your due diligence

Investing in an IPO involves inherent risks. Conduct thorough research and consider the following:

  • Review the DRHP: This document provides detailed information about the company's financials, business model, risks, and future plans. Analyze it carefully to understand the nuances of the offering.
  • Seek Expert Advice: Consult with a financial advisor who can assess your risk tolerance and investment goals and provide personalized guidance on whether this IPO aligns with your portfolio strategy.
  • Stay Informed: Monitor news and analyst reports to stay updated on any developments related to the IPO and the company's performance.

Research is important

The GPT Healthcare IPO presents an opportunity, but don't get swept away by the excitement. Conduct thorough due diligence, weigh the risks and rewards carefully, and make an informed decision based on your IPO investment goals and risk tolerance. Remember, the stock market is dynamic, and past performance is not necessarily indicative of future results.