- Leading Indian hospitals are entering a phase of consolidation after adding significant capacity in recent years. There could be meaningful operating leverage as occupancy rises, translating into better margins and return ratios
- Key investor concern has been low ROCEs. However, this is not true. Older hospitals clock high margins and RoCEs while growing at a reasonable pace. It is investment in new hospitals/beds that have dragged down reported metrics.
Key Beneficiaries: Apollo Hospitals, Narayana Hrudayalaya
Key Risk- Adverse regulation such as price caps and state schemes participation
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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