Name: Latest research reports of Shalby Ltd. authored by Monarch Networth Capital Limited and published by - Trendlyne research reports.
Item: Shalby Ltd.
Rating: 5
Author: Monarch Networth Capital Limited

Shalby Hospitals - Growth Ready

Buy: Shalby Ltd.

Monarch Networth Capital Limited

Shalby Ltd (Shalby') leader in Arthroplasty in India (market share of 15%), remains an under researched and under owned Investment Idea. Its best in class EBITDA margins even with lower occupancy and lower Capex/bed is a testimony of its cost and capital efficient operations. It remains almost net debt free even with the recent increase in its bed capacity by more than 55% and an implant facility acquisition. The newer hospitals (33% of operating beds) to lead EBITDA expansion on account of increased occupancies and asset maturity. Recent Implant facility acquisition provides massive synergies to Shalby with estimated annual savings of INR >11cr. Strong management bench-strength can help turnaround the International Implant business. We thus Initiate Coverage on Shalby with a BUY rating and a target price of INR 320, 29x P/E FY23 earnings, which is an upside of 65% on CMP....