Chandan Healthcare Ltd. is gearing up for its initial public offering (IPO), set to open from February 10 to February 12, 2025, with an aim to raise approximately ₹107.36 crores. The IPO will consist of a fresh issue of 44,52,064 equity shares and an offer for sale of 22,99,936 equity shares. Operating primarily in the diagnostic sector, Chandan Healthcare provides pathology and radiology testing services across North India, with a network that includes one flagship laboratory, seven central laboratories, and over 300 collection centers. The funds raised will be allocated for expanding diagnostic facilities and enhancing operational capabilities.
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Expert Opinions
Market sentiment for the Chandan Healthcare IPO is positive, reflecting a growing interest in the healthcare sector, particularly in diagnostic services, driven by increasing awareness of health issues. Company strengths include a robust operational framework with a network of over 300 collection centers and multiple laboratories, enhancing its service reach and customer base. Risks and challenges involve potential regulatory changes and competition from established healthcare providers, which could impact market share and profitability.
Valuation analysis for FY 2024 reveals a return on equity (ROE) of 47.60%, return on capital employed (ROCE) of 35.04%, and return on net worth (RoNW) of 39.61%, indicating strong financial health and effective resource utilization. From a long-term investment perspective, Chandan Healthcare is well-positioned to capitalize on the increasing demand for diagnostic services.
Investor Considerations
Investors considering the Chandan Healthcare IPO should analyze several key factors. Company performance and fundamentals indicate strong growth, with revenues rising from ₹137.03 crores in FY2023 to ₹177.96 crores in FY2024, alongside a profit after tax of ₹16.36 crores, reflecting effective operational management. The sector outlook is promising, driven by increasing demand for diagnostic services as healthcare awareness grows.
The IPO valuation reveals a profit after tax (PAT) margin of 9.26%, and a debt-to-equity ratio of 1.02, indicating a manageable level of debt relative to equity. Growth prospects remain robust as the company plans to expand its diagnostic centers and enhance service offerings. However, potential risk factors include competition from both organized and unorganized players in the healthcare space. A long-term investment horizon is advisable as Chandan aims to capitalize on the growing healthcare market for sustained growth and profitability.
| Date | GMP | Trend |
|---|---|---|
| 15 Feb 2025 11.28 | ₹00 | --- |
| 14 Feb 2025 10.45 | ₹00 | Down |
| 13 Feb 2025 18.14 | ₹5 | Down |
| 11 Feb 2025 11.04 | ₹10 | --- |
| 10 Feb 2025 10.37 | ₹10 | --- |
| 09 Feb 2025 12.20 | ₹10 | Down |
| 08 Feb 2025 20.44 | ₹15 | --- |
| 07 Feb 2025 20.05 | ₹15 | --- |
| 06 Feb 2025 20.00 | ₹15 | Up |
| 05 Feb 2025 11.40 | ₹00 | --- |
| 03 Feb 2025 18.41 | ₹00 | --- |
FAQs
The Grey Market Premium showed reasonable accuracy in predicting Chandan Healthcare’s listing performance. While the GMP of ₹0 suggested a flat listing at the issue price, the stock delivered a modest gain of 3.84%. With a small prediction error of 3.84%, the GMP’s indication of weak market enthusiasm was largely accurate, though it slightly underestimated the marginal positive listing gain.
Chandan Healthcare IPO Current GMP is ₹00.
Chandan Healthcare IPO Expected Returns is 0.00%.
Chandan Healthcare IPO estimated listing price is ₹159.