PAT margins in the 20s would be a dream for most businesses. I believe that once the market size becomes bigger, their asset turns would be higher than it is now and that will ensure good RoCE even if OPM drops. I can visibly see preventive care tests sold under Arogyam going up in my circle. In an expanding market, there might actually be space for everyone but I think some of these funds have come in a bit early and going by the spray and pray approach of most of these, I am certain most will be packing their bags before the avg. Indian age goes over 35. No matter your spend, unlike in food logistics or e-commerce, you cannot make the avg age for onset of ailments to change. The market is simply not ready for so many players right now. I think it will allow for Thyrocare to tweak its processes and continue to remain the quality low-cost player that they have been. If there are near-term headwinds, it would be a good test to see how the company responds. I am still quite amazed by the way Jubilant Foodworks managed to make so many changes in such a short span of time to fend its turf from Faasos, Freshmenu and Box8s of the world.
Disc: Invested last month during the dip (6% of portfolio - Plan to increase/decrease 2-3% after I see how things turn out)