I don’t like the unncessary diversification into academy and mfg business & international businesses (Consolidated ROCE is lower than standalone ROCE).
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Also while occupancy has gone up from 49% to 54% in Sept quarter, the EBITDA (and it includes other income too) % is still around 26%. Including Other Income, Yatharth’s EBITDA is already around 30% while there still remains significant headroom for higher utilisation of both the Noida hospitals (Greater Noida & Noida Extension).
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Higher revenue growth (absolute INR crs) despite much smaller base for Yatharth vs Shalby
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Shalby also has limited superspecialities vis-a-vis Yatharth. Pulmology (lung) is missing in Shalby vs Yatharth.
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Shalby doesn’t have a significant presence in Tier 1 cities, so I guess, the ARPOB to an extent would be capped?
Valuation wise, both are almost similar – Yatharth is 14.5x EV / EBITDA while Shalby is around 15x EV / EBITDA (3300 crs & 220 crs of EBITDA).
D – Invested in Yatharth. Biased.
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