The 3 reports from 1 analysts offering long term price targets
for Narayana Hrudayalaya Ltd. have an average target of 405.00. The consensus estimate
represents a downside of -10.16%
from the last price of 450.80.
Blended model of affordable + high-quality services The company has a legacy model based on affordability over the years. Due to strict control over costs and capital, the company was making reasonable profit. However, as it looks to scale up in other regions, where the consideration for quality has more weight than affordability, the model is likely to be modified from 'affordable'' to a mix of affordable + quality at premium. Cases in point are the recent acquisition of Gurugram Hospital and buying out of partner in the Cayman Islands hospital internationally where...
Blended model of affordable + high-quality services The company has a legacy model based on affordability over the years. Due to strict control over costs and capital, the company was making reasonable profits. However, as it looks to scale up in other regions, where the consideration for quality has more weight than affordability, the model is likely to be modified from 'affordable'' to a mix of affordable + quality at premium. Cases in point are the recent acquisition of Gurugram Hospital and buying out of partner in the Cayman Islands hospital internationally...
Blended model of affordable + high-quality services The company has a legacy model based on affordability over the years. Due to strict control over costs and capital, the company was making reasonable profits. However, as it looks to scale up in other regions, where the consideration for quality has more weight than affordability, the model is likely to be modified from 'affordable'' to a mix of affordable + quality at premium. Cases in point are the recent acquisition of Gurugram Hospital and buying out of partner in the Cayman Islands hospital internationally where...
A persistent improvement in occupancy rate across all segments coupled with substantial seasonality impact propelled both revenue growth, margins in H1. The new hospitals (SRCC, Gurugram, Dharamshila) continue to see a reduction in losses as the ramp-up in these assets is slowly but surely improving. The management reiterated a significant moderation in capex. On the M&A; front, this should improve return ratios gradually. The improvement, sustainability of these vital prints hold key as the focus now shifts to improvement in operating leverage. This was clearly visible in H1...
Blended model of affordable + high-quality services The company has had a legacy model based on affordability over the years. Due to strict control over costs and capital, Narayana Hrudayalaya (NHL) was making reasonable profits. However, as it looks to scale up in other regions, where the consideration for quality has more weight than affordability, the model is likely to be modified from 'affordable'' to a mix of affordable + quality at premium. Cases in point are the recent acquisition of Gurugram Hospital and buying out of partner in the Cayman Islands hospital...
Blended model of affordable + high-quality services The company has a legacy model based on affordability over the years. Due to strict control over costs and capital, the company was making reasonable profit. However, as it looks to scale up in other regions, where the consideration for quality has more weight than affordability, the model is likely to be modified from 'affordable'' to a mix of affordable + quality at premium. Cases in point are the recent acquisition of Gurugram Hospital and buying out of partner in the Cayman Islands hospital internationally where...
Blended model of affordable + high-quality services The company has a legacy model based on affordability over the years. Due to strict control over costs and capital, NHL was making reasonable profits. However, as it looks to scale up in other regions, where the consideration for quality has more weight than affordability, the model is likely to be modified from 'affordable'' to a mix of affordable + quality at premium. Cases in point are the recent acquisition of Gurugram Hospital and buying out of partner in the Cayman Islands hospital internationally where...
Q3FY19 results were a mixed bag with revenues and EBITDA above I-direct estimates while net profit was lower than I-direct estimates due to higher depreciation and tax rate Revenues grew 32.2% YoY to | 732 crore (I-direct estimate: | 713 crore) mainly due to consolidation of Health City Cayman Islands (Cayman)and ramp up in new hospitals EBITDA margins improved 136 bps YoY to 10.6% (I-direct estimate: 10.1%) mainly due to lower other expenditure. EBITDA grew 51.5%...
ICICI Securities Ltd | Retail Equity Research Revenues grew 25.2% YoY to | 652.3 crore (I-direct estimate: | 609.4 crore) mainly due to consolidation of Health City Cayman Islands Ltd (Cayman) and incremental revenues from new hospitals EBITDA margins declined 240 bps YoY to 7.3% (I-direct estimate: 8.3%) mainly due to higher employee expenses. EBITDA de-grew 5.9% YoY to | 47.4 crore (I-direct estimate: | 50.4 crore) Net loss was at | 4.1 crore (I-direct estimate of net profit: | 5.8 crore)...
ICICI Securities Ltd | Retail Equity Research Revenues grew 34% YoY to | 647 crore (I-direct estimate: | 595 crore) mainly due to consolidation of Health City Cayman Islands (Cayman) and incremental revenues from new hospitals EBITDA margins declined 398 bps YoY to 8.1% (I-direct estimate: 12.0%) mainly due to an increase in doctor payouts, expenses related to new facilities, GST implementation besides losses related to stent and implants regulation. EBITDA de-grew 10.3% YoY to | 52...
Q3 revenue was up 22% YoY on strong volume growth, but EBITDA slipped 2% YoY on (1) EBITDA loss of ~Rs 70 mn at its recently-commissioned children's hospital in Mumbai and (2) investments on talent acquisition especially at its new hospitals.
Revenues grew 22% YoY to | 554 crore mainly due to an improvement in ARPOB and occupancy rates. However, revenues were below I-direct estimate of | 587 crore mainly due to lower-thanexpected ARPOB (80 lakh vs. I-direct estimate of 84.8 lakh) and lower...
Blended model of affordable + high-quality services Narayana Hrudayalaya (NHL) has a legacy model based on affordability over the years. Due to strict control over costs and capital, the company was making reasonable profits. However, as it looks to scale up in other regions, where the consideration for quality has more weight than affordability, the model is likely to be modified from 'affordable'' to a mix of affordable + quality at premium. Cases in point are the recent acquisition of Gurugram hospital and buying out of partner in the Cayman...
ICICI Securities Ltd | Retail Equity Research We met the management of Narayana Hrudayalaya (NHL) to understand its business model and future prospects. NHL was founded by cardiac surgeon Dr Devi Prasad Shetty in 2000. The company operates as a chain of multispecialty, tertiary and primary healthcare facilities. NHL has a strong legacy in cardiac and renal sciences. Cardiac sciences alone contributed 42% to FY17 sales. The company has a strong presence in Karnataka and Eastern India. NHL is also growing in western and central India. The...
While Narayana Hrudayalaya's (NH) Q2FY18 revenue was up 15% YoY, EBITDA slip (8% YoY decline) can largely be attributed to (1) EBITDA loss of ~Rs 80 mn at its recently-commissioned children's hospital in Mumbai and (2) Price control on cardiac stents which impacted profitability by ~Rs 70 mn.
Blip in Narayana Hrudayalayas (NH) Q1FY18 financials can largely to attributed to (1) Price control on cardiac stents (cardiac contributes 44% to revenue) which impacted profitability by ~Rs 100 mn and (2) EBITDA loss of ~Rs 70 mn at its recently-commissioned childrens hospital in Mumbai.
Narayana Hrudayalaya's (NH) growth momentum continued in FY17 with 30% YoY growth in EBITDA to Rs 2.3 bn (in line).We believe NH is entering a strong growth phase (~20% revenue CAGR over FY17-20), as it continues to pursue an asset light expansion coupled with higher capacity utilization.
Narayana Hrudayalaya (NHL) is one of the leading private healthcare service providers in India with a strong presence in Karnataka and the Eastern region with while it is growing its presence is other parts of India as well. The company has a relatively light asset model with it owning just 1,613 out of its 5,442 operational beds. It has a strong brand name and is known for its clinical excellence and being an affordable healthcare service provider. It currently has 23 hospitals. Potential improvement in profitability: Generally, hospital businesses have a long gestation period before they mature (in terms of occupancy rates) and it may operate at a loss for a period of time before achieving profitability. Currently, NHL is in an investment phase where the company has increased its bed count at a higher rate in comparison to its peer Apollo Hospitals (Apollo). As a result, its top-line has grown at a faster rate but its occupancy and profitability levels are not as high as that of Apollo. Going forward, with NHLs pace of expansion being slightly slower than in the past, we expect it to gradually increase its occupancy rates and enhance its profitability. Upcoming projects under light...
