Is this disclosure fro your side ? If yes, would request insight regarding management quality: How they are in empowering people ? is 2nd & 3rd line of leadership team is empowered to take decisions or things are micro-managed by leadership team ?
Thanks
i am not an intern from KMCH i am from a near by collage a competitor to be honest about 10 km away
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I don’t see this as a risk, but rather a short term pain which most hospitals can adopt around (Especially Tier II / III city multi speciality hospitals who offer relatively cheaper services). That is, if it comes to pass at all.
Regulation is good. But regulation alone is not good enough. If GOI chooses to pass this rule, then it should also ensure that the entire Healthcare Delivery System is fine tuned to make healthcare more accessible. The easiest way I can think of and something which Dr. Nalla Palaniswamy has already spoken about, is building a strong network of cheap Medical Insurance. Of course, other infrastructure developments related to physically accessing hospitals is also equally important.
In my opinion, this is something KMCH can easily adopt around. If there’s any level of steep correction in the stock owing only to this “news”, I will be happy to add more at much lower levels.
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If the INDIA alliance comes to power, will the centre take a stronger stance on this? Just thinking aloud.
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a guy was beaten to death allegedly a theif
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Show cause notice issued to KMCH by Directorate of Industrial Safety and Health,Madurai.
Construction worker died at the Kovai Medical Center Outpatient Block (UG + 6 floors) because there was no safety net in place and the incident wasn’t reported to the Building and Other Construction Workers (BOCW) board within the necessary 4-hour.
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Company bought 1.28 acres in Chennai for an amount of Rs.121 crores.
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Is Kovai building a new hospital in Chennai ?
Size of land parcel is very small 1.28 acre only. To build a decent hospital in a Metro city at least 3-5 acres would be required. They had 3 acre land parcel in Chennai earlier as well, had plans to set up a hospital later on dropped that plan & did set up medical college instead.
let’s see how this unfolds
Disc. : Holding from low levels
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From Annual Report
Kovai Medical Center and Hospital have also excelled in providing exceptional postgraduate and post-doctoral education. Each year, approximately 200 postgraduate students are trained through national boards, achieving outstanding results with high pass rate. It is indeed a
matter of pride that our trained doctors have performed exceptionally well in various fields across the country.
Can doctors in this forum explain it. As I understand it is not related to medical college, also how it benefits the hospital? reputation, fee, free expertise, or they have certain regulation to follow (like internship act)?
It is 50000 sqft land, which can easily give them 2.5 lakh to 3.5 lakh sqft of constructed area with extra FAR.
Manipal has bought many smaller hospitals, with setups of no more than one acre. But, for larger hospitals, the new location may be acceptable because it serves as an extension of the main branch. However, can you please explain your rational on size.
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Based on this description it seems to be on Rajiv Gandhi Salai, IT Corridor, Mahabalipuram Trunk Road. Quite prominent location.
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With purchase value of 130cr and 55,808 sq ft area, per sq. ft rate is coming to 23,300. Any idea its at right valuations, as the article says that the property has been purchased through auction?
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LOOKS JUSTIFIED
20000 rs per sq ft for highway plot in metro is very reasonable.=110 cr
plus 30 cr construction cost assuming 50% construction ,7floors + basement.
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The built-up area is 2.2 lakh square feet, with a FAR of 4. So, the cost includes not just the built-up area but also the cost of any additional FAR they may have purchased. Easily worth 50 crores + land.
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Starting Operations here may take minimum 1.5 to 2 years, considering planning, permissions and refitment. But reflective of good cash flow, good deal scouting, prudent investment and expansion.
Disclosure: invested
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Saw a tweet saying that IT corridor already has Apollo & Kauvery. Does that mean that it will have higher ARPOB but occupancy could would be little low in initial years?
Funding wise, 300cr is cashflow of 10-11 months. If mgmt want to get little aggressive, I would not be surprised if mgmt announce one more capex by next year. Any views?
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If someone attended the 2024 AGM, appreciate if they share the notes of the Q&A round.
I joined like 15 mins late so have captured the summary post that.
AGM 2024 summary
Chennai expansion plan
- Multi speciality hospital with 300 beds with 300cr capex
- Timeline for completion would be 18-24 months
- Plan to go to chennai was to improve the brand image which would aid in further expansion
- When asked about competitive threats from the biggies in Chennai, Chairman responded saying if they provide good service at reasonable cost they will do good.
Other expansion plans
- Main center they have plans for children hospital
- Existing center max beds that they can possibly go is 2500
- With the Nursing college moved out of the campus, they are adding another 100 private rooms in the existing center( i think its ongoing)
- Future if there are any good opportunity that they see they might expand within Coimbatore or any other city.
Chairman was sounding confident and hopes to get to 2000cr topline soon
Disclosure - Holding from lower levels
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