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nitin_jagtap
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Joined: 29/Dec/2007
Location: India
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Posts: 1283
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   Posted: 31/Jan/2008 at 7:13pm |
Reposting what I had written in a similar thread earlier
The oppurtunity for healthcare is manifold in India , with the advent of medical tourism this sector is bound to grow , typically healtcare in most developed countries is in the public domain and privae institutions have a minimal role to play , on this front India offers a different play , our public health system has nothing much to show and this creates a good oppurtunity for the private sector to take the oppurtunity in two hands but again the cost issues come up .
This sector is highly capital intensive , dependant a lot on technology ( as it keeps changing and new things keep coming up) and also depends a lot on the doctors in the hospitals which means to say this is a very people intensive and relationship based business ( a couple of bad doctors can make or break the hospital)
Also a another important thing that needs to be checked is the model that they are offering usually corporate hospitals operate in three ways
own and operate it
lease out the facility and operate it
franchise model
each of these has own disadvn and advn ...
Coming to wockhardt ...its been around in this business for a long time and Mr Khokariwala is one of the veterans in the pharma space and has done a decent job so far in the pharma space but that doesnt mean it will repeat itself here also.
Valuations needs to be checked and risk associated also needs to be factored in. I can speak cause I held Apollo Hosp for a long time it was 3x return when the sensex gave a 7x return.
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Warm REgards
Nitin Jagtap
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India_Bull
Senior Member
Joined: 19/Sep/2006
Location: United States
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Posts: 2296
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Posted: 31/Jan/2008 at 1:31am |
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Does DLF 12% deserve so much weightage? Market gave thumbs down to the results, but one positive thing from the mgmt talk is, 10yr sufficient landbank, generation of huge cash over a period of time without spending much money.
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India_Bull forever Bull !
www.kapilcomedynights.com
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xbox
Senior Member
Joined: 10/Sep/2006
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Posts: 2001
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Posted: 31/Jan/2008 at 4:20am |
I wrote about hospitals at listing of Fortis Healthcare. My views remains same....It is a glamorous sector but no wealth creator. High depreciation of assets & high capital intake negate all positives that we media reports at times......A sector with no takers......
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Don't bet on pig after all bull & bear in circle.
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tigershark
Senior Member
Joined: 13/Oct/2006
Location: India
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Posts: 3542
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Posted: 31/Jan/2008 at 7:00am |
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if a co is ready to lower its issue price just becos the mkt has fallen it says a lot about the mgmnt and their true intentions!
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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
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Posts: 6675
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Posted: 31/Jan/2008 at 7:05am |
Originally posted by nitin_jagtap
Reposting what I had written in a similar thread earlier
The oppurtunity for healthcare is manifold in India , with the advent of medical tourism this sector is bound to grow , typically healtcare in most developed countries is in the public domain and privae institutions have a minimal role to play , on this front India offers a different play , our public health system has nothing much to show and this creates a good oppurtunity for the private sector to take the oppurtunity in two hands but again the cost issues come up .
This sector is highly capital intensive , dependant a lot on technology ( as it keeps changing and new things keep coming up) and also depends a lot on the doctors in the hospitals which means to say this is a very people intensive and relationship based business ( a couple of bad doctors can make or break the hospital)
Also a another important thing that needs to be checked is the model that they are offering usually corporate hospitals operate in three ways
own and operate it
lease out the facility and operate it
franchise model
each of these has own disadvn and advn ...
Coming to wockhardt ...its been around in this business for a long time and Mr Khokariwala is one of the veterans in the pharma space and has done a decent job so far in the pharma space but that doesnt mean it will repeat itself here also.
Valuations needs to be checked and risk associated also needs to be factored in. I can speak cause I held Apollo Hosp for a long time it was 3x return when the sensex gave a 7x return. |
When I say healthcare, I just dont stop at hospitals. There are equipment manufacturers, sensor manufacturers and so on. Those who are into diagnostics are also a good business to be in. Opto is a case in point. Siemens Diagnostics is also a case in point. Advanced Micronic is another decent company. Hospitals are also a good business.......but value-wise they are not attractive. Apollo is good for getting those check-up discount coupons...hahaha!!!!!
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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
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Posts: 6675
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Posted: 31/Jan/2008 at 7:08am |
Originally posted by tigershark
if a co is ready to lower its issue price just becos the mkt has fallen it says a lot about the mgmnt and their true intentions! |
What about Mindtree, dear Tiger?????? Is ashok Soota bad or his intentions bad????
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smartcat
Senior Member
Joined: 29/Mar/2007
Location: India
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Posts: 4243
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Posted: 31/Jan/2008 at 10:36am |
| Does DLF 12% deserve so much weightage? |
As I mentioned sometime back, DLF is my proxy for actually owning land or an apartment. It is my real estate investment. I don't like running behind brokers, negotiate price with morons, check the land papers with lawyers, stand in queue in a Govt office for Khata, pay bribe to officials and all the other stuff that goes into buying real estate.
Coming to market reaction, I think eventually companies like DLF/Unitech will trade at commodity stock P/E of 10 - 15, after a few years. That's because the earnings growth will not be very smooth. Profit of Rs. 18,000 crores in one year, Rs. 15,000 crores in 2nd year, Rs. 24,000 crores in the next.. and so on.
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CHINKI
Senior Member
Joined: 07/Feb/2007
Location: India
Online Status: Offline
Posts: 2827
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Posted: 31/Jan/2008 at 11:00am |
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Smartcat, your reasoning for not buying a flat/land is not logical.
Do you think the car you drive get registered in your name at RTO without paying something??
When you get married, do you think you will get marriage certificate without paying something at the Registrar office??
When you have a child, you won't get birth certificate without paying something.
Worst of all, you have to pay something to get even death certificate.
This "SOMETHING"is there everywhere.
This is our system where each one of us are part of it and break it to our convenience.
No need to blame. Let's change if possible otherwise go on with that.
On the investment, the chances of DLF appreciating is 50:50. But the land or apt, it is 75:25. I am keeping that 25, in case if you end up making bad investment.
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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