KMC Speciality
Hospitals (India) Ltd (524520) closes at ₹39.70 with a Fall
of - 1.40% on 28-May-2021
with formation of a Red
Candle on Daily Price Chart.
About the Company : KMC Specialty Hospitals India Limited (KMCL),
established in 1982, is a part of the Kauvery Group of Hospitals based at
Tiruchirappalli (Trichy). The company runs Kauvery Hospital, a 220 bed super
specialty hospital that offers services in neurology, obstetrics &
gynecology, pediatrics, cardiology, ENT, dental, joint replacement among
others. Further, during FY2018, the company also started lever transplantation
services in the hospital. Kauvery group of hospitals is one of the reputed
hospital chain with about 1200 beds across Tamil Nadu. KMC is a publicly listed
company with Bombay Stock Exchange
Sector Update : Positive
Strength : 1. Experienced management and establish presence
2.. Comfortable
financial risk profile
Weaknesses : 1. Moderate scale within the
industry, geographical concentration risk and intense competition ( KMC
operates only one hospital with 220 beds; the same are modest within the
industry dominated by large players like Apollo Hospitals, CARE Hospitals among
others. Further, KMC’s entire revenues are skewed from a single location
property. Any unforeseen eventuality will impact the entire business and
financial risk profile of the company. Though KMC has a brand ‘Kauvery’ in the
State of Tamil Nadu with a chain of hospitals with aggregate bed capacity of
about 1200, however KMC Hospital at Trichy remain under pressure and faces
competition from other leading hospitals in the vicinity as reflected in
volatile operating margins )
2. Project execution risk (The company
has proposed a new project to setup a Mother and Child Health Care hospital
which is under construction. However it was delayed due to Covid for a period
of 6 months due to lockdown and now it is expected to be completed by April
2023. The cost of the project is around Rs. 75 to 80 crores of which Rs.50 - 60
crores will be provided by the bank and the balance Rs. 25.00 crores will be
funded through internal accruals and promoters )
Financials : KMC Speciality Hospitals (India) Ltd
has posted Net Sales / Revenue of ₹103.00 Cr &
Net Profit of ₹13.00 Cr in
FY2021 .
Valuations : The Company is now
Trading at X 3.0 of its valuations ( FY2021
earnings considered here) with ~200 % premium ( While Apollo Hospitals Enterprise Ltd is
Trading X6.0 of its Valuations )
Margin of Safety (1Yr Bond Yield: Value>1 ) is now 0.50
which makes is attractive after a
~50% fall in market price. The Equity Value Per Share ( Enterprise Value Method ) is ₹39.70
Whats best in It :It has passed on the indicator Growth
Candidate ( If >1 ), which is now 1.1 and Future Stocks Price Upmove Start Index ( FSPUI ) Decline after Up
which is a good Indicators for a Multibagger.
If We
factor its earnings/valuations, its Price arrives at ₹54.20
with consideration FY2022 earnings (Historical 10Yrs Growth Rate basis ).
Disclaimer : We are / may going to take exposure shortly.
Join Us at Telegram # https://t.me/TheNiftyNext
Data
Source | NSE Website | Screener.In | Capital Line | Money Control |
The
author tracks economic, behavioural and corporate tends, hoping to gauge good
avenues of return based on Fundamental Valuations of Stocks, a follower of EPV
method. You can reach me/us at |
Twitter # NiftyNext1 | e-Mail :
Mail@NiftyNext.Com | Tel +91
8802230836 | Telegram # TheNiftyNext |
Manage your
investments the right way With
MProfit. Visit https://www.mprofit.in/
Use Our Referral Link
to Get 20% DISCOUNT @ https://www.mprofit.in/buy?referral=R1GD99J496AB1345D
