Narayana Hrudayalaya (NHL) is one of the leading private healthcare service providers in India with a strong presence in Karnataka and the Eastern region with while it is growing its presence is other parts of India as well. At an upper price band of Rs 250, the stock is trading at P/E of 101.37 multiple on EPS of Rs 2.47 and at a lower price band of Rs 245 P/E multiple is 99.34. As the company is not making fresh issue of capital, networth of the company would have no impact and at an upper price band of Rs 250, Book value and P/B ratio is of Rs 38.22 and 6.54.

Broking firm, SMC Global has assigned 1/2 rank on scale of 5 to NHL IPO. "NHL has four healthcare projects underway at Vaishnodevi, Lucknow, Bhuwaneshwar and Mumbai and all these are expected to be on stream in next 12 to 24 months. These projects will add around 1000 beds on completion," said the broking firm.

"Most of the projects are on PPP model thus it reduces capex for the company. However, on the valuation front, the issue looks highly priced. Moreover, this issue is offer for sale and the money raised will not go to the company," it added.

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