ValuePickr Forum

Narayana Hrudayalaya Ltd IPO - Should we invest or let it pass?

(IcyHot) #24

Splendid analysis (not read anywhere else). Thanks for sharing. Last year I got a chance to hear Prof Bakshi talk at length about this wonderful company and he basically talked about the frugal nature of Dr Devi Shetty, sheer focus on profitabilty and his endeavour to run it like a commodity at scale. He also mentioned about the land he has got at reduced prices from various state governments like in Katra the land is literally free near Mata shrine. I was impressed so invested for the long run. I just read recently that ex CEO Raghuvanshi joined Fortis. And the share price also falling precipitously from 280 odd levels to 192… Hope everything is fine at NH. why did CEO join a rival company?

Disc:Invested.

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(IcyHot) #25

At the recent Investor meet at NDMC Center in C. P, Delhi had some discussions so that i could punch holes in my thesis above. Met a wonderful gentleman who mentioned about the USD 700m buyout plan of Medanta by Pai group. Medanta has overall about 1950 beds. So the per bed cost comes out to USD 358974 which is roughly INR 2.5Cr. What could be such value for NH? Mkt cap/ 6228?

(rajput.delhi) #26

Cost per bed…Wish it was so easy to find valuations :smile:

Its far more complex…its the entire ecosystem around the bed that matters more…number and quality and exp and reputation of docs, no of procedures, medicine cost, overheads, etc. etc…and area/city/country where hospital is…bed in wards or rooms…and a host of other things…there’s also a shift to day procedures where beds don’t get used…

So pls don’t fall for these easy looking metrics…they won’t help you unless u get the whole picture.

Rgds
RR

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(Jaimini) #27

https://www.bloomberg.com/news/features/2019-03-26/the-world-s-cheapest-hospital-has-to-get-even-cheaper

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(IcyHot) #28

@maijini10 This was absolutely insightful article about the Ayushman scheme and its impact on private hospitals… like NH… thanks for sharing. another great piece i read on Ken about hospital economics today, gestation period, PE culture, impact of asyushman… this is the most intriguing story for me so far this year…superbly written. Both the interviewer & interviewee seem to be corp hospital veterans…feel more educated now


free registration on site may be needed to read this

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(saumya) #29

http://www.careratings.com/upload/NewsFiles/Studies/Healthcare%20Services%20Industry.pdf

A great report by CARE on The dynamics of healthcare services industry in India
It covers Both Hospital Chains and diagnostic chains

1 Like