The problem with KMCH is that they have ‘potential’ to expand, but we are yet to see clear evidence that they can scale the hub-and-spoke model to a completely new city. From Apollo’s or NH’s history, we know that operating a Brownfield Hospital produces decent Cashflows and Returns, but wealth is built in expanding and operating Greenfield Projects sucessfully (Apollo’s especially a good comparison to make).
Personally, I am happy that they chose to build a Medical College instead of a Hospital in Chennai. And I’m not saying KMCH can’t build a sucessful Greenfield Hospital. I’m just saying that they haven’t shown any evidence of the same. I’ll be happy to see them setup smaller operations in other cities like Trichy or Madurai too, just to experience expanding on a new market.
And maybe that is going to happen in the future too. I just feel like that’s one of the things they’re yet to prove as of now.