Hello Vivek,
Results are good; however, QT results can’t be over-emphasised either way. As far as direction is considered it’s on the right track as per my pov.
I have business in the healthcare segment hence have an idea of the functionality of hospitals. As such I may not have invested any hospital stock other than Apollo. Reasons for not investing in hospitals stock are like capital intensive/high cash business and Doctors are good as a profession but poor business people. Most hospitals in India is run or highly influenced by Doctor. Apollo has CG concerns hence I have no hospital stock in my PF 6 months ago.
I invested in HCG a couple of qtr back. Just to indicate my avg purchase price (256) is still higher than CMP (241); hence take my inclination towards HCG with a pinch of salt.
Due to my business engagement, I have a chance to visit HCG Bangalore and surely have an idea of HCG Ahmedabad (being located in A’bad). If you see HCG B – it’s like lots of low rise buildings. They built a top bridge to go from one unit to other. Similar HCG science city, Ahmedabad has small 3-4 buildings; there was some commercial unit in between the main canter and lab.
Mean to say they failed to visualise demand and failed to build sustainable infra. Difficult to get Accreditation like JCI – Joint commission international etc. Dr Ajaykumar is good professionally but like most Dr he is a poor businessman. When PE took over they first stopped further capex and decided to concentrate current business matrix. Hence I decided to invest as I find valuation attractive. Current market cap of 3300 cr; I find it cheap if I get the whole business of 27-30 units across India. Another reason is that cancer growth is higher (Unfortunately) and concentration in oncology will help in the acquisition of good Dr & Technology.
On the soft side; in Q2 earning call, Aditya Khemka asked most of the questions. In Q3 call there seems good interest from institutional.
Disc: Invested as indicated in the post.