Stance: Invested

There should be a movement in topline and bottom line in next 1-2 years. Their revenues are linked to how BEV and ICE automotive industry are performing. In the current high interest scenario across the world, people are skeptical to take loans to buy vehicles. But when the interest rate cuts start globally, the sales will start increasing sharply.

Of course, there might be some lags in the timeline. But generally, auto sector and infrastructure sectors are beneficiaries of rate cuts. This is my hypothesis on the stock.

Stance: Invested

The QiP should have tremendous growth potential for the company. Very few NBFCs are showing such numbers in Indian market.

Book value of 470 Cr. Post QiP, this book value should be 700 Cr (470+230). That means, company is trading at around 3.5 Price to book, post QiP.

With a RoA of 7.6% and RoE of 35%, company is fully utilizing the capital adequacy norms. Further 40-50% growth seems to be too good. However, am not sure how long they can sustain this level of growth in microfinance industry. Any views from others on this?

Inspite of delivering excellent output why this stock price not growing?

Whether commission is based on sale only or minimum commission is guaranteed!! Beacuse commission is high for Arvind compared to others…

Latest Credit Rating from CARE: Seems like they have reduced debt even further after SEP earning announcements.
202401150158_Kovai_Medical_Center_and_Hospital_Limited.pdf (181.5 KB)

Key highlights :

1. The total debt as on November 30, 2023, stood at ₹285.45 crore
2. KMCH is planning to undertake capex in the range of ₹250– 300 crore in the medium term funded through a combination of term debt and internal accruals against which sufficient accruals are expected to be maintained on the back of improving operational parameters. Hence, CARE Ratings anticipate that debt coverage matrix will not moderate and will remain comfortable in the medium term.
3. In recent years, KMCH has emerged as one of the most successful ‘Multi Organ Transplant Center’
   in the rest of Tamil Nadu, leading to an increasing number of referrals from Western Tamil Nadu and Kerala. It is recognized as a forerunner in transplant surgeries as well.
4. the Medical College, boasting a total of 750 seats, operates at full capacity, with
   an average annual fee of ₹14 lakh. CARE Ratings expects that the revenue contribution from the medical college will improve as
   the operations progress.
5. In H1FY24, the ARPOB of the main centre stood at ₹28,479 similarly, ARPOB for the other centres was between around ₹11,000 to ₹19,000, however, for the medical college hospital which added 238 beds in FY23 itself, stood at ₹3,388 which has impacted the overall average ARPOB level from the previous year.