Thyrocare : A Debt free Asset Light Wellness Healthcare Brand Play


#21

My observation as a layman, SRL is generally hospital affiliated or housed there and usually expensive. I think they must be sharing revenue with hospitals. Lot of growth offlate is coming from preventive check-ups induced from additional tax deduction or new joiner check ups which are cost sensitive. The listed peers are also advertising aggressively but I am not sure it has an impact on diagnostics buying behaviour.

Disc:No holding in this sector


(rajiv goel) #22

Of all quest is the best but is not very aggressive and is also aggressive. As far as thyrocare is concerned I see a lot of patients with their reports but not happy with results. Srl is not very good and lal is reasonable.


#23

How do patients become unhappy with results? What is the main complaint against Thyro?


(rajiv goel) #24

It is not only patients but also doctors. I have personally experienced it many times. Patient never submitted urine for examination but still got the report. This makes you lose faith in rest of reports.
The fault is probably not of thyrocare but of franchise. After patient has left and franchise
realizes that urine has not been given, he doesn't call back the patient and instead provides urine sample from his side. This shakes the faith in the whole system.


#25

So this is fault of an individual franchisee or may be an isolated event. This is a mouthshut moment for an investor. IMO, this is not a way to judge a company or a brand.


(TusharSB) #26

For last 2 years i m using Thyrocare Aarogyan as preventive health solution and have no complains. It is a preferred vendor for the company also.


(harini.dedhia) #27

That seems very unlikely given that Thyrocare only does blood reports and nothing else. You may have gotten a Creatnine report which is an indicator on the health of your kidneys but that is still a blood test.

If they actually gave you a urine routine report or something I would be shocked because they are solely a bio-chemistry company dealing with only blood tests.


(stockcollector) #28

Cough cough.. well spotted, just rumours!


(rajiv goel) #29

Oh yes. I just checked and they don't offer urine examination. I had two such experiences 2 years back with 2 different patients and ever since I have not recommended thyrocare to any patients of mine. I really don't know at what level was the foul play


(ankitkabra) #30

SRL has lower number of labs compared to other players and most test are expensive compared to others.
The quality, aesthetic and professionalism seems much higher at SRL vs peers.


(Chemist) #31

Tapping the $ 6 billion Indian healthcare biz

http://www.rediff.com/business/interview/tapping-the--6-billion-indian-healthcare-biz/20160909.htm


(Chemist) #32

What makes Thyrocare a great business?
**Posted by Jatin Khemani | May 07, 2016 | Food for thought, Scuttlebutt |**

http://stalwartvalue.com/what-makes-thyrocare-a-great-business/


(Nitin) #33

The point that we are missing here is that main driver for growth is aarogyam...it is a wellness test and cost is primary driver. It is also growing due to health awareness and in future you can expect this to be retained by Thyrocare (just due to being low cost)..also these are routine tests (commodities) and customers are direct (rather than refered by doctor)

Technology is biggest disruption that can kill this industry, but we still have long runway of growth before home kits make the preventive checks labs redundant.

Disc: not invested due to valuation. Like buissness model.


(Kiran K) #34

FY17 Q2 Results:
http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/CB9CAB61_067C_402F_89F6_593C7E62F941_075719.pdf

Disclosure: Have tracking position


(Kumar Saurabh) #35

Three concerns : 1Business can grow at 20 percent plus for 4-5 years based on current number of organized competitors but looks like too attractive business without an entry barrier can be a receipe for disaster if purchased at super high valuations assuming growth will be intact
2. Pat growth lower than revenue , is it going to be a trend
3.some sense of ROCE on pet ct business , though still in early days
Disc : Holding since IPO


(Marathondreams) #36

Good interview. I watched this interview on ET Now and is impressed with thought clarity of Mr. Velumani about pricing, margins, investment into Radiology/imaging business etc.

At current valuation, it is quite an expensive stock. But looks like competition may put pressure on margins and may make stock attractive in next 1 year.

Disc - Not invested


(Peabody) #37

Can you please explain the high valuation bit


(kanvgarg123) #38

A question. I was going through the AR and I found that the trademark "WHATERS" and "NUECLEAR" is owned by Dr. A Velumani and not the company. The company is paying for the cost and its development then why do we as a minority share holder has to pay royalty to pay and not to own the brand ?
@amitayu

Kanv


(Krishnendu) #39

@amitayu FYI ..

http://www.indiainfoline.com/article/news-union-budget/union-budget-2017-pre-budget-expectations-preventive-health-check-ups-could-be-aided-with-increase-in-tax-exemption-117011900402_1.html


(Anandh) #40

@kanvgarg123 I checked the related party transactions Note 27 in the annual report http://www.thyrocare.com/AGM%20Notice%20&%20Annual%20Report.pdf and could not find any royalty payment. It appears the license agreement is royalty free.

That said,Your observation is right that the listed company should own the IPR on which it spends, but Indian promoters use this as a anti takeover and/or cash extraction tool. For instance, Wadia Group/Tata Group/Jindal groups charge using their name, and some others charge the listed company for using brands/trademarks. Not the best corporate governance practice but it happens.