Clinitech Laboratory Ltd IPO: Review, Valuation, Date & GMP

Clinitech Laboratory Limited IPO - Complete Overview

Clinitech Laboratory Limited IPO is an SME fixed price issue of Rs.5.78 crores by Clinitech Laboratory Limited that was established in 1990 and provides diagnostic and health testing services. The company conducts over 150 tests in its centers, which are grouped into six categories: biochemical tests, immunology tests, hematology tests, molecular biology tests, serology tests, microbiology tests, and histopathology exams.

Clinitech Laboratory operates eight testing centers throughout Thane and Navi Mumbai. Each year, the organization conducts over 3 lakh tests in its NABL (National Accreditation Board for Testing and Calibration Facilities) accredited facilities, which are outfitted with cutting-edge technology and high-quality equipment. The company's medical testing facilities at Airoli, Navi Mumbai, have been approved by NABL under ISO 15189:2012.

As of May 31, 2024, the company employed 85 staff in various departments. 

Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on July 25, 2024. Let's take a closer look at the IPO's offerings below.

Clinitech Laboratory Limited IPO Overview

Clinitech Laboratory's IPO of Rs.5.78 crore comprises a wholly Fresh Issue of 6.02 lac Shares (amounting to Rs.5.78 crores) out of which 50% is allocated to retail investors and 50% to others.

The IPO will be available to investors on July 25, 2024, and conclude on July 29, 2024. The anticipated listing date for the IPO is Thursday, August 1, 2024, and will be held on the BSE and SME. The price range of each Share is Rs.96.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

 

Company Financial

The company's revenue increased by 1.19%, while profit after tax (PAT) decreased by 39.46% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending March 31, 2024.

• The total revenue of the company is Rs.643.92 lac.

• The net worth of the company is Rs.354.80 lac.

• The company's EBITDA is Rs.101.66 lac.

• The total assets of the company are Rs.560.79 lac.
  
  

(Amount in lac)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	560.79	603.33	368.74
Total Revenue	643.92	636.34	645.70
PAT	37.12	61.31	51.26
Net Worth	354.80	238.08	184.81
Reserve & Surplus	186.80	88.08	34.81
Borrowing	86.31	102.91	88.61

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in lac)

Net Cash Flow In Multiple Activities	FY 2024	FY 2023	FY 2022
Net Cash Flow Operating Activities	11.25	124.72	95.60
Net Cash Flow Investing Activities	-63.99	-65.32	-146.56
Net Cash Flow Financing Activities	44.56	8.56	29.32

Test-wise Revenue Breakdown For The Last Three FYs

Customer-wise  Revenue Breakdown

The Objective Of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Expanding diagnostic centers.

• Corporate Purposes.

 

 

Peers of Clinitech Laboratory Limited

(Figures as of March 31, 2024)

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Dr Lalpath Labs	10	43.05	67.92
Thyrocare Technologies Ltd	10	13.42	47.56
Krsnaa Diagnostics Limited	5	17.90	38.42

 

Evaluation

The price of this IPO is Rs.96 for each Share.

Evaluation Of P/E Ratio

Considering the Fiscal 2024, with EPS of Rs.2.37 from the last year, the resulting P/E ratio is 40.50x.

Considering the weighted EPS of Rs.5.18 for the last three years, the P/E ratio is 18.53x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 57.74x.

Particulars	P/E Ratio
Highest	67.92
Lowest	38.42
Average	57.74

In simple words, the P/E ratio of Clinitech Laboratory Limited-IPO (40.50x and 18.53x), compared with the industry’s average P/E of 57.74x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths

• NABL Accreditation

• Diagnostic Centers.

• Skilled marketer and leadership team with extensive industry understanding and a proven track record

• Strong and long-term consumer ties.

 

IPO’s Weaknesses

• The company had negative cash flows in previous years. Future negative cash flows could negatively impact its business, operations, and prospects.

• Its operations are focused in Thane and Navi Mumbai, therefore any loss of business in these areas could negatively impact its business, earnings, and financial condition.

• Interest rate swings may negatively impact its operations, scheduled expenditures, and cash flows.

• The company relies on third-party providers for testing equipment and reagents, and any disruptions or recalls could harm its business, operations, and finances.

• Failure or failure of the machinery could compromise their ability to operate their activities.

 

IPO GMP Today

Clinitech Laboratory Limited IPO’s latest GMP has not started yet.

 

 

Clinitech Laboratory Limited IPO Timetable (Tentative)

The IPO is scheduled from July 25 to July 29, 2024, with allotment on July 30, refund initiation on July 31, and listing on August 1, 2024.

Events	Date
IPO Opening Date	July 25, 2024
IPO Closing Date	July 29, 2024
IPO Allotment Date	July 30, 2024
Refund Initiation	July 31, 2024
IPO Listing Date	August 1, 2024

 

Clinitech Laboratory Limited IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on July 25, close on 29 July, and offer a total issue size of 602,400 shares (aggregating up to Rs.5.78 Cr)  comprising a whole fresh issue size of 602,400 shares (aggregating up to Rs.5.78 Cr).

IPO Opening & Closing date	July 25, 2024 to July 29, 2024
Face Value	Rs.10 per Share
Issue Size	602,400 shares (aggregating up to Rs.5.78 Cr).
Offer For Sale	NA
Fresh Issue	602,400 shares (aggregating up to Rs.5.78 Cr).
Listing At	BSE, SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt Ltd

Clinitech Laboratory Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.115200 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.230400.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

Clinitech Laboratory Limited IPO Reservation

Retail Portion	50%
Other Portion	50%

 

Promoters And Management Of Clinitech Laboratory Limited IPO

• Jagdish Umakant Nayak

• Jyoti Jagdish Nayak

• Ashutosh Jagdish Nayak

Pre-Issue Promoter Shareholding	83.63%
Post-Issue Promoter Shareholding	61.56%

 

 

Clinitech Laboratory Limited IPO Lead Managers

• Inventure Merchant Banker Services Pvt Ltd
  
  

Dividend Policy

The company has no formal dividend policy.

 

Conclusion

The company has experienced negative cash flow in investing activities throughout the last few fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

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Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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