I was doing a comparison of net fixed asset turnover for listed hospital chains and this is what I found
Apollo and NH have superior NFATs in excess of 1.5x whereas HCG lags behind along with Fortis at below 0.9x. Since HCG is specialized on cancer care, it may have lower AORs (occupancy rates) than multispecialty hospitals but I guess with increased specialization their ARPOB should be superior, thus driving NFAT up?
Can any experts (Tagging @Worldlywiseinvestors) comment on future NFAT outlook for a specialty hospital like HCG? Is it likely to remain at 1x or below levels or is there scope to expand? Any insights on asset turns of specialty hospitals versus multispecialty hospitals? Asset turns is a key lever towards improving ROCE as HCG ROCE is still quite low.
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