As others have already talked about NH, here are some insights i got during the latest concall:
They are expanding more in areas they already have a brand presence : Bengaluru and Kolkata. The reason is that they are capacity constraind here more than other regions. So short term ROI is expected to be higher rather than investing fresh in northern India.
Payor mix is very important. They could not get higher Qoq business from Jaipur because of some payor mix issues. It was not very clear on what exactly they are looking for.
Overall my perspective is that the company at least in India wants to be in the space of affordable care. Because of this reason markets probably won’t give them high multiples.
Caymen could be a different ball game where they might rebrand themselves more premium. That could mean re rating.
Overall what i love : prudent capital allocation and technology adoption, clean management and strong brand name in East and South India. My estimates for earning growth is 20 % pa over next 2-3 years
What I need visibility and being watchful : what is their strategy on North and West? Any insight will be helpful from others in this forum
Disc : invested
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