Update on this
The GCC division to be sold to alpha GCC for EV of 13,540 Cr , Alpha GCC will have 35% ownership by promotors & rest by consortium of PE firms.
Concal scheduled at 11:30Am today : Webinar Registration - Zoom
Find more details in PPT
Update on this
The GCC division to be sold to alpha GCC for EV of 13,540 Cr , Alpha GCC will have 35% ownership by promotors & rest by consortium of PE firms.
Concal scheduled at 11:30Am today : Webinar Registration - Zoom
Find more details in PPT
Correct me if Iām wrong teamā¦.
All said and done if Aster GCC business gets sold - that basically means we lose our cash cow
Yes weād receive cash in exchange, but the cash would not justify the current valuations.
Aster would have deploy this cash and then build up the same level of operations it had back in GCC and the chances of that to happen is very unlikely.
GCC business was very much a monopoly because of few hospitals and very high insurance penetration. In India you have significant competition with low insurance penetration.
Hence this deal is really unfavourable to retail investors.
Let me know what you think? Am I missing something?
Hi Rishabh
An alternate view for your consideration
1. Valuation post demerger (analysis done on a pre-tax basis for simplicity - please do your own post tax assessment of cash payment)
2. GCC Cash cow and outloook for future investments
3. Competitive dynamics
Hope this helps in your thoughts
Disc: Invested with a full position and likely to be biased. Am not a SEBI registered advisor and none of the above is investment advice - please do your own due diligence
* From an industry perspective, you could look at other similar companies (my review was EV/EBITDA is of the magnitude of 18-40). So on a relative basis looks fairly valued to undervalued (depending on what multiple you use). Once detailed historical financials for India business are available, should be possible to understand DCF basis
Narayana Hrudayalaya Ltd
EVEBITDA 21.5
Operational Beds - 6096
Founded - 2000 - 24 year ago.
Compared to Aster India
EVEBITDA ā Valued more than NH post demerger
Operational Beds - 4080 (India - other than Kerala it is Asset light)
India operation started around 2014.
Key aspect is Aster yet to establish out side Kerala which enjoy its GCC brand recall.
My one cent is India business is unfavorable.
Interesting view Mr. Amrish - you are certainly more experienced than I am in the markets, and have clearly found a contrarian bet.
However, prima facie I would still stay away from Aster given my experiences when promoters sold the cash cow.
Dividend by Aster shall be in the range of Rs 110 to Rs 120/= per share
Shareholders approve separation of GCC business from India Business of ASTER.
Why did Aster DM fell by 20%, any reason?
Itās trading ex dividend
Any news on Q4 Results ?
There is news about morgan stanley buying Aster Stock and brokerages giving target of 418