I was trying to collate some play store data about where the incremental interest is going on for online players vs omni channel players. This data cannot be directly correlated with sales, but this can give some indication
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Acquisition oncology - partially completed hospital in kolkataa 300 odd beds
hi allā¦Is there any thread of Max Healthcare on Valuepickr? Pls guide me to it or if somebody has discussed in detail in some private thread?
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Today One of my portfolio holding, Max Health care was down by 7% . Above is the reason for it. If any of our group members are holding hospital stocks, what is the way going ahead? Will this standardisation rates be a reality ? And Supreme Court is talking of implementing it in 6 weeks, is it a great threat for hospital companies going ahead? How we should look at this?
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2nd order impact : āBhai max cover insurance buy krni ki zarurat kya hai ab firrā
More or less regulations are ok but capping things will lead to hospitals and medical setups figuring out workarounds.
Stunt cost and bypass surgeries are already capped to large extent thnx to modi. But Medanta mostly charges u an extra 1-2 lacs for invasive procedures (eg laser angioplasty) Till last year that was not covered with insurance and it does make sense to do if as a patient u are well to do.
Plus private capex is much needed in the hospital space so they might need to weigh that too vs just being populous.
Just playing the devils advocate.
Also, whats the potential impact on Narayana as they mostly do specilised treatments/surgeries? Current fall in NH share on the back of this development offers good margin of safety, given the company is consistently growing at 20% EPS and valuation (EV/EBITDA) appears reasonable vs peers.
Any thoughts?
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At the moment the valuations look way too stretched. With the bed additions still a year away; I am confused if we should even monitor the company and add at lower prices. What valuations will be justified. Any inputs will be valuable.
To me anything above 2x the PEG ratio seems totally unjustified even for large companies and even in bull markets. I am confused if I am missing something. It would be great to get some inputs.
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Large caps and that too hospitals should not come cheap in markets. Also, please remember the Apollo 24x7 stake sale that is being discussed widely - if that sees the end of the tunnel then monetisation will help balance sheet. Also pharmacies have been doing well. So optionalities are there and folks might be valuating at SOTP and just not standalone.
The return ratios of Max Healthcare are better than Apollo hospitalā¦How you value the current valuations of Max healthcare? And also going ahead, which business model is on superior growth trajectory???
It seems they have to merge their retail pharmacy business and Keimed - their distribution business to take funding from advent. Apollo issue is their CG - your pharmacy buys medicine from distributed company who is separate entity owned by one of your promoter.
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Off topic or maybe not - are there any regulatory barriers for Q comm players to enter into medicine delivery?
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Interestingā¦ They need license like netmed or 1mg, I donāt think there is any challanges. But TAM may not be very attractive and SKU may be too high.
In general online selling of medicine (pharmeasy like) is not that succesful vs general online selling (Like flipkart), the reason is proximity, medicine is availble nearby store and those are plenty.
Best selling items for Amazon / flipkart are: Clothings, Fashion items, Wall decoration etc. Whereas Q com sells most like condoms, banana etc. With that mindset, medicine will be Q comm target areas.
Interesting to think moreā¦
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I know acute medicines are high margin businessā¦ what better than Q-comm to supply meds? If its just a license, they could always get it. But I see no reason why meds shouldnāt be a logical expansion in next 2-3 years for Q Com players.
EDIT - just noticed that Q-Comm is also selling a lot of nutracueticalsā¦ zincovit, shelcal etc and painkiller meds - Crocin, Saridon, Disprin, etc. Iām not sure why they canāt also do limited asortment of popular meds. Take rates are far higher in this segment if I just go by gross margins of MedPlus etc (19/20%)
EDIT 2 - Just read the Blinkit acquisition letter by Zomato and they did mention OTC Pharma as a natural extension. So, I guess there would be some overlap there for sure.
Sorry but i think TAM has always been attractive + Zomato/Blinkit canāt deliver medicine.
Also, for some medicines u need prescriptions which is a hassle to carry everytime around when going to buy medicines physically. Even though online medicine is solving a smallish problem but still i think its a super attractive proposition for a ailing person living in a nuclear family who eventually has to be looked at by one person in the house at that time. So online medicine deliveries are somewhat a essential for some segments of the society.
Also, when it came to Apollo Pharmacy, they are actually doing a great job at creating physical touch points or locations near residential areas. So the business model is anyways a good one. Plus addition of distributors from time to time is also going to help in reaching economies of scale.
Also, given Apollo is a omnichannel play already vs others like 1mg etc so it makes a 100% sense for them to tap the online piece. Ppl can have other views which is invite sincerely.
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