Buy Jeena Sikho Lifecare Ltd for the Target Rs. 1,000 by Choice Institutional Equities
Key Conference Call Highlights
Operational Updates
* The company currently operates 49 NABH-accredited facilities, with three additional accreditations in the pipeline.
* Reported profitability was impacted by one-off expenses of INR 210 Mn. Excluding these items, EBITDA margin would have been around 45%.
* The one-time impact comprised employee-related provisions of INR 70 Mn, an ECL provision of around INR 50 Mn and Ind AS transition-related adjustments of INR 90 Mn. Of the total impact, around INR 190 Mn was non-recurring, while INR 20 Mn is expected to be recurring.
* Nine OTC products have been launched in the last three months.
* The company launched the Jeena Swadeshi Health Card, a loyaltycum-referral program designed to improve customer retention and reduce patient acquisition costs.
* Health insurance contribution increased from 4% to 26% of services revenue, with the management actively engaging private insurers to drive future growth.
* The company has strategically reduced its exposure to government business due to payment delays, receivable risks and regulatory uncertainties.
Expansion Pipeline
* The management plans to operationalise 561 currently nonoperational beds in the next 3–5 months.
* The company has an additional 445 beds under development.
* Over the longer term, management aims to scale the network to 7,000–10,000 beds in 3–5 years.
* New hospitals are planned across key markets including Lucknow, Ahmedabad, Patna, Kolkata and Mumbai.
* Two ultra-luxury wellness centers are being developed in Panchkula and Manali, which will be made operational by July 2026.
* The management is also developing new male and female wellness programs and plans to launch pregnancy-focussed products aimed at improving birth outcomes.
Outlook
* Revenue is targeted to reach approximately INR 30,000 Mn in the next 3–5 years.
* PAT is projected to grow 4–5x from current levels in the next 3–5 years.
* The long-term business mix is expected to evolve toward an equal contribution from services and products, with both segments generating comparable EBITDA margin.
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SEBI Registration no.: INZ 000160131
