Here are the brokerage
Reviews of Thyrocare Technologies IPO. Do Consult your SEBI Registered Adviser before investing in any of the IPOs.
IndiaNivesh Analysts Daljeet Kohli and Tushar Manudhane have the following recommendation,
Adjusting for gross revenue for peer comon, valuation would be 5.0x FY16E EV/Sales, 4.0x FY17E EV/Sales and 3.2x FY18E EV/Sales. Considering the past deal of Metropolis in private space, which was ~4.2x trailing EV/sales and Dr. Lal Pathlab at current valuation of 8.5x FY17E EV/Sales and 7.0x FY18E EV/Sales, we believe that valuation are attractive. Thus, on the back of better growth prospects, enough cash for inorganic growth and attractive valuation, we recommend SUBSCRIBE on the issue.
Sharekhan Analysts have the following review,
At a price band of Rs420-446, the issue is priced at 47.7- 50.7x price-earnings (PE) ratio for FY2015 consolidated earnings per share (EPS) of Rs8.8 and 30-32x EV/EBIDTA for FY2015. The valuations at the offer price are similar to that offered in the public issue of recently listed comparable players like Dr Lal Pathlabs. After listing, the premium valuations of Dr Lal Pathlabs have expanded
further due to its strong track record, healthy return ratios and high free cash flows despite the aggressive expansion and exponential growth in the business.
Centrum Wealth Management has the following View,
At the higher price band of Rs 446, the stock is valued at 25.4x EV/EBITDA and 41.2x P/E on annualized 9MFY16 basis. While this may appear high, the company is expected to command premium valuation due to its strong brand image, proven track record, healthy financials and presence in niche high-growth business. Hence investors comfortable with such premium valuation, can subscribe to the issue. In the past we have seen tremendous market interest in similar IPO of Dr. Lal Pathlabs, with the issue getting 33.4x over-subscribed and is currently trading at much higher valuation of 69.4x FY16 P/E (though Dr. Lal Pathlabs is bigger in size in terms of revenue and market capitalization).
ICICI Direct Analysts Siddhant Khandekar, Mitesh Shah and Nandan Kamat have the following views,
At the IPO price band of | 420-446, the stock is available at 51-54x on FY15 EPS of Rs 8.3. The offer for sale is essentially to enhance the company's brand name and provide liquidity to existing shareholders. The company will not receive any proceeds from the offer.
Ajcon Global Analyst, Akash Jain has the following recommendation,
With due consideration to factors like a) portfolio of specialized tests with an emphasis on wellness and preventive healthcare, b) multi lab model - driving volume growth and economies of scale, c) pan-India collection network supported by logistics capabilities and information technology infrastructure, d) capital efficiencies in the diagnostic testing business, e) debt free Company, f) past strong financial performance, g) attractive ROE and ROCE in this kind of business model, h) offer price similar to its peer Company - Dr Lal Pathlabs IPO which expanded post listing; we recommend to “SUBSCRIBE” the issue.
Emkay Research has the following Recommendation,
Financial performance has largely been steady though there has been deterioration in key operational metrics in FY14 and FY15. More recent data (9M FY16) points to operational performance stabilizing on back of wider geographical expansion and broader basket of tests. Valuations while not cheap may not fully reflect recent recovery which should buoy depressed return ratios. We ascribe a SUBSCRIBE rating
Destimoney Research has the following View,
The asset-light model has enabled the company to operate at higher operating margin of ~40% as compared to ~25% in case Dr. Lal Path Labs (DLPL) which is bigger player listed on exchange. We believe the NHL investment to take more time to become profitable as the utlisation levels are low. At Rs.420-446 price band, the valuation is at discount to DLPL, however required growth earnings rate is still high. We recommend investors to SUBSCRIBE to IPO with holding view of at least three years.
Aditya Birla Money has the following recommendation,
Given a) strong management background, b) established brand and c) strong growth statistics, we value TTL at Rs 486 per share (i.e. ~30x its FY18E profits based on our estimated sales growth of 24% CAGR between FY16 – FY18, and normalized net profit margins of 25%) and recommend “Subscribe” on TTL IPO for both long term and near term investors as it is one of its kind companies in this space, with this kind of a business model.
GEPL Capital Research has the following views,
Thyrocare Technologies Ltd. (Thyrocare) is available at the IPO price band of Rs420 to Rs466 which is available at 40.7 P/E multiple. We believe that this valuation looks cheaper and have further potential to grow. So we recommend Subscribe to this IPO.
Motilal Oswal has the following Review
At a price band of INR 420-446, the issue is priced at 47.7- 50.7x price-earnings (PE) ratio for FY2015 consolidated earnings per share (EPS) of INR 8.8 and 30-32x EV/EBIDTA for FY2015. The valuations at the offer price are similar to that offered in the public issue of recently listed comparable players like Dr Lal Pathlabs.
IIFL analysts have the following Recommendation,
Thyrocare is one of the leading pan‐India diagnostics chain with focus on preventive and wellness health offerings. At the upper band, the stock is priced at ~27x FY18E earnings which is at discount to its close competitor Dr Lal PathLabs (~43x FY18E earnings). We believe premium valuations are justified given the strong growth prospects. Recommend investors to subscribe the IPO.
Angel Broking analysts Milan Desai and Sarabjit Kour Nangra have the following reviews,
According to the company, this business will take 3-4 years to attain peak profitability while it accounts for almost 40% of its fixed assets of the company (as on 9MFY2016). Thus, though Thyrocare could potentially provide listing gains, the pressure on its ROIC in the near term and the not-so cheap valuation demanded by it will keep the upside in the stock limited. We are Neutral on the issue.
Centrum Wealth Research Analysts Abdulkader Puranwala and Siddhartha Khemka have the following Views,
TTL had diversified in the molecular imaging space by acquiring Nueclear Healthcare Limited (NHL). NHL focuses on early and effective cancer monitoring. Over the years TTL’s revenue has increased at CAGR of 23% over FY11-15 and has consistent margins of over 40%, zero debt and cash and cash equivalents of Rs 62 crore as on Dec’15 and RoE’s of ~19% and RoIC of ~42% in FY15. We recommend a Subscribe.
