A) Business Overview

The company in focus is Lakeshore Hospital and Research Centre Limited (LHRC), which is a part of VPS Healthcare. LHRC is a healthcare service provider that operates mainly through one hospital and has slightly diversified by starting a Medical Centre in Kozhikode. It offers a range of services including surgeries, transplants, dialysis, and preventive health check-ups among others. As of March 31, 2022, Lakeshore Hospital and Research Centre Limited (LHRC) employs a distinguished cadre of healthcare professionals. The staff includes 254 doctors, approximately 729 nurses, more than 450 individuals in medical support roles, and nearly 429 additional support staff. Among the doctors are several high-profile experts who have been affiliated with the hospital for over 15 years. The institution also boasts 129 specialist doctors serving as full-time consultants.

B) Key Strengths

1. Part of a Reputed Group: Being a part of VPS Healthcare gives LHRC a strong backing and credibility in the healthcare industry.

2. Strong Medical Team: LHRC has an extensive and experienced team of doctors, nursing staff, and medical support staff.

3. Solid Financial Performance: The Total Operating Income for FY23 witnessed a year-on-year growth of 17%, rising to ₹419 crores from ₹358 crores in FY22. Similarly, Profit After Tax (PAT) also escalated, moving from ₹42 crores in FY22 to ₹57 crores in FY23.

4. Diverse Specializations: The revenue streams are well-diversified across various medical specialties, mitigating risks associated with dependency on a single domain.

5. Healthy Capital Structure: The company has favorable debt protection metrics, and a low overall gearing ratio, suggesting a comfortable capital structure.

C) Key Weaknesses

1. Moderate Occupancy Rates: Despite an uptick in FY23, the occupancy rates have remained moderate due to competition from lower-cost service providers.

2. Dependence on Skilled Professionals: The company’s success is heavily contingent on retaining its scarce, highly-qualified medical professionals. Plus retaining nurses is also a challenge as they get good opportunity outside India.

3. Geographical Concentration: A large portion of the company's revenue is generated from a single location, making it susceptible to local market conditions.

4. Liquidity: Though marked as strong, the company has to manage its obligations carefully, given its strong accruals.

D) Management Quality

The management of LHRC appears to be highly experienced and competent, backed by a strong promoter group in VPS Healthcare. They have successfully managed to improve both financial and operational performance over the years.

E) Company Inception and Growth

LHRC has grown over the years to become a significant part of VPS Healthcare. While details about its inception are not available in the information provided, its alignment with VPS Healthcare suggests a well-structured and strategically planned growth trajectory.

F) Lakeshore Hospital and Research Center Performance Overview for FY22-23

Financial Metrics

1. Total Income: The company recorded a total income of ₹424 crores for this fiscal year, which is a 17% YoY increase compared to ₹362 crores in FY22.

2. Net Profit: The net profit surged impressively by 34%, growing from ₹43 crores in FY22 to ₹58 crores in FY23.

3. Earnings Per Share: An increase in EPS from ₹4.29 to ₹5.75 demonstrates a favorable return on investment.

4. Dividend: The Board has sanctioned a dividend of ₹1.70 per share (17%), to be disbursed following the Annual General Meeting's approval.

Operational Metrics

1. Patient Volumes: LHRC provided healthcare to 343,876 out-patients and 21,087 in-patients this year, a notable uptick in service delivery.

2. Foreign Patient Influx: The hospital has successfully expanded its global reach, with foreign patient numbers soaring from 6,008 to 20,047.

3. Revenue Diversification: The healthcare specializations contributing to revenue are diversified, including Nephrology, Medical Oncology, and Orthopedics, among others.

4. Organ Transplants: A significant milestone was achieved in conducting 53 liver and 212 renal transplants, with a staggering success rate above 95%.

Future Outlook

For FY23-24, the company projects a high single to mid-double-digit growth in revenue and a corresponding increase in profitability. Management has projected a turn over 473 crores and profit before tax of 117 crores for the financial year 2023-24.

Additional Insights

The Kozhikode Medical Centre, although in its nascent stage, has already catered to over 12,000 patients.

Risk and Compliance

The company adheres to government regulations, especially in sensitive areas like organ transplants.

G) UnlistedZone's Take

Based on the aforementioned data, the performance of Lakeshore Hospital and Research Center appears strong on both financial and operational fronts. The future outlook also remains bullish. This suggests a positive investment scenario for the upcoming fiscal year.

At present, the unlisted shares of Lakeshore Hospital are trading at ₹80 per share. With a total of 10 crore outstanding shares, this results in a Market Capitalization (Mcap) of ₹800 crores. The Price-to-Earnings (P/E) ratio, based on this pricing, stands at 13x, which appears to be reasonably valued.