I have been tracking this for a few months now. I got interested in this due to Aditya Khemka sir.
It is a low-margin and high-volume game. That’s it.
I am an ENT surgeon practising in a tier 3 city. And I am sharing my perspective here.
In the case of Pathology, I always wonder how one can do such blood tests, etc, at such a low cost. They are targeting mainly government and municipal hospitals. But how can one maintain Quality with such high volumes?
It is the same with Radiology also. It’s again a number game. Krsnaa charges are nearly 1/3rd of market charges. If you are admitted to the government hospital ( where Krsnna is attached) for one day, the scan is free ( Govt. pays for it). How can you charge so little with such huge capital expenditure on machines? Again, it’s a volume game. So here, one of the significant ways of cost-cutting is reducing the payment per CT to the radiologists. But obviously, senior and experienced radiologists will not do it. The recently passed-out junior radiologists mainly do it.
I have been tracking this from 400 levels. Invested and again sold out with marginal gains.
The above points always confused me.
The other issue is the Promoter’s holding of just 27%. So, other major stakeholders have the upper hand. And they have invested for returns and not for any charity. So, they will push more and more for margin improvements. All this will again question the Quality.
So, to clear this confusion, I asked myself this Question. “Will I ever go to Krsnaa Centre for my own pathology/radiology tests?” And the answer was - HELL NO. ABSOLUTELY NOT.
Since then, I have been only tracking this stock.
The only thing that excites me is their (?) future use of artificial intelligence in radiology.
The use of AI will, of course, improve the Quality with even higher volumes. Again, implementing and maintaining AI may be capital-intensive.
So, I am just tracking this as of now.
All these are my thoughts.
I am not invested in this stock.
dr. vikas
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