This is a welcome development. But the commentary seems all wrong. Yatharth does not have 35% CGHS, it has 35% from Ayushman Bharat I think. Unless those rates are revised, this will have a marginal impact. I will wait for some clarity.
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hi @chikspat - thanks for the detailed analysis - have gone through your posts on Yatharth - quite detailed, do you consider it attractive at given valuations - isnt 3x growth guidance in 3 years quite aggressive too?
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Hello Deep_Mehta1,
Management guided for 30% CAGR for revenue. Which we shall monitor.
For operating leverage, there are room of improvement due to complex procedures, radiation therapy, CGHS rate revision, Noida airport opening, which may bring more international patience.
Valuation still compared to peers are reasonable. Once company get scale, higher valuation, brand building can help to have higher valuation.
Disclosure: Invested.
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Yes on the operating leverage clearly there is room for improvement of ARPB which should improve with the facilities you mentioned, so this combined with top line execution should be something to clearly look out for. Got it.
On the valuation front also - checked peers like global health and they trade at 38x EV/EBITDA and Yatharth at 28x.
Thanks once again for taking out the time to respond with a detailed outlook@chikspat Dharmesh bhai.
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CRISIL has upgraded company’s rating from from A- stable to A stable which is 2nd upgrade in last 2 years, overall sentimentally positive..