# **ABH HEALTHCARE LIMITED (ABH)** # **Comprehensive IPO Equity Research & Fundamental Analysis Report** **Listing Exchange**: NSE SME | **Date of Report**: August 22, 2026 | 1\. Executive Summary & Investment Thesis Company Overview ABH Healthcare Limited (ABH), headquartered in Ferozepur, Punjab, owns and operates Anil Baghi Hospital, a 150-bed NABH-accredited multi-specialty tertiary care healthcare institution. Established originally in 1985 and acquired/modernized by US-trained physicians Dr. Kamal Baghi, Dr. Saurabh Baghi, and Dr. Vaishali Saini, the hospital serves as the premier tertiary healthcare hub across the Malwa/Ferozepur border region of Punjab, providing 25 medical and surgical super-specialties. **Core Investment Thesis** * **Dominant Regional Tertiary Care Moat in Underserved Catchment**: Operates the largest private multi-specialty hospital in Ferozepur with a 40-year brand lineage. Serves a captive population of over 2.5 million across Ferozepur, Fazilka, Faridkot, and border districts where tertiary healthcare access is otherwise limited. * **Multi-Year Financial Acceleration & Margin Expansion**: Total income expanded from ₹29.61 Cr in FY23 to ₹55.00+ Cr in FY26 (+23.0% CAGR). Operating EBITDA expanded to ₹14.72 Cr (28.03% margin), with Profit After Tax (PAT) growing from ₹0.71 Cr to ₹5.70 Cr (10.74% net margin). * **Robust Inpatient Payer Mix & Digital Infrastructure**: Over 70% of inpatient revenues are backed by institutional payers (empaneled with 30+ private TPAs, PMJAY Ayushman Bharat, ECHS, and state government health schemes). Holds dual NABH hospital accreditation and NABH Digital Health Standards certification. * **Primary Growth Capital Infusion**: 100% fresh issue raising ₹34.98 Crore to expand advanced diagnostic imaging (3T MRI, Cath Lab upgradation), expand surgical ICU suites, and retire working capital debt. **Valuation & Outlook** Priced at a post-issue FY26 P/E of 20.4x at the upper band of ₹102 per share (Market Cap: ₹116.58 Crore), offering an attractive entry multiple compared to listed regional and national hospital chains (Asarfi Hospital at \~28x P/E, Yatharth Hospital at \~40x, KMC Speciality at \~35x). Core Investment Risks Single-facility geographic concentration in Ferozepur, Punjab; dependency on key medical specialists and promoter-doctors; and regulatory tariff caps under government healthcare schemes. ## **2\. Issue Structure & Deal Parameters** | Parameter | Details / Metrics | | :---- | :---- | | **Issuer** | ABH Healthcare Limited (Anil Baghi Hospital) | | **Issue Structure** | 100% Fresh Book Built Issue (NSE SME Platform) | | **Total Issue Size** | ₹34.98 Crore (34,29,000 Equity Shares at ₹102) | | **Fresh Issue** | ₹34.98 Crore (100% Primary Growth Capital) | | **Offer for Sale (OFS)** | Nil (0 Shares) | | **Price Band** | ₹96.00 – ₹102.00 per equity share (Face Value: ₹10) | | **Lot Size** | 1,200 Equity Shares (Min Retail Application: ₹2,44,800) | | **Bidding Window** | August 24, 2026 – August 27, 2026 | | **Basis of Allotment** | August 28, 2026 | | **Tentative Listing Date** | September 01, 2026 on NSE SME | | **Post-Issue Market Cap** | ₹116.58 Crore (at upper price band) | | **Promoter Group** | Dr. Kamal Baghi, Dr. Saurabh Baghi, Dr. Vaishali Saini | | **Issue Allocation** | QIB: 50% | **Objects of the Fresh Issue (Net Proceeds: ₹34.98 Cr)** 1. **Capex for Hospital Infrastructure Upgradation**: ₹16.50 Crore (Advanced Cardiac Cath Lab, 3T MRI, modular critical care ICU beds). 2. **Prepayment / Repayment of Certain Outstanding Debt**: ₹8.50 Crore. 3. **Funding Long-Term Working Capital**: ₹6.00 Crore. 4. **General Corporate Purposes**: \~₹3.98 Crore. ## **3\. Clinical Architecture & Hospital Operational Moat** **Clinical Verticals & Specialties** * **Cardiac Sciences**: Interventional cardiology, coronary angioplasty, pacemaker implantations, and non-invasive cardiac care. * **Neurosciences**: Minimally invasive brain and spine surgery, stroke management, and neuro-critical care. * **Orthopaedics & Joint Replacement**: Total knee/hip arthroplasty, trauma surgery, and arthroscopy. * **Nephrology & Urology**: Advanced hemodialysis units, lithotripsy, and endoscopic urological surgeries. * **Specialized Care**: Gastroenterology, Mother & Child Care, Oncology, and 24/7 emergency trauma centre with modular OT suites and Neonatal Intensive Care Unit (NICU). **Operational Capacity** * **Clinical Workforce**: Medical team of 37 specialist/super-specialist doctors and 101 nurses. * **Inpatient Capacity**: 150 operational inpatient beds. * **Digital Infrastructure**: Fully computerized hospital information system (HIS), cloud-enabled electronic health records (EHR), and computerized physician order entry (CPOE). ## **4\. Financial Statement Analysis (3-Year Restated Financials)** *Values in ₹ Crore unless otherwise stated* | Financial Metric | FY23 (Audited) | FY24 (Audited) | FY25 (Audited) | FY26 (Restated) | 3-Yr CAGR | | :---- | :---- | :---- | :---- | :---- | :---- | | **Revenue from Operations** | ₹29.20 | ₹40.85 | ₹47.60 | ₹53.80 | \+22.6% | | **Total Income** | ₹29.61 | ₹41.39 | ₹48.50 | ₹55.20 | \+23.1% | | **Medical Consumables Cost** | ₹11.20 | ₹15.80 | ₹17.40 | ₹19.20 | \- | | **Employee Benefit Expenses** | ₹9.40 | ₹12.80 | ₹14.50 | ₹16.80 | \- | | **Operating EBITDA** | ₹4.05 | ₹6.89 | ₹13.20 | ₹14.72 | \+53.7% | | **EBITDA Margin (%)** | 13.87% | 16.65% | 27.22% | 28.03% | \+1,416 bps | | **Finance Costs** | ₹1.80 | ₹2.20 | ₹2.80 | ₹2.40 | \- | | **Profit After Tax (PAT)** | ₹0.71 | ₹1.66 | ₹4.20 | ₹5.70 | \+100.2% | | **PAT Margin (%)** | 2.40% | 4.01% | 8.66% | 10.74% | \- | | **Return on Net Worth (ROE)** | 15.30% | 26.35% | 36.21% | 33.01% | \- | | **ROCE (%)** | 12.40% | 18.50% | 26.40% | 28.10% | \- | | **Diluted EPS (₹)** | ₹0.62 | ₹1.45 | ₹3.67 | ₹4.98 | \- | ## **5\. Peer Benchmarking & Valuation Analysis** | Hospital Enterprise | Market Cap (₹ Cr) | FY26 Revenue (₹ Cr) | EBITDA Margin (%) | Post-Issue P/E (x) | ROE (%) | | :---- | :---- | :---- | :---- | :---- | :---- | | **ABH Healthcare Limited** | **₹116.58** | **₹53.80** | **28.03%** | **20.45x** | **33.01%** | | Asarfi Hospital Limited | ₹260.00 | ₹95.40 | 20.33% | 27.80x | 18.40% | | KMC Speciality Hospitals | ₹1,450.00 | ₹210.00 | 24.50% | 34.50x | 21.80% | | Yatharth Hospital | ₹3,600.00 | ₹680.00 | 26.80% | 39.80x | 16.50% | | Shalby Limited | ₹2,850.00 | ₹920.00 | 18.50% | 32.40x | 10.20% | **Valuation Synthesis** At the upper price band of ₹102, ABH Healthcare is valued at an equity market cap of ₹116.58 Crore and an Enterprise Value of \~₹130 Crore. The issue is priced at 20.45x post-issue FY26 P/E, representing a 25–45% discount compared to regional peer Asarfi Hospital and other listed small-cap operators. ABH commands superior return ratios (ROE of 33.01%), supported by low fixed real estate overheads in Tier-3 Punjab. ## **6\. Scenario Analysis & 12-Month Target Price Projections** * **Bull Case (Target Price: ₹145 – ₹155 | \+42% to \+52%)**: Commissioning of advanced 3T MRI and upgraded cardiac cath lab increases high-margin surgical ARPOB (Average Revenue Per Occupied Bed) by 25%+. Inpatient occupancy rises to 75%+; FY27 PAT reaches ₹8.5+ Cr. Market re-rates multiple toward 25–27x P/E. * **Base Case (Target Price: ₹120 – ₹128 | \+18% to \+25%)**: Revenue grows at 18–22% CAGR; EBITDA margin stabilizes near 27.0%. P/E trades in the 22–24x range on FY27 estimated EPS of \~₹5.8. * **Bear Case (Target Price: ₹82 – ₹88 | \-14% to \-20%)**: Attrition of key surgical specialists or delayed government scheme reimbursements stretch receivables. Valuation multiple de-rates to 15–16x. ## **7\. Key Investment Risks & CFA Compliance Disclosures** 1. **Single-Hospital Geographic Concentration**: Operates exclusively from a single facility in Ferozepur, Punjab. Any localized operational disruption directly impacts overall financials. 2. **Dependence on Clinical Staff**: Retention of specialized surgeons and cardiologists in Tier-3 border catchments is vital for surgical caseload volumes. 3. **Payer Risk**: A significant portion of revenue is derived from empanelled insurance TPAs and government schemes (PMJAY). Regulatory price caps or claim settlement delays could impact working capital. 4. **SME Platform Liquidity**: Minimum application ticket of 2,400 shares creates liquidity friction post-listing compared to Mainboard equities. **Disclosure**: This report has been prepared for research and investment evaluation following VPW standards. Valuation projections and scenario targets represent probabilistic financial models based on RHP disclosures and peer market multiples. Past financial performance does not guarantee future market returns.