To answer your first question, it depends. It depends on the type of patients a hospital is catering to. I case of Yatharth, they have a lot of govt. and scheme patients which is why if you see even after so high revenues and profits and margins, the cashflows are not impressive. This is because they have a lot of receivables from their scheme patients. As correctly pointed out by @Worldlywiseinvestors in a recent videos, earnings might be there but quality of earnings is more important.
On reserves, I guess distributing the cashflows at this stage might not be a good decision. They need to grow, invest in newer hospitals.
Disclosure.- Not invested…
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