Analysis- Nephrocare Health IPO

PROs:

• Indias largest dialysis provider

• Well qualified and experiened promoters

• works on asset light model

• cost efficiency

• Good revenue growth

• Strong cash flow

CONs:

• 30-32% revenue from government contracts

• dialysis pricing cap by government. No pricing power.

• Interest rate risk from its borrowings

• approx.60% revenue from south india states only.

• Less investor demand

• Negative market sentiment