Annual Report
I did mention they could take on debt like other hospitals? Right now they are net debt free and even on an absolute basis, the leverage is low. But since debt also exists, hence ROCE and not ROE. As a metric, ROE is more relevant for banks since they’re anyways highly levered & medium for raising capital becomes equity more often than debt.
Past isn’t always a good predictor for future in investing. Not sure how this is relevant on a going forward basis since much has changed operationally (higher ARPOB, case mix, etc.)
Sure, and borrowing debt is fine… they’re pretty much on a net debt free status right now… 5crs of gross debt against 100crs+ of cash. Also the Op leverage is already kicking in… they have pretty high EBITDA margins compared to some others and they only seem to be stabilising at ~30% on a steady state basis (excl. growing hospitals – Jhansi & Faridabad)
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