Noida Medicare Centre Ltd

Stock Opportunities
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Following post made by Hitesh in Not-so-Hidden Gems shifted to this Forum.

Posted byHitesh Patelat Tuesday 19:46

This came to my notice from its chart pattern. After having posted its all time high of around 37.85 in oct 2010, the stock has retraced back and seems to be taking support around 27.50 levels which happens to be its earlier high. cmp 29.80.

Coming to fundamentals, the current market cap is around 37 crores and with debt of around 9 crores, the enterprise value comes to around 46 crores.

It has a superspeciality hospital in NOIDA with satellite centres in delhi for various facilities. The Noida facility boasts of 120 AC bedded facility with all the latest superspeciality facilities in neurology, gynaecology, renal field etc with eminent doctors associated with it.

A look at the last six quarters shows good growth potential.

mar 09 june 09 sep 09 dec 09 mar 10 june 10

sales 6.3 6.7 8.3 10.4 11.6 13.5

np 0.56 0.63 0.72 0.95 1.15 1.77

June quarter eps is around 1.22. Sep quarter results awaited.

Equity is 14.46 crores and face value is Rs 10 per share. BV is 22 per share and if they do eps of around 4.5 it would translate to ROE of around 18% for fy 11 assuming book value increases to 25.

Promoters have allotted themselves 25 lac shares at a price of 25.50 per share recently which instils confidence in the company.

Since the company is a 20 year old company, the valuation of the land on which hospital is built should have multiplied manifold which should give valuation comfort.

I WOULD LIKE THE VIEWS OF FELLOW INVESTORS ON THIS ONE.

Hitesh

1 Like
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A comparison with peers of similar size does not disappoint!

Quarterly Trends Annual Trends Bonus & Dividends
Select Peers To Compare

Noida Medicare Kovai Medical FORTIS MLR Regency Hosp
LTP 29.90 142.50 38.00 54.75
Change% -0.50 1.50 0.66 -6.73
52 W H/L 37.85 / 13.05 175.90 / 80.10 46.00 / 26.10 80.90 / 45.00
Results(in Cr.)View in (Million) Jun - 10 Jun - 10 Jun - 10 Jun - 10
Sales 13.51 36.91 18.82 11.48
PAT 1.77 0.81 0.63 0.48
Equity 14.46 10.94 18.61 9.36
Ratios
OPM% 26.69 15.94 11.53 16.47
NPM% 13.10 2.19 3.37 4.20
EPS 1.22 0.74 0.34 0.52
CEPS 2.05 2.09 0.75 1.37

1 Like
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Healthcare Services is an interesting growth space. However I could never get in, as I found these pricey.

Some questions that come to mind immediately:

1). This has the best margins, seems to be in the super-specialty league, why are others of similar sizes relatively pricey, while this is available 8x? Kovai (16x), Fortis MLR(19x), Regency (40x)

2). What is the primary cause of the excellent q-o-q growth for the last several quarters? Additional centres, new services, what? when did 120 beds come on??

Anyone has 2010 AR?

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Folks will be well advised to stay away!

Dr. Navin Choudhary accused in 1998 Kidney racket. Several references to him in the kidney scam. Many Delhi friends mention the reputation of the hospital is poor. Dr Chaudhary’s house is incidentally immediately next to Mohinder Singh of the Nithari killings fame…where the suspicion was always on organ trade…as many body parts were missing.

some examples

http://premendra.sulekha.com/blog/post/2007/01/more-serial-killers-in-noida-where-is-dr-chaudhary-.htm

http://www.snopes.com/horrors/robbery/kidney.asp

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**

Hi Donald

HIT on TED also likes this stock. I posted some offhand comments on NMC. Chk them pls…

Folks away! **

Link: http://premendra.sulekha.com/blog/post/2007/01/more-serial-killers-in-noida-where-is-dr-chaudhary-.htm http://premendra.sulekha.com/blog/post/2007/01/more-serial-killers-in-noida-where-is-dr-chaudhary-.htm Link: http://premendra.sulekha.com/blog/post/2007/01/more-serial-killers-in-noida-where-is-dr-chaudhary-.htm

Link: http://www.snopes.com/horrors/robbery/kidney.asp http://www.snopes.com/horrors/robbery/kidney.asp Link: http://www.snopes.com/horrors/robbery/kidney.asp

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**
**

Hi Bobby,

HIT is me – hitesh patel.

I have taken note of the warning and booked out of some part with very marginal gains.

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**

Hi Hitesh

Hi Donald

HIT

** pls…

**
**

Hi Bobby,

HIT **

** patel.I **

gains.

**

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just to keep track of the stock,

dec qtr results

sales up to 14 cr from 10 cr

net profit up to 2.02 cr vs 0.95 cr

9M sales at 42 cr vs 25 cr

9M net profit at 5.2 cr vs 2.3 cr

9M eps at 3.59 (not annualised)

the above figures are on expanded equity of 14.46 cr.

cmp Rs 24.