I read little bit about aster as I knew it when I was in UAE for some time. My take on the company is it is known as common name running OPD clinics – I never found them to be in the hospital like Burjil or other GCC grown hospital. They wanted to utilize the brand value they created in UAE by running hospital chain in India. This is Claver move by the Aster as people age above 60 move back to home country after work and look for better service back in the home country for them and family.
Is company really undervalued?
I agree with your point that management thinks it is undervalued and looking to bring in privet investor to its GCC business.
My one cent on why Apollo stand better against Aster
- Apollo has history of longer time frame running large scale hospital chain. Aster India business is to young and small to compare.
- Apollo Stand better in following
- Revenue per in-Patient
- EBITDA % of Operating income (the only Hospital segment match EBITDA to Appollo)
- EBITDA/Bed
- Net Profit as % of Operating income
With story “NMC Hospital” still fresh I would take GCC number more carefully. Indian business they have grown in Kerala which they took full advantage of brand value from GCC and rest of the expansion will be time tested.
Aster as a Pan India player still long way to go to be compared to Apollo. My take is it is not undervalued.
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