Madhavbaug, also known as the Vaidya Sane Ayurved Laboratories, is a medical service institution. The Company is engaged in treating chronic ailments and severe diseases like diabetes, cardiac disease, hypertension, and many other acute chronic and severe diseases. In addition, through its medical facility, the Company also treats obesity. The treatment facility of the Company holds a technology that is a combination of modern technology and the traditional Ayurveda. In this article, we take a closer look at the Madhavbaug IPO Review and its possible future prospects.
Madhavbaug uses a highly innovative, multidisciplinary, and non-invasive method to treat severe and chronic ailments. As per the Company’s latest records on November 30, 2021. It operates nearly 274 clinics in different states such as Maharashtra, Uttar Pradesh, Karnataka, Madhya Pradesh, Delhi, Gujarat, Goa, and Chhattisgarh. Of the total 274 clinics, 52 of them are owned by the Company, while 222 are owned under the franchise clinics. In addition, Madhavbaug also operates two multi-specialty cardiac rehabilitation and prevention hospitals. These are in Nagpur and Khopoli. Madhavbaug also holds an online presence with the sales of various products under the Madhavbaug Wellness portal and their online application known as the MIB Pulse App. The application has been specifically built up for heart patients.
SERVICES PROVIDED BY THE MADHAVBAUG:
The services provided by Madhavbaug Healthcare and the super-specialty hospital of the Company are as follows:
1)Heart Failure Reversal Therapy
2) Ischemia Reversal Programme
3) Endo protector
4) Primary Prevention Programs such as Comprehensive Diabetic Care, Obesity Management
5) Lipid Management Programs
6) Hypertension Management Program
7) Secondary Prevention & Rehabilitation Programs including Plaque Stabilization Therapy, Diabetic Complication Management.
8) Hypertensive Complication Management
9) Total Heart Revitalization Therapy
10) Blockage Management Program
11) Hospital-Based Treatments which include Intensive care cardiac program and Critical Care Cardiac Programme
OBJECTS OF THE ISSUE:
The objects of the issue are as follows:
- Funding for the Brand Enhancement along with the advertisement expenses
- General corporate purpose
MADHAVBAUG IPO DETAILS:
Madhavbaug Healthcare Limited, the Company under the parent group of Vaidya Sane Ayurved Limited, recently got approval from SEBI to float their IPO in the market. The Company’s IPO will be under the NSE – SME category. The initial public offer of the Company is of Rs. 20.23 Crores. Check Day by Day IPO Subscription Details (Live Status)
| IPO Opening Date | February 10, 2022 |
| IPO Closing Date | February 15, 2022 |
| Issue Type | IPO of fixed price issue |
| Face Value | Rs. 10 per equity share |
| IPO Price | Rs. 73 per equity share |
| Market Lot | 1 lot corresponding to 1600 Shares |
| Minimum Order Quantity | 1600 Shares |
| Minimum Order Price | Rs. 116,800 |
| Maximum Order Quantity | 1600 Shares |
| Maximum Order Price | Rs. 116,800 |
| Listing At | NSE SME platform |
| Issue Size | 2,771,200 Equity Shares which sums up the issue size of Rs. 20.23 Crores |
| Fresh Issue | 2,771,200 Equity Shares which sums up the issue size of Rs. 20.23 Crores |
| Basis of Allotment Date | February 18, 2022 |
| Initiation of Refunds | February 21, 2022 |
| Credit of the Equity Shares to Demat Account | February 22, 2022 |
| IPO Listing Date | February 23, 2022 |
THREATS AND WEAKNESSES:
- The company is bene exposed to the changes in doctor prescribed medication, along with the cost which can affect their business.
- The Company, its subsidiary, directors, and promoters are under trial with progressing legal procedures. Any negative decision might hurt their Company’s performance on both operational and financial terms.
- The Company needs to manage its inventory and forecast demand effectively.
- The Company has a database of its patients; they are vulnerable to cyber-attacks and information technology system failures.
- Any Representative bad conduct may cause harm to the business.
- The Company in the past has engaged in related party transactions, and it further stated that it might do so again.
- The effect of the COVID-19which has caused increased attention towards healthcare, saw a mark of being beneficial to the Company. Still, the financial parameters have been impacted by the pandemic in the long run.
- The Company needs to implement and carry out its CAPEX with proper planning and strategy. It is engaged in very high maintenance and highly capital-intensive business. The general requirements of the hospital are generally very high, and these include a regular change in the non-reusable products, technology, and advancements.
- The company is dependent on a third party to supply the medical care equipment.
- The whole healthcare sector is very fragmented and competitive. It has many organized players with a high market share and small unorganized players. It accounts for high competitiveness in the sector.
STRENGTHS AND GROWTH ASPECTS:
- Madhavbaug, through its constant efforts, has established itself as a reputed firm in Ayurved and associated healthcare. It initially started its operation as a medicine service, but it has become an Emerging Ayurved Brand due to its track record and excellent operational and financial parameters.
- Madhavbaug has shifted its primary focus in the expansion of the brand. It is looking forward to setting up a PAN India presence.
- The Company provides medical services for many ailments. Due to its diversified service, it has become a one-stop solution.
- Madhavbaug also stated in its DRHP that it would implement strategies for cost-rationalization. It will improve the operational and financial margins of the Company.
- The Company started in its DRHP that its primary focus is on increasing its brand value. It will carry out designated showcasing, advertisements, and publicizing campaigns. It will help to increase its market share along with a better reach.
- The Company will also benefit from the potential of the Indian Healthcare Sector. The healthcare sector is predicted to be valued at the stunning $372 billion by 2022, accounting for 3% of India’s GDP.
- Madhavbaug also has a strategy to increase their Operating Efficiency along with the enhancement of Supply Chain Management.
- Madhavbaug has a long-term association with the Test Laboratories, Medical experts, doctors, medical equipment providers. It will help them to make up more super-specialty hospitals.
- The Company plans to carry out a CAPEX plan for expansion and a sound base for the urology and nervous science department.
- The Company has a very strong and healthy financial profile.
FINANCIAL RATIOS OF THE COMPANY:
| PARAMETER | MARCH 2021 | MARCH 2020 | YoY % |
| Earnings Per Share (Rs) | 343.78 | -123.82 | 377.64 |
| CEPS (Rs) | 887.64 | 370.80 | 139.39 |
| DPS (Rs) | 0.00 | 0.00 | 0.00 |
| Book NAV/Share (Rs) | 2170.42 | 1826.64 | 18.82 |
| Tax Rate (%) | 3.90 | -24.63 | 115.84 |
| Core EBITDA Margin (%) | 9.23 | 3.86 | 138.78 |
| EBIT Margin (%) | 4.55 | 1.00 | 357.63 |
| Pre -Tax Margin (%) | 3.08 | -0.59 | 618.16 |
| PAT Margin (%) | 2.96 | -0.74 | 499.56 |
| Cash Profit Margin (%) | 7.64 | 2.22 | 244.51 |
| ROA (%) | 5.64 | -1.92 | 393.38 |
| ROE (%) | 17.20 | -6.56 | 362.40 |
| ROCE (%) | 19.07 | 4.73 | 302.84 |
| Asset Turnover(x) | 1.91 | 2.59 | -26.57 |
| Sales/Fixed Asset(x) | 2.11 | 3.45 | -38.84 |
| Working Capital/Sales(x) | -7.77 | -7.34 | -5.75 |
| Fixed Capital/Sales(x) | 0.47 | 0.29 | 63.50 |
| Receivable days | 17.93 | 14.92 | 20.15 |
| Inventory Days | 15.77 | 15.80 | -0.15 |
| Payable days | 155.40 | 124.32 | 25.00 |
| EV/Net Sales(x) | 0.00 | 0.07 | -95.45 |
| EV/Core EBITDA(x) | 0.03 | 1.67 | -98.05 |
| EV/EBIT(x) | 0.07 | 6.62 | -99.01 |
| EV/CE(x) | 0.01 | 0.17 | -96.43 |
| Net Sales Growth (%) | -30.51 | 20.38 | -249.76 |
| Core EBITDA Growth (%) | 62.32 | -6.15 | 1114.02 |
| EBIT Growth (%) | 217.99 | -52.52 | 515.03 |
| PAT Growth (%) | 377.64 | -212.36 | 277.83 |
| EPS Growth (%) | 377.64 | -212.36 | 277.83 |
| Total Debt/Equity(x) | 0.10 | 0.73 | -85.66 |
| Current Ratio(x) | 0.52 | 0.45 | 13.87 |
| Quick Ratio(x) | 0.40 | 0.30 | 34.06 |
| Interest Cover(x) | 3.09 | 0.63 | 393.04 |
| Particulars | For the year ending with the amount in the lakhs | ||
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Assets | 2,580.60 | 2,911.17 | 2,887.72 |
| Total income | 5,227.92 | 7,529.73 | 6,256.86 |
| Total Expenses | 4,765.31 | 7,258.30 | 5,952.82 |
| Profit After Tax | 154.70 | – 55.72 | 49.59 |
PROMOTERS OF THE COMPANY:
- Dr. Rohit Madhav Sane
| Pre-Issue Share Holding | 90.08% |
| Post Issue Share Holding | 66.34% |
CONTACT DETAILS:
Vaidya Sane Ayurved Laboratories Limited
(also known as Madhavbaug Healthcare Limited)
Fl. 5, 1047, Shriram Bhawan,
Shukrawar Peth, Pune – 411002,
Maharashtra, India
Phone: +91 7738070019
Email: cs@madhavbaug.com
Website: https://madhavbaug.org/
MADHAVBAUG IPO REGISTRAR:
Bigshare Services Pvt Ltd
Phone: +91-22-6263 8200
Email: ipo@bigshareonline.com
Website: http://www.bigshareonline.com
