{"id":1094,"date":"2019-11-10T20:29:00","date_gmt":"2019-11-10T20:29:00","guid":{"rendered":"http:\/\/oscillationss.blogspot.com\/?p=1094"},"modified":"2019-11-10T20:29:00","modified_gmt":"2019-11-10T20:29:00","slug":"narayana-hrudayalaya-ltd-and-max-ventures-result-update","status":"publish","type":"post","link":"https:\/\/oscillations.in\/?p=1094","title":{"rendered":"Narayana Hrudayalaya Ltd and Max ventures : Result Update"},"content":{"rendered":"
\n<\/p>\n
\nNarayana Hrudayalaya Ltd<\/span><\/u><\/b>-Narayana has given great set
\nof numbers\u2026even surpassing all the expectations:<\/div>\n
\n<\/div>\n\n\n\n\n\n\n\n\n
\n
\nFig in Cr.<\/b><\/div>\n<\/td>\n
\n
\n<\/div>\n<\/td>\n
\n
\n<\/div>\n<\/td>\n
\n
\n<\/div>\n<\/td>\n<\/tr>\n
\n
\nDescription<\/b><\/div>\n<\/td>\n
\n
\nSep-19<\/b><\/div>\n<\/td>\n
\n
\nSep-18<\/b><\/div>\n<\/td>\n
\n
\nGrowth %<\/b><\/div>\n<\/td>\n<\/tr>\n
\n
\nTurnover<\/div>\n<\/td>\n
\n
\n822<\/div>\n<\/td>\n
\n
\n713<\/div>\n<\/td>\n
\n
\n13.26%<\/b><\/div>\n<\/td>\n<\/tr>\n
\n
\nEBITDA<\/div>\n<\/td>\n
\n
\n128<\/div>\n<\/td>\n
\n
\n76<\/div>\n<\/td>\n
\n
\n68.42%<\/b><\/div>\n<\/td>\n<\/tr>\n
\n
\nEBITDA margin<\/div>\n<\/td>\n
\n
\n15.57%<\/div>\n<\/td>\n
\n
\n10.66%<\/div>\n<\/td>\n
\n
\n<\/div>\n<\/td>\n<\/tr>\n
\n
\nNP<\/div>\n<\/td>\n
\n
\n45<\/div>\n<\/td>\n
\n
\n13.5<\/div>\n<\/td>\n
\n
\n233.33%<\/b><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n<\/div>\n
\nAs we can see, against top line
\ngrowth of 13% the growth in NP is staggering 2.3 times so operating leverage is
\ngetting into action now and this will only increase from here on. NH still has
\n11% of its total bed capacity as new centers and these have negative EBITDA of
\naround 14 cr this quarter and as the same will get matured the performance will
\nbe even better. EBITDA margins are at 15.6% vs 10.6% last year. For its Cayman
\nisland hospital HCCI- the revenue growth is 26% from USD 12.7 million to USD 16
\nmillion (around Rs. 114 cr). At 24% its EBITDA margins are great and this shows
\nthe potential when NH will decide to expand HCCI capacity and will open more
\nsuch centers worldwide near developed countries. But that will happen once NH
\nis free from India and if you ask me that may take some more time as India in
\nitself is yet an under-developed market and scope of expansion is vast. NH has
\ninvested big in last 3-4 years and I think it\u2019ll take a little breather now and
\nthen the next round of investments will come. But in my view for global
\nexpansion they need a partner and it is not the best model where NH is putting
\nall the money as this will run into big money so very soon we\u2019ll see something
\nbig in this line also from NH\u2026may be some foreign governments will chose NH as
\ntheir partner for their country wide healthcare programme.<\/span><\/div>\n
\n<\/div>\n
\nI still find it hard to believe
\nwhy our government is slow in recognizing these new pillars of Indian economy.
\nWhy our economists still think that our consumption is slowing down and we need
\nto consume more for the growth? If you ask me then this should be the problem
\nof some developed country like America not a growing country like India. We
\nneed investments into other segments now. Autos and FMCG are at saturation
\npoint as per our current status of income and employment levels so we need to
\nincrease our income and employment penetration into real economy. Healthcare is
\nour expertise and we urgently need to build a business model around it to
\ncapture export business whether in the form of medical tourism or investments
\nin other countries like Africa. African nations regard India as blessings due
\nto extremely cheap medicines for deadly diseases like AIDS produced by Indian
\npharma companies like Cipla and Laurus labs (laurus Labs is another name which will
\nbecome big in the near future. I have invested big chunk of my portfolio in It.
\nThis is my second pharma investment after Biocon).<\/div>\n
\n<\/div>\n
\nRecently Narayana Health has been
\nrecognized as one of the world\u2019s most innovative health care providers by
\nFortune magazine\u2019s annual \u201cChange The World\u201d list of companies. It is at 33th
\nplace out of 52 and it is the only one out of 9 firms with less than a billion
\ndollars in annual revenue. It even toppled the global giants like Alibaba,
\nHilton, eBay, JPMorgan Chase, and Patagonia. Here, the scale of charity is not
\nthe factor to look after but along with the desire to do something good for the
\nhumanity\/society the firm should have a great sustainable business Idea and
\nthat is what set NH apart from the crowd.<\/div>\n
\n<\/div>\n
\nI am going to do some more buying
\nof NH in order to celebrate the success of NH. I do not think that we may be
\nable to see this one under 300 may be after tomorrow. <\/div>\n
\n<\/div>\n
\nMax Venture: <\/span><\/u><\/b>The results are just
\ngreat. But the most hearting thing is the announcement that they have bought a
\ndistressed real estate asset in Noida. I was expecting this and mention the same
\nin my previous post also. I had marked this step as a sign of their strategy that
\nthey are going to make the maximum of current state of affairs of real estate
\nsector.<\/div>\n
\n<\/div>\n
\nThey have entered into an
\nagreement to buy a land parcel at a prime location on Noida Expressway (Sector129)
\nfor Rs. 110 cr and development potential of this land is approx. 7 lakh sq ft.
\nJust like the Max Tower they will make a Grade A + leasable Commercial Office
\nspace. They have built the max tower on \u201cWorkwell\u201d philosophy where employee
\ncan also enjoy recreational activities along with office work. Better organizations
\nthese days are recognizing the need to offer their employees a stress free and
\nengaging work environment in order to make them perform at their full potential
\nand staying healthy. So recognizing the need of these companies, Max has built
\nthis tower and this shows their vision in judging the best opportunity. They
\nhave the skills to develop real estate because in Max Healthcare they have
\ndeveloped some of the best hospitals in India and this experience of developing
\ntop quality real estate will prove to be a big difference in strong execution
\nskills and they have proved the same by completing the max tower in record time
\nwith one of the best in design and quality.<\/div>\n
\n<\/div>\n
\nFor results, their topline is at
\n435 vs 268 cr last year and PBT (excluding other income) is at 13.23 cr vs loss
\nof 12 cr last year. With very high growth potential, Net worth at 870 cr, right
\nissue at a valuation of some 950 cr \u2026it is trading at a valuation of 576 cr.
\nGood worthy bet in commercial real estate.<\/div>\n

(Views are personal and should not be taken as a recommendation for buying or selling a stock. Stock markets are inherently risky so kindly do your Due Diligence before investing. I am not a certified Sebi Analyst and holding the shares discussed in this Post. <\/span><\/span>Reach me at oscillationss@yahoo.in<\/span>).<\/span><\/div>\n","protected":false},"excerpt":{"rendered":"

Narayana Hrudayalaya Ltd-Narayana has given great set of numbers\u2026even surpassing all the expectations: Fig in Cr. Description Sep-19 Sep-18 Growth % Turnover 822 713 13.26% EBITDA 128 76 68.42% EBITDA margin 15.57% 10.66% NP 45 13.5 233.33% As we can see, against top line growth of 13% the growth in NP is staggering 2.3 times so operating leverage is getting into action now and this will only increase from here on. NH still has 11% of its total bed capacity as new centers and these have negative EBITDA of around 14 cr this quarter and as the same will get…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1094","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/oscillations.in\/index.php?rest_route=\/wp\/v2\/posts\/1094","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/oscillations.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/oscillations.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/oscillations.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/oscillations.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1094"}],"version-history":[{"count":0,"href":"https:\/\/oscillations.in\/index.php?rest_route=\/wp\/v2\/posts\/1094\/revisions"}],"wp:attachment":[{"href":"https:\/\/oscillations.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/oscillations.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/oscillations.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}