ET Intelligence group: Investors with an appetite for higher risk may subscribe to the initial public offering ( IPO ) of Shalby Hospitals , which runs a chain of hospitals in western and central India, because of its superior margins compared with the industry. In the last fiscal, hospitals in Gujarat accounted for 80 per cent of the revenues. The company’s hospitals turn break-even at an occupancy rate of 28 per cent, compared with the industry average of 40 per cent. The company relies heavily on two hospitals: in FY17, SG Shalby and Krishna Shalby contributed 77 per cent to the total revenues. The government has capped prices of several implants, and if it is extended to more services, the hospital’s margins may take a hit.

Source: Economic Times December 04, 2017 03:00 UTC