Every video of yours is such a big treasure trove. The way you compress enormous amount of research and present in such a structured and concise manner is just awesome. To top it all, like an excellent teacher you always summarise the video at the end. And that just tells how dedicated you are to your craft. May your tribe grow and grow.
Wow, thank you so much for your kind appreciation! I'm happy these efforts are helping you (and many others) in improving their investing decisions. In researching & creating these last 60 long format videos, I'm now starting to see patterns when I read articles, watch videos, listen to podcasts .. on how something in one sector affects another & how small developments are tying in together. Thanks again for the kind words!
thanks for the well researched video. i hope you are preparing a play list or a structured course that will teach fundamentals as well as industry specific research to do so we can learn better
One of the best analysis I have ever seen encompassing revenue models, industry context and performance metrics. Really well presented and summarised in the end. This should not be free😂
One good thing unlike other youtuber you don't direct viewers to buy specific stock, rather you presented view and let viewers take decision , Good approach and keep up good work
Thank you very much & I'm glad you like my approach. Truth be told, I feel every person's opinion on stocks, mutual funds & investments is biased - me included. Ofcourse, one can't be blamed for this .. afterall, when one buys or sells a stock - then it's practically two people having a difference in opinion. In that context, having an investment toolbox with different instruments (models, strategies, responses, data etc.) can do a world of good than seeking other's opinions.
As always, you have made a complex analysis look simple and easy to remember. Key parameters and ratios to be looked. When we had our 1-1 discussion, you had mentioned it takes looong time to create a video. Can’t agree more now and Can’t imagine the effort that’s gone in from collecting the details, organising them and then presenting in such a simple way. Thank you so much Shankar !!
Glad it was helpful, Vikrant! In man-hours, this 23 minute video took me, videographer and editor about 60 hours to produce. On a side-note, a good friend was just running through the comments, he pointed at your comment and said "finally, there's a proper appreciation comment". Thank you very much for continually encouraging me
@@shankarnath Good TH-cam content is like a good book. Once shot it will continue to live for generations of investors. I am watching this video 3rd time and every time I am finding new info as there is so much knowledge condensed in it. Unlike flashy taglines videos being posted now a days, your videos are simple and full of to-the-point but very important points one should not miss (and that'w why I am watching 3rd time). BIG thanks to you !! 🙏
Great video, Shankar ji! Really huge respect for the quality research and in depth analysis ithat you share so selflessly. It's a boon for novice investors like me. Just don't have enough words to express my gratitude. All I can say, Thanks a ton! Satindar. 💐👍🏻🙏
So nice of you. Thank you very much, Satinder ji. I'm happy you found the video and its content useful and informative. Please use this as a base to improve your own understanding of different sectors and stocks. When I started research on this sector, I knew nothing about it. But over the week, I learnt enough to know which way I should be thinking and equally important, which other sectors a similar principle applies (for instance, the ARPOB in hospitals is similar to ADR in hotels).
Shankar ji.. as always, a great presentation. Clear and concise. I think you condensed almost all the factors in a 23 minute video which is something amazing. I would only suggest one more parameter : the model in which the Hospital is managed i.e; if the management generally does its own PPE or it rents them out and how it would impact the numbers. KIMS example had an indirect reference but would be great to have kept it somewhere in financial aspects. That being said, I think this is a great video for someone to start in-depth analysis of this sector. Thank you!
I kid you not, but few hours back I was trying to study about hospital stocks and decided to look at S and P 500 top 100 stocks. I was shocked to notice that there were several health-care and health insurance companies in the top 100, but not a single hospital business. I was not able to make sense of this information as I expected hospitals to make more money than health insurance companies, but when I heard your explanation everything made sense to me. Since you have provided so many good video articles, I would like to contribute an idea to you. Please have a look at top 100 stocks of S and P 500 and provide your analysis of what you believe would be the sectors that dominate the nifty 100 after 15-20 years from now. Thanks a ton. You are like an elder brother to me.
This is a great Analysis. I was just looking to do some research on this industry as i was trying to make some entries into Narayana Hrudayalaya and your video was a boon jn disguise just when i was in need of it. Again great work and summarization.
Thanks Shankar for this superb video.I really was thinking of learning about healthcare industry and you posted this masterpiece.please keep the great content coming.
Very detailed study with lot of facts and analysis to make cogent story for analysis of hospital sector. This sector appears to bright star of future, may be one of leader in coming bull run. Medanta to included in the study to make it more updated! One more point may be included is percentage market cap hospital sector have in emerging and developed countries. Wish you all the best for such great efforts and analysis.
Excellent analysis on the sector. Would like to seek clarification on the point where you mentioned that higher ARPOB was achieved through higher occupancy for many hospitals. My understanding is that ARPOB is calculated per occupied bed and hence occupancy shouldn't have any effect on it.
Thank you! Pls look at it this way. You and I own a hospital each. In my hospital, the occupancy is pretty low (say 20% of the beds are occupied) while at your hospital, there's 100% occupancy with patients ready to pay a premium to get themselves treated from your crack team of doctors. For every day, I charge the patient ₹5,000. As someone running a for-profit venture, will you charge the same ₹5,000 or opt for say, ₹8,000 per day knowing very well that it won't make any difference to your occupancy rate? If I was in your place, I would charge ₹8,000 -- which'll should prove the argument that a high occupancy allows for hospitals charging a higher ARPOB aswell.
One of the most comprehensive video I have seen on the health care industry. It covers all the important aspects for investing in healthcare industry. Thank you very much
Most welcome. It's because of the capital heavy requirements. Say a hospital market cap is 100 rupees and it has 900 rupees in debt, then what is the real cost of buying it? Answer - 1000 rupees so that's enterprise value (the numerator). Secondly, the hospital business have a long gestation period and already the EBITDA is being calculated at a blended margin which is lower than the mature hospital. Now if we don't use EBITDA (the denominator) and use something like the net profits then it's double whammy because in addition to lower EBITDA we have to contend with interest on debt and depreciation on the newly developed buildings. The point is - by using other metrics, the comparison might become pointless so that's why I prefer EBITDA
Just saw a data.. inspite of having low occupancy rainbow has given highest AVerage revenue per bed in FY22…once it becomes mature occupancy will increase and future growth expected.. its margin is also good… something extra ordinary this company is doing.. please find and share with us.. thanks for good content.
Curious to know -- why Yatharth Hospital gives you more reason to believe as compared to others? What I like -- a) rise in sales amount & EBITDA b) reduction in debt (thx to the IPO) c) increase in mix (oncology grew 2x, pulmonology, cardiology are all up) What I didn't -- a) unclear expansion plans (they've acquired a 165-bed hospital in Faridabad and are targeting 1 acquisition per year to reach 2800 beds which is currently 1605 beds); I couldn't see any greenfield project b) ARPOB inspite of being in NCR region is 28,500 rupees which is on the lower side c) The govt. business is 40% leading to lower pricing & delays in payment; even in the latest results the debtor days shot up to 124 due to delay in payment from govt. d) ALOS is going up (it should ideally come down) d) Occupancy in their NOIDA hospital is already 89%; no scope for improvement or more beds
@@shankarnath Thank You very much. I might have missed it. I will go through right away. Also, if you can analyze some of the beaten down sectors like textile, pharma, chemicals & some others, that would be a big help.
Thank you very much, Parag. I appreciate that! The sector videos aren't high on the view counts but I love making those as it helps investors get that slight edge which peeping into a standard screener will not give. For instance - the bifurcation of mature and newly established hospitals is an important one.
Great video Shankar ji...being a doctor learnt a lot from your video as investors point of view...I have a doubt..which is better to invest in stocks or to make hospital which will be listed in future in stock market...in which to concentrate more
Thank you Dr. Pradeep, glad you found it useful. I'm an outsider so I'm relaying views as I see it (and without research). In my view building a hospital is likely to give better dividends. I recently spoke to a couple of doctors - both who own small hospitals (not more than 30 beds). One of the doctors has it in a Tier-1/2 city (population of less than 30 lakh) in Maharashtra and after all expenses, he's able to earn a profit of over 15 lakhs a month. So that's 2 crores an year, no debt .. and if valued at 20 times profit, then that's a valuation of 40 crores.
Sir, make a video about how to analyse agricultural commodities companies like rice( KRBL) and all the government regulations regarding this sector like the one you made about analysing sugar companies
Thank you for this kind appreciation, Debasis ji. Yes, it took some time but I thoroughly enjoyed learning about how the hospital industry works. The actual research was a lot longer, I had to strip away many parts & still it came to 15 points :)
Wooww shankar ji, this was a ton of knowledge and that to from an reliable source. A small request to you sir, I’ve been reading business model of elecon engineering since a week but unable to understand like how the replacement cost pf heavy machinery will come, how will the company acquire new customers and what all the new customers demand in case they need to change the vendor. I’m a college student in 3rd year of engineering and have a keen interest in markets. If u could please make a video on the same sector which elecon deals in it could be much useful. Regards 😊❤
Quick question, I used screener and looked into Max and Apollo, something which caught by eye was that the tax percentage varied a lot for both across years. Do you have any idea about it?
Thank you Shankar Sir for this amazing video. Regarding EV/EBITDA, lower the rate better the valuation. So if Market cap or long term debt increases but EBITDA is same or decreases, then it becomes expensive it terms of valuations. Is this correct understanding? Also regarding regulatory risks, Is it fair to say that hospitals find out some way or other to workaround the regulatory risks if it's a multi-speciality one whereas the hospital with specialised care pose more exposure to regulatory threats? Thank you once again!
Most welcome. 1. Yes, lower is better and yes, if market cap plus debt goes higher & if the EBITDA stays where it is at - then it's not an ideal situation 2. I can't generalize on the response to a regulation that a hospital may or may not take. Most companies (across industries) find loopholes but it's the management/promoter's call to exploit that loophole or not. I know of a couple of promoters who decided not to do use a workaround as they are temporary fixes but preferred to do the right thing, which worked out brilliantly for the organization 3. Yes, I would have to agree that hospitals that specialize on specific treatments have more risk than ones that have a wider diverse spread of procedures, patients and geographies as we discussed in the video aswell. So even when a regulatory risk presents itself, the multi-speciality hospitals can adjust better to newer realities
As a series to this video can you cover healthcare Indusrty covering other industries like healthcare insurer, leading specialised clinics, Health devices Mnfg and path labs companies. Creating a basket of a portfolio.
Thanks for the suggestion. Can't do all of it e.g. health insurance has only 1 listed company (Star Health) presently, we need atleast 4 companies per sub-sector for it to make sense. I've consider the others and add it to my content queue
Very well articulate. Just whether u can major exps, profit margin and challenge can be face by any company in the near future points could be added in ur analysis, that will help more to the viewers.
Hello Shankar....nice informative video as usual .Which business do you think is a better bet to have for long term, Health insurance or health care?just wanted to know your perspective.
Apologies, I haven't analyses the health insurance sector so won't be right of me to comment. Having said this, healthcare is quite a big area of study - there's pharmaceuticals, hospitals, diagnostic centres/labs, biotech, equipment manufacturing and others. Is there a particular sub-sector you were referring to?
ALOS going down is actually good in oncology space. Meaning that the treatment is getting advanced and a patient can go home in very few days. It is good in case of HCG where they have deployed advanced hi tech machines for treatment and hence ALOS have come down. Also for HCG, they are purely into oncology where a patient has to stay in hospital only in case of a surgery..maximum patients come for chemotherapy which lasts for a few hours..hence in case of HCG ALOS is not the right metric to track.
I have one question, do any invrstor will invest 30 cr at a time in the hospital. Because when i approached one hospital our minimum budget for invest is rs. 30 Cr
Hai sir, Excellent analysis as usual ... Can u pls do an analysis on Kauvery hospital.... could it be future apollo or Max kind of hospital chain ??? Thanks in advance ☺️
Great informative video. Being a new investor i have a few questions hope you can clear for me Sir. Which of the above stocks will you suggest for long term. And how much percentage of the portfolio should we add. How much return you think these stocks can give in the long run from now.
Thank you. Glad you found the content informative & it can form the basis of any hospital stock you research. As you are a new investor, I'll suggest you to not take any advice on "which stock to buy" and "how much returns it will give 10 years from now" from any youtube channel or whatsapp or telegram or news channel. If you are new to my channel, then you'll realize that this is not a stock recommendation channel but more of an education channel. I knew nothing about the hospital industry until a week back when I first started researching it. Now I think I am within 5% of investors who know something about it.
@@shankarnath I got your point. I have seen your live speech. Love the way you interact with people. But I am looking for good stock buying advise, because most of the stocks look highly priced and hyped. And difficult to choose. Hope you can understand the dilemma.
No. Just divide the other hospital's median EV-EBITDA ratio by Apollo Hospital's median EV-EBITDA ratio. Then subtract the result by 1 and you have the discount %
Will you please advise me about availability of cg benefits by purchasing a flat from sale proceeds of shares and mf...thanks..any views or videos, etc
Oh, taxation is not my strong suit, request you to consult a tax advisor for the same. If I come across any videos/articles on the same, then I'll circle back later
Look at it this way. When an FMCG company says that it has increased revenue by 10% per annum, it's generally a mix of volume growth and price increase. In the case of sectors like hospitals, there is a capacity limitation i.e. one can't produce beds on the go. As hospitals get mature, they can't add more extensions/wings as they'll likely be maxed out. In that scenario, it's only price growth that'll help and it's difficult for them to hike hospital charges by 10-11% every year. A stability will come and the consensus is that the revenue per bed growth for mature hospitals will be around the 6% mark
I have spend 28 years in healthcare industry at senior leadership position and can say that your research is excellent. Keep up the great work.
Thank you very much Gaurav ji. I am happy you found my work informative and to the point.
Which is the best hospital to invest if you don't mind😊
@@templogical3095 Max Healthcare
Every video of yours is such a big treasure trove. The way you compress enormous amount of research and present in such a structured and concise manner is just awesome. To top it all, like an excellent teacher you always summarise the video at the end. And that just tells how dedicated you are to your craft. May your tribe grow and grow.
Wow, thank you so much for your kind appreciation! I'm happy these efforts are helping you (and many others) in improving their investing decisions. In researching & creating these last 60 long format videos, I'm now starting to see patterns when I read articles, watch videos, listen to podcasts .. on how something in one sector affects another & how small developments are tying in together. Thanks again for the kind words!
thanks for the well researched video. i hope you are preparing a play list or a structured course that will teach fundamentals as well as industry specific research to do so we can learn better
One of the best analysis I have ever seen encompassing revenue models, industry context and performance metrics. Really well presented and summarised in the end. This should not be free😂
Thank you! Glad you liked it
My brother is a doctor and I shared your video to him.
Thanks for giving valuable information.
It's my pleasure. Hope he liked it
I prefer Narayana hridayalay, Rainbow, Max health care and KIMS. Exited Aster DM health care and Fortis health care
One good thing unlike other youtuber you don't direct viewers to buy specific stock, rather you presented view and let viewers take decision , Good approach and keep up good work
Thank you very much & I'm glad you like my approach. Truth be told, I feel every person's opinion on stocks, mutual funds & investments is biased - me included. Ofcourse, one can't be blamed for this .. afterall, when one buys or sells a stock - then it's practically two people having a difference in opinion. In that context, having an investment toolbox with different instruments (models, strategies, responses, data etc.) can do a world of good than seeking other's opinions.
Hidden gem in hospital stock is narayan Hrudayla NH
Correct
Shankar is the most underrated content creator and educator. Looking forward to seeing you hit 10m mark Shankar ji
Thank you very much for the vote of confidence
As always, you have made a complex analysis look simple and easy to remember. Key parameters and ratios to be looked. When we had our 1-1 discussion, you had mentioned it takes looong time to create a video. Can’t agree more now and Can’t imagine the effort that’s gone in from collecting the details, organising them and then presenting in such a simple way. Thank you so much Shankar !!
Glad it was helpful, Vikrant! In man-hours, this 23 minute video took me, videographer and editor about 60 hours to produce. On a side-note, a good friend was just running through the comments, he pointed at your comment and said "finally, there's a proper appreciation comment". Thank you very much for continually encouraging me
@@shankarnath wow 60 hours 😳. I could never imagine.
Take a bow!!!!!!
@@shankarnath Good TH-cam content is like a good book. Once shot it will continue to live for generations of investors. I am watching this video 3rd time and every time I am finding new info as there is so much knowledge condensed in it. Unlike flashy taglines videos being posted now a days, your videos are simple and full of to-the-point but very important points one should not miss (and that'w why I am watching 3rd time). BIG thanks to you !! 🙏
What a great sector and business evaluation!
Thank you very much. Glad you like it!
Great video, Shankar ji! Really huge respect for the quality research and in depth analysis ithat you share so selflessly. It's a boon for novice investors like me. Just don't have enough words to express my gratitude. All I can say, Thanks a ton! Satindar. 💐👍🏻🙏
So nice of you. Thank you very much, Satinder ji. I'm happy you found the video and its content useful and informative. Please use this as a base to improve your own understanding of different sectors and stocks. When I started research on this sector, I knew nothing about it. But over the week, I learnt enough to know which way I should be thinking and equally important, which other sectors a similar principle applies (for instance, the ARPOB in hospitals is similar to ADR in hotels).
Sir.. Greate video. First time i am clear about what to watch/track in hospital sector . Very very informative video.
Glad you found it useful and informative!
Well explained video, Able to get much insights on Hospital sector. Thanks for sharing your valuable knowledge.
Most welcome. Glad you liked it!
Excellent research and beautifully presented! A useful video for finance professionals as well as general investors. Best wishes!
Glad it was helpful! It's one of my favourites, enjoyed putting this together
Shankar ji.. as always, a great presentation. Clear and concise. I think you condensed almost all the factors in a 23 minute video which is something amazing. I would only suggest one more parameter : the model in which the Hospital is managed i.e; if the management generally does its own PPE or it rents them out and how it would impact the numbers. KIMS example had an indirect reference but would be great to have kept it somewhere in financial aspects. That being said, I think this is a great video for someone to start in-depth analysis of this sector. Thank you!
Thank you very much for your kind appreciation and also for the suggestion
I kid you not, but few hours back I was trying to study about hospital stocks and decided to look at
S and P 500 top 100 stocks. I was shocked to notice that there were several health-care and health insurance companies in the top 100, but not a single hospital business. I was not able to make sense of this information as I expected hospitals to make more money than health insurance companies, but when I heard your explanation everything made sense to me.
Since you have provided so many good video articles, I would like to contribute an idea to you.
Please have a look at top 100 stocks of S and P 500 and provide your analysis of what you believe would be the sectors that dominate the nifty 100 after 15-20 years from now.
Thanks a ton. You are like an elder brother to me.
Thank you very much for your appreciation and for your suggestion!
This is a great Analysis. I was just looking to do some research on this industry as i was trying to make some entries into Narayana Hrudayalaya and your video was a boon jn disguise just when i was in need of it. Again great work and summarization.
Glad it was helpful! Thank you
This was such a knowledgeable video. Gained a lot of information from this. Thank you 😊
Most welcome. Glad it was helpful!
Power packed video with intense knowledgeable insights ..thanks alot shankar sir
So nice of you. Most welcome! 🙌
As usual another excellent video... explained n details.
Wish you many more similar videos.
Thank you
Thanks sir for accepting my requesting for hospital indutry analysis 🤩🤩
Most welcome 🙌
Thanks Shankar for this superb video.I really was thinking of learning about healthcare industry and you posted this masterpiece.please keep the great content coming.
Thank you very much. I'm glad you found it useful and informative
You suggestions and guidance of pharm industry mind blowing 🙏👍💐🙏🎉👍🌹💓
Thank you very much. Glad you found it useful.
Very detailed study with lot of facts and analysis to make cogent story for analysis of hospital sector. This sector appears to bright star of future, may be one of leader in coming bull run.
Medanta to included in the study to make it more updated!
One more point may be included is percentage market cap hospital sector have in emerging and developed countries.
Wish you all the best for such great efforts and analysis.
Thank you for your suggestion and appreciation
very systematic and professional
thanks
You're most welcome!
It was such a good and detailed session. I was certainly looking for this one. But you did not consider Medanta. They too are good runners.
The focus was on chains with a sizeable count of hospitals. Medanta operates just 5 hospitals and didn't make my cut. Thx for the appreciation
Also Aster Dm has more international revenue than domestic
Thanks for Sharing this video sir. Had a great deal ok knowledge from your video.
A big thank you again.😊😊😊
Most welcome Sumit ji
Great Content! As a Medical Professional, I really found it useful to plan strategy!
I am really happy to hear that. Thank you very much for the visit and for liking the video
Excellent analysis on the sector. Would like to seek clarification on the point where you mentioned that higher ARPOB was achieved through higher occupancy for many hospitals. My understanding is that ARPOB is calculated per occupied bed and hence occupancy shouldn't have any effect on it.
Thank you! Pls look at it this way. You and I own a hospital each. In my hospital, the occupancy is pretty low (say 20% of the beds are occupied) while at your hospital, there's 100% occupancy with patients ready to pay a premium to get themselves treated from your crack team of doctors. For every day, I charge the patient ₹5,000. As someone running a for-profit venture, will you charge the same ₹5,000 or opt for say, ₹8,000 per day knowing very well that it won't make any difference to your occupancy rate? If I was in your place, I would charge ₹8,000 -- which'll should prove the argument that a high occupancy allows for hospitals charging a higher ARPOB aswell.
Great work here! Thank you.
Glad you like it!
One of the most comprehensive video I have seen on the health care industry. It covers all the important aspects for investing in healthcare industry. Thank you very much
Most welcome. I'm glad you found it useful. It is one of my favourite videos
thank you sir ,wonderful deep dive of hospital industry and taken more notes, one doubt is why EV/EBITDA is a best metric for this industry
Most welcome. It's because of the capital heavy requirements. Say a hospital market cap is 100 rupees and it has 900 rupees in debt, then what is the real cost of buying it? Answer - 1000 rupees so that's enterprise value (the numerator). Secondly, the hospital business have a long gestation period and already the EBITDA is being calculated at a blended margin which is lower than the mature hospital. Now if we don't use EBITDA (the denominator) and use something like the net profits then it's double whammy because in addition to lower EBITDA we have to contend with interest on debt and depreciation on the newly developed buildings. The point is - by using other metrics, the comparison might become pointless so that's why I prefer EBITDA
Got it sir ,also why we don't use DCF is because the industry relies on heavy capex right sir ?
@@arockiapraveen5200 Sure, please go ahead and apply DCF. Will be great if you can share your DCF model with me aswell, would love to understand it.
Very educative, thanks for the effort and result.
Most welcome. Glad it was helpful!
excellent video!
Thank you very much!
Thank you for this video, Shankar 😊. It was super informative.. very well put.
My pleasure 😊 Glad you found it useful!
Fantastic analysis
Glad you enjoyed it. Thank you
Excellent video 👏
Thank you very much!
Excellent ... High quality insights ....
Glad you enjoyed it. Thank you!
@@shankarnath It was well orginied and well reaserched
@@muhammedrashid7514 Thank you so much 🙌
Loved the video.
Glad you enjoyed it! 🙌
Already invested in the Sector.Your video brings more clarity on my holdings.Thank you!
Great to hear! Most welcome & I'm glad the video was helpful.
What r the best stocks in this sector sir
Hello Sir, this is very good analysis of the hospital industry. Thank You.
Most welcome. Glad you liked it 🙌
Well done sir..God job
Thank you!
Very good analysis Shankar Ji 🙂
Thank you very much 🙌
Sir aap ke pass bahut knowledge hai!! Agar aap hindi me bhi video kar sakte ho toh that can help many! Please consider.
Just saw a data.. inspite of having low occupancy rainbow has given highest AVerage revenue per bed in FY22…once it becomes mature occupancy will increase and future growth expected.. its margin is also good… something extra ordinary this company is doing.. please find and share with us.. thanks for good content.
Glad you liked it
Shankar u may want to check Yatharth hospitals, high potential multi bagger stock in making
Curious to know -- why Yatharth Hospital gives you more reason to believe as compared to others?
What I like --
a) rise in sales amount & EBITDA
b) reduction in debt (thx to the IPO)
c) increase in mix (oncology grew 2x, pulmonology, cardiology are all up)
What I didn't --
a) unclear expansion plans (they've acquired a 165-bed hospital in Faridabad and are targeting 1 acquisition per year to reach 2800 beds which is currently 1605 beds); I couldn't see any greenfield project
b) ARPOB inspite of being in NCR region is 28,500 rupees which is on the lower side
c) The govt. business is 40% leading to lower pricing & delays in payment; even in the latest results the debtor days shot up to 124 due to delay in payment from govt.
d) ALOS is going up (it should ideally come down)
d) Occupancy in their NOIDA hospital is already 89%; no scope for improvement or more beds
Xcellent information 🎉 thanks a lot
Glad it was helpful!
simply amazing.
Thank you very much!
This is soo amazing
Great work Shankar. I would request you to kindly do a video on evaluating banking / NBFC stocks. That would be great help.
Thanks for the suggestion. There is already a sector analysis video on Banks on my channel
@@shankarnath Thank You very much. I might have missed it. I will go through right away. Also, if you can analyze some of the beaten down sectors like textile, pharma, chemicals & some others, that would be a big help.
Thanks for consistent nice content 🙏.Always upto mark
Thank you very much, Parag. I appreciate that! The sector videos aren't high on the view counts but I love making those as it helps investors get that slight edge which peeping into a standard screener will not give. For instance - the bifurcation of mature and newly established hospitals is an important one.
Great video Shankar ji...being a doctor learnt a lot from your video as investors point of view...I have a doubt..which is better to invest in stocks or to make hospital which will be listed in future in stock market...in which to concentrate more
Thank you Dr. Pradeep, glad you found it useful.
I'm an outsider so I'm relaying views as I see it (and without research). In my view building a hospital is likely to give better dividends. I recently spoke to a couple of doctors - both who own small hospitals (not more than 30 beds). One of the doctors has it in a Tier-1/2 city (population of less than 30 lakh) in Maharashtra and after all expenses, he's able to earn a profit of over 15 lakhs a month. So that's 2 crores an year, no debt .. and if valued at 20 times profit, then that's a valuation of 40 crores.
very nice and detailed video...kudos!
Glad it was helpful! Thanks!
Thanks 👍 Looking Forward To Evaluation Of Tyre Sectors & Propects With Regulatory Challenges ❤
Thanks for the suggestion
Very good presentation
Thank you!
Please make fresh video on coffee can investing for small and mid cap in all time high market
Thanks for the suggestion
Sir, make a video about how to analyse agricultural commodities companies like rice( KRBL) and all the government regulations regarding this sector like the one you made about analysing sugar companies
Thank you for the suggestion, I'll add it to my content queue
Great insight... thanks
Glad it was helpful!
SUPERB PRESENTATION
Thanks a lot
Super analysis of health care stocks 👌🏻
Thanks! 🙌
@@shankarnath I am a medico and I can imagine how much of ur hard work would have gone into making this video with all that information 👍🏻👌🏻
Thank you for this kind appreciation, Debasis ji. Yes, it took some time but I thoroughly enjoyed learning about how the hospital industry works. The actual research was a lot longer, I had to strip away many parts & still it came to 15 points :)
Wooww shankar ji, this was a ton of knowledge and that to from an reliable source. A small request to you sir,
I’ve been reading business model of elecon engineering since a week but unable to understand like how the replacement cost pf heavy machinery will come, how will the company acquire new customers and what all the new customers demand in case they need to change the vendor.
I’m a college student in 3rd year of engineering and have a keen interest in markets. If u could please make a video on the same sector which elecon deals in it could be much useful.
Regards 😊❤
Thank you for the suggestion
Very nice and informative❤
Thank you very much!
Could you please let us know whoch is the best stock for next 5 years
Quick question, I used screener and looked into Max and Apollo, something which caught by eye was that the tax percentage varied a lot for both across years. Do you have any idea about it?
Sorry, no idea. I haven't analysed them individually yet
An excellent session Shankar.
Thank you very much
Great efforts Mr Shankar. Love from Chennai. You can add Global Health Hospital, Aster DM hospital on your chapter 2
Thanks for the suggestion & appreciation
Good work brother
Thanks!
Mind blowing 😮
Glad you found it informative
Thanks for the Useful information sir. Please do similar work on diagnostics also.
Thanks for the suggestion
கமல், விக்ரம் க்கு அடுத்து நீங்க தான் சார் அதிகமான கெட்டப் போட்டுருக்கீங்கன்னு நினைக்குறேன். 😅😂😂 thumbnail awesome
Glad you liked it!
Thank you Shankar Sir for this amazing video. Regarding EV/EBITDA, lower the rate better the valuation. So if Market cap or long term debt increases but EBITDA is same or decreases, then it becomes expensive it terms of valuations. Is this correct understanding? Also regarding regulatory risks, Is it fair to say that hospitals find out some way or other to workaround the regulatory risks if it's a multi-speciality one whereas the hospital with specialised care pose more exposure to regulatory threats? Thank you once again!
Most welcome.
1. Yes, lower is better and yes, if market cap plus debt goes higher & if the EBITDA stays where it is at - then it's not an ideal situation
2. I can't generalize on the response to a regulation that a hospital may or may not take. Most companies (across industries) find loopholes but it's the management/promoter's call to exploit that loophole or not. I know of a couple of promoters who decided not to do use a workaround as they are temporary fixes but preferred to do the right thing, which worked out brilliantly for the organization
3. Yes, I would have to agree that hospitals that specialize on specific treatments have more risk than ones that have a wider diverse spread of procedures, patients and geographies as we discussed in the video aswell. So even when a regulatory risk presents itself, the multi-speciality hospitals can adjust better to newer realities
@@shankarnath thank you sir! This is such a Big help!
Excellent thank you
You are very welcome
I have one silly question sir. Upgrades and expansion of facilities come under capex and not under working capital na?
Yes, it's capex and not working capital. WC is for day-to-day operations
Wonderful analysis
Thank you very much, Dr. Vishal
Please speak best investing idea as per you.
Please cover a video of diagnostic stocks
Thanks for the suggestion
What an amazing video :)
Thank you so much, Ali! Glad you found it useful
As a series to this video can you cover healthcare Indusrty covering other industries like healthcare insurer, leading specialised clinics, Health devices Mnfg and path labs companies. Creating a basket of a portfolio.
Thanks for the suggestion. Can't do all of it e.g. health insurance has only 1 listed company (Star Health) presently, we need atleast 4 companies per sub-sector for it to make sense. I've consider the others and add it to my content queue
Thank you very much 🙏🙏
You're most welcome. Glad you liked it
Very well articulate. Just whether u can major exps, profit margin and challenge can be face by any company in the near future points could be added in ur analysis, that will help more to the viewers.
Thanks for the suggestion
Great analysis sir. Kindly do same type of analysis on Shoe Companies. Metro Campus or Relaxo?
Thanks for the suggestion
Hello Shankar....nice informative video as usual .Which business do you think is a better bet to have for long term, Health insurance or health care?just wanted to know your perspective.
Apologies, I haven't analyses the health insurance sector so won't be right of me to comment. Having said this, healthcare is quite a big area of study - there's pharmaceuticals, hospitals, diagnostic centres/labs, biotech, equipment manufacturing and others. Is there a particular sub-sector you were referring to?
ALOS going down is actually good in oncology space. Meaning that the treatment is getting advanced and a patient can go home in very few days. It is good in case of HCG where they have deployed advanced hi tech machines for treatment and hence ALOS have come down. Also for HCG, they are purely into oncology where a patient has to stay in hospital only in case of a surgery..maximum patients come for chemotherapy which lasts for a few hours..hence in case of HCG ALOS is not the right metric to track.
Thx for sharing your views!
Excellent
Thanks
I have one question, do any invrstor will invest 30 cr at a time in the hospital. Because when i approached one hospital our minimum budget for invest is rs. 30 Cr
Hai sir,
Excellent analysis as usual ...
Can u pls do an analysis on Kauvery hospital.... could it be future apollo or Max kind of hospital chain ???
Thanks in advance ☺️
Thanks for the suggestion
Please make video on api and chemical sector....its good to add
Thanks for the suggestion
Great informative video. Being a new investor i have a few questions hope you can clear for me Sir. Which of the above stocks will you suggest for long term. And how much percentage of the portfolio should we add. How much return you think these stocks can give in the long run from now.
Thank you. Glad you found the content informative & it can form the basis of any hospital stock you research.
As you are a new investor, I'll suggest you to not take any advice on "which stock to buy" and "how much returns it will give 10 years from now" from any youtube channel or whatsapp or telegram or news channel. If you are new to my channel, then you'll realize that this is not a stock recommendation channel but more of an education channel. I knew nothing about the hospital industry until a week back when I first started researching it. Now I think I am within 5% of investors who know something about it.
@@shankarnath I got your point. I have seen your live speech. Love the way you interact with people. But I am looking for good stock buying advise, because most of the stocks look highly priced and hyped. And difficult to choose. Hope you can understand the dilemma.
@@sameerek76 Thanks for your kind appreciation. I'll certainly circle back if I decide to offer stock tips & recommendations in the future for a fee.
21:08 How did you calculate other hospitals discount from apollo? So should subtract evbyebitda ratio of other hospitals from Apollo?
No. Just divide the other hospital's median EV-EBITDA ratio by Apollo Hospital's median EV-EBITDA ratio. Then subtract the result by 1 and you have the discount %
👍 thanks very much.
Excellent
Thanks
Sir pls analyse Defense , dairy, AI, diagnostic , speciality chemical, drone, AMC sector
Thanks for the suggestion
Where to find this ratios 11:53 ? Not present in standard search tools like screener
I read investor presentations, annual reports and listened to earnings calls
@@shankarnath thank you sir
Very good video.
Thank you very much!
Shankar ji, requesting you to make a video on auto sector, since it seems opportunity now!!! #FOMO💯
Thanks for the suggestion
awesome.
Thanks!
Will you please advise me about availability of cg benefits by purchasing a flat from sale proceeds of shares and mf...thanks..any views or videos, etc
Oh, taxation is not my strong suit, request you to consult a tax advisor for the same. If I come across any videos/articles on the same, then I'll circle back later
@@shankarnath thanks...
What's the conclusion? Which stocks are good to buy??
Problem is you wont give a conclusion. Which one or two looks best now?
A small doubt. How can a low CAGR of 5-6% for ARPOB is more realistic than 10-11% for mature hospitals? can you pls clarify
Look at it this way. When an FMCG company says that it has increased revenue by 10% per annum, it's generally a mix of volume growth and price increase. In the case of sectors like hospitals, there is a capacity limitation i.e. one can't produce beds on the go. As hospitals get mature, they can't add more extensions/wings as they'll likely be maxed out. In that scenario, it's only price growth that'll help and it's difficult for them to hike hospital charges by 10-11% every year. A stability will come and the consensus is that the revenue per bed growth for mature hospitals will be around the 6% mark
@@shankarnath thanks a lot sir