Ganesh Komma analyzes Park Medicare's IPO. The North India hospital chain has stagnant revenue around ₹1,200-1,400 crore, profit margins fell from 17% to 12%, and debt sits at ₹733 crore. The 85% fresh issue targets debt reduction, but slow growth and volatile profits limit upside.
Park Media IPO North India focused hospital chain with 3000 beds across 14 hospitals targeting tier 1 and tier 2 cities. The revenue growth is stagnant approximately around 1200 to 1400 crore range in the recent years. The profitability there is a significant drop in profit margins and they are like very volatile. Fell from 17 percentage to 12 percentage which is 1 of the major red flag and it carries high borrowings around 733 crores. A key IPO aim is reduction. The IPO structure 85% is a fresh issue. One of the biggest risk is the promoter holds 82% and must dilute later to meet SEBI rules creating stock overhang and the second risk is inability to grow revenue in a high growing sector and coming to the final verdict a moderate long term bet with operational risks. Debt reduction is a plus but stagnant growth and volatile profits limit the upside and this is not for the high listing gain seekers. Maybe post listing we can see how the stock moves and accordingly we can consider. So let me know below. What are your thought process? Have you applied for this IPO or are you going to apply or are you going to skip this ipo?
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