We should keep focus of on Revenue growth guidance and execution of the guidance. (30% revenue growth) as well as EBITDA Margin margin guidance of 25%.
And conversion of PAT into operating cash. according to me if this three thing are intact then rest CG will not matter in a longer run.
And we should keep more focus of what Tyagi family is doing as promoter.
Disclosure: Invested. Do your own due diligence.
Do you know if Deepak Kumar Tyagi is one of the member of Promoters, I have gone through RHP and Annual reports, there isnt any record that suggests he is a related party to promoters, nor did I find any share holding of him, can you confirm?
I am not invested but keeping it on radar.
Would like to share my personal experience at the hospital. I was admitted there for 4 days and had a surgery done. I would say that hospital is professionally run and they have some of the best docs in NCR on their panel. My experience is limited to their main Noida hospital and canât comment on other branches.
Hope your recovery is going smoothly! Thanks a lot for the insight.
Hi Mr. @shk,
How can you be sure that this was the reason for Deepak Kumar Tyagiâs resignation? If you have any leads or sources, please share them. Also, I havenât found any reports about pledged shares by Kapil Tyagi. If you have any sources on this, could you please provide them as well?
Furthermore, thereâs a doubt Iâd like to clarify: Ajay Kumar Tyagi is the co-founder of the company, and if he has no issues with the potential pledge of shares by Kapil Tyagi (if any, according to you), then why would Deepak Kumar Tyagi have a problem with it? If you have any relevant information or sources to support your claims, please share them. This would be extremely helpful, as such concerns could affect investment decisions, even if they turn out to be untrue.
Looking forward to your response.
I have used âmightâ in my response as deepak kumar was with the firm for a long time and use to even attend concalls and was a part of KMPs.
The resignation seem to be all of a sudden applicable on the very next day also there is no further notice of replacement and the next day comes a notice of pledging of shares for personal loans it does raise some questions!!
He pledged more than 8%. Oh nice thanks for sharing valuable information.I completely missed it.
Buying from Bandhan & ICICI prudential continues.
Was comparing the Gross margins of key hospital chains and observed that Yatharth & KIMS has one of the highest gross margins in the industry. Further, Yatharth in particular has more than 40% revenue from government and have one of the lowest ARPOB. Can someone help how they are managing high margins with low ARPOB? Or is it that Gross margin is not a right criteria to check for hospitals & hence should just compare them at EBITDA margins level?
While comparing the hospitals, we should check ARPOB (If they are in the north region, check their peers ARPOB), EBITDA and EVEBITDA.
Gross margins arenât a right direction to look at unless they are into their own pharma and other manufacturing.
I am taking the liberty to add the extracted text from your handwritten notes. This will be easier to read for the community members. I can delete the post if you have any objection.
The Winning Methodology in Hospitals:
a) Capital allocation in such geographies where the ARPOBs can rise much more than healthcare inflation.
b) Matured hospital usually canât drive your ARPOB (can only move in line with inflation).
c) Rising occupancy is must
d) It is better to have a hospital with less govt scheme associated patients because the WC gets hampered due to high receivable from govt. (e.g., Yatharth).
e) Focus on ailments which have high growth and high margin (e.g., oncology).
f) It is generally seen multi-speciality hospitals have higher occupancy as compared to single speciality hospital (e.g., Rainbow). However this can turn.
g) Tier 1 player canât offer the same services at same price in tier 2 city, whereas a tier 2 player can offer affordable services to tier 1 city and can also expect ARPOB to rise when shifting from tier 2 to tier 1.
h) Brand value and perception matter a lot!!!
i) Having an asset-light model can help reduce capex burden and eventually will help to have superior return profile
j) International patients give you high margin because usually hospitals charge a good markup to them. (Maybe 20%-25%)
k) To become a pan-India player from a regional or local player:
l) Usually when a regional player adds more beds in the same geography it can break-even faster (due to brand and operations being strong)
m) The best time to make an entry in hospitals is when majority of the capex is done and operating leverage starts to kick in
n) It is better to have a look on ROCE, which includes lease liability (Ind AS 116)
o) The unit economics changes a lot when you transform from local player to PAN India player (ROCE, asset turn can get lower in this transition)
p) Doctors play an important role to create brand/perception.
q) In the context of capex and break-even, itâs better when it comes to brownfield capex because a majority chunk of fixed cost (mostly land) is not in the picture. So via brownfield the expected ROX, ROCE can be very high.
Decent results. Due to lower taxation in last quarter last year, we should see PBT growth. Itâs 10% YoY & 20% QoQ that too after higher depreciation on capacity addition.
However, I am not able to understand how the depreciation in Q4FY25 has come down compared to last quarter. It was 17cr in last quarter but has come down to 13cr, what could be the reason?
no the numbers arent good!! dont just look at the topline growth, the main issue with the company is receivables and it has increased more this FY to 301cr and debtor days would be around 125days while they guided to close around 100 days this year!!
They guided for 110 receivable days
they first said 100 then later gave guidance of 110 but still 125days shows nearly no improvement since last FY
Increased to 302 cr from 227 cr last year..
employee expenses have increased by quite a bit
Only investment theme in this case is, ARPOB expansion, Occupancy increase, valuation expansion to crawl towards the avg valuation of the industry, new capacity coming on to revenue generation phase (800 bed new capacity will come in phase in next 3-4 quarters) is bonus.
However, their cash generation is a concern, but very slow progress, so undervaluation is justified, may be will change as the cash generation improve. Management knows their receivables is a big concern, they claim they are trying to improve, but they are relatively new and adding capacity fast, so they are fighting between cash flow and growth. Their growth for now is coming at a cost of dilution and borrowed money.
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he two recent acquisitions in Faridabad (400 beds) and Delhi (300 beds) are expected to start operations next month (June 2025)
The management is expecting these two hospitals to also reach an EBITDA break-even level within 12 to 15 months
