Company Name- Lotus Eye Hospital & Institute Ltd
- Market cap- 145 Cr
- PE- 40
- Div Yield- 0.70%
- Debt to equity- 0
- PEG- 2.17
Background-
Lotus Eye Hospital is a hi-tech super specialty eye care hospital catering its value added service to the society since inception. Lotus is known for its excellence in Ophthalmic service with personalized care. This organization is committedly pioneering in the technological revolution in eye care and rendering service to thousands of patients from across the globe to see the world better than ever before. Company operates in only one segment i.e. Eye Care and Related Activities. The fiscal year 2021-22 which witnessed 8076 surgeries this fiscal year[22-23] company could perform 9703 surgeries.
- Founded in 1990 by renowned ophthalmic surgeon late Dr. S.K. Sundaramoorthy
- Lotus Eye Hospitals operates 8 Eye Carecentersin TamilNadu andKerala
âś“ 6 Centresin Tamil Nadu:Coimbatore (Peelamedu , RS puramand Saravanampatti), Salem, Tirupur and Mettupalayam
âś“ 2 Centresin Kerala: Kochi and Mulanthuruthy
âś“ Opened our new Centre in Saravanampatti in the month of July 2023
Risk
- There are large numbers of private practitioners in ophthalmology with their own
ophthalmic diagnosis and treatment equipment. There are a few with small hospitals with more advanced equipment’s. Apart from these there are large ophthalmic hospitals both philanthropic and run as commercial business entities.
Company has very big competitor in south - Tamilnadu state Dr Arvind Eye which has very vast experiance and technically Not for profit org. Dr V founded with another 4 doctors in 1979 and with only motive to serve the people of India and stop indian being unneccasry blind.
- Profitable and Proficient optimal use of Latest Technologies and Trends
Industries Outlook-
Global Industry Structure and Development:
The global “vision care market size” is expected to reach USD 192.85 billion by 2026, exhibiting a CAGR of 5.6% during the forecast period. Increasing awareness regarding ocular diseases in emerging nations is expected to aid the growth of the market. The increasing adoption of vision care products will boost the vision care market growth in the forthcoming year. In addition, the growing cases of cataracts will create growth opportunities for the market. For instance, according to the World Health Organization, 51% of the world’s blindness is caused by cataracts. In addition, the increasing risks of cataract incidence predominantly in developing countries will fuel demand for vision
care.
India reaching the number in terms of population surpassing china in the month of June, there are lots of untapped opportunities in all sectors including the health sector.
Eye care products like lenses might become cheaper. With increase in life expectancy it is likely that population will have more old people. This would make it necessary to carry out more cataract and other eye treatments.
The eye care demand would grow. The profession and business of organized eye care would have a large need and necessity.
Promoter and other institutional stake :
- Companies promoters kept on buying stock from 2017 till 2023. It is only last year they have sold 1.59% of the stake. From 53.12% in 2017 they increased their stake till 58.17% then sold 1.59% last year currently they are holding 56.58%
- A very prominent hospital institute in south with the name of Kovai has kept on buying this stock and currently holding 6.33% of the compnay with Kovai Purani Finance Private Limited name.
- Company promoter S rajkumar has released his 5 lakhs shares from pledge in Dec23.
Some Finance observation:-
- Company is debt free, Fixed assest expences is increasing. Every year company is expending 4 cr on fixed assest against 4 cr from cash from operation.
- 10 Cr cash on balance sheet, which is use for both divident payment and working capital.
- EPS jumped from 0.75 [2021] to 1.95[2023] TTM PE-1.70
- Company is giving positive return from last 8 years from 6 Rs in 2014 to 80 in 2022.
- Divident paying stock they have started dividend since last 3 years and have been paying 30% of NP as a dividend.