Medium Healthcare Consulting’s Post

BUY alert for Krystal Integrated Services Ltd. (𝐊𝐑𝐘𝐒𝐓𝐀𝐋) 𝐓𝐀𝐑𝐆𝐄𝐓: 1369 (80% ⏫) The company is well-positioned to benefit from the growing IFM market in India, particularly in the government sector. 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐓𝐡𝐞𝐬𝐢𝐬: • Leading integrated facilities management (IFM) services provider in India with a strong focus on government contracts (77.6% of revenue) • Comprehensive service portfolio across IFMS, staffing, security, and catering services • Well-positioned to capitalize on the growing outsourced IFM market, expected to reach INR 1,04,731 crore by FY28 (16.3% CAGR) • Robust client base with long-term relationships and expanding geographical presence • Strong financial performance with projected revenue CAGR of 27% and PAT CAGR of 40% over FY24-26E • EBITDA margin expansion expected from 6.7% in FY24 to 7.7% in FY26, driven by economies of scale and favorable service mix • Efficient working capital management with improving cash conversion cycle • Attractive valuation at 11.1x FY26E P/E, offering a discount compared to peers 𝐊𝐞𝐲 𝐑𝐢𝐬𝐤𝐬: • High revenue concentration with top 10 clients contributing 73% of total revenue • Significant dependence on government contracts (77.6% of revenue) secured through competitive bidding • Potential slowdown in key sectors like healthcare, education, and government spending • Intense competition in the fragmented IFM market • Execution risks associated with rapid expansion and diversification 𝐃𝐢𝐬𝐜𝐥𝐚𝐢𝐦𝐞𝐫: This is for informational purposes only and should not be considered as investment advice or a recommendation to buy, sell, or hold any securities. The information contained herein has been obtained from sources believed to be reliable, but its accuracy and completeness cannot be guaranteed. Investing in securities involves risks, including the potential loss of principal. Past performance is not indicative of future results. The target price mentioned is based on certain assumptions and may not be achieved. Actual results may differ materially from the projections and estimates contained herein. Source: Centrum research report #invest #stockmarket #india #finance #KRYSTAL 

Aster DM Healthcare’s separation into India and GCC businesses shall unlock shareholder value by creating two robust geographically focused entities that will undertake a targeted approach to maximise its growth potential.    In GCC, the investment by the Fajr Capital led consortium into Aster DM Healthcare, marks one of the biggest transactions in the healthcare space, at an enterprise value of $1.7 billion. Aligns with the region’s booming healthcare landscape which is expected to grow at 5.4% CAGR between CY22-CY27. (Source: Aspen Capital Report)     This strategic move grants us the agility and financial flexibility to align with evolving market demands and prioritize patient needs effectively. With dedicated management teams and investor bases for both entities, we are poised for accelerated growth in both markets, each holding immense potential for expansion.    Leading this Strategic Transaction over the last 18 months has been a career milestone. It’s been a demanding and enriching experience leading a complex multi-geography transaction which by far is one of the largest transaction in the healthcare space in GCC.    I am thankful to Aster DM Healthcare and Dr. Azad Moopen & Alisha Moopen for placing their implicit trust in me. I am immensely proud of the team which has been working alongside me, tirelessly, for more than a year, navigating some of the toughest situations, complex processes, negotiations and strong regimented routes to ensure that we deliver the best value to the investors, the promoters and all stakeholders involved.   https://lnkd.in/d6aswFFa   #asterdmhealthcare #futuregrowth #healthcareleadership #GCCHealthcare #HealthcareM&A #HelathcareDeals #Shareholdervalueunlock  

Sunway healthcare segment achieved an impressive 4-year CAGR of 34.9% in EBITDA from FY19-FY23, while its EBITDA margin of 26% sits at the upper end of the industry average range. Based on our sensitivity analysis, a listing valuation for SHG, anticipated by end-FY27 could potentially range from RM22.4bn to RM28.9bn, reflecting its superior EBITDA margin and other competitive advantages. At this valuation, the listed entity could potentially be the largest market capitalisation IPO listing in Bursa Malaysia. Sunway's diversified business portfolio, deeply entrenched in Malaysia's economic progress, presents an opportunity for investors to own a piece of the nation's robust growth trajectory. Maintain BUY with a higher TP of RM3.76 (from RM3.10) based on SOP-derived valuation. Link to report: https://lnkd.in/g76W9arp

As we move through 2024, we anticipate seeing continued investment in innovative health care segments as the economy and markets stabilize. Examining the data of deal-making can help you make more informed decisions on potential transactions.

CNBC-TV18 article highlighting an 8% surge in the stock value of Aster DM Healthcare. The increase comes as the company nears finalization of an investment deal concerning its Gulf business operations. The article delves into the implications of this development, shedding light on the potential impact on the company's market performance and its strategic moves in the Middle Eastern healthcare sector. Investors and stakeholders can gain insights into the evolving dynamics of Aster DM Healthcare's financial landscape and its positioning within the Gulf market. #AsterDMHealthcare #StockMarket #InvestmentDeal #GulfBusiness #MarketPerformance UnivDatos Market Insights (UMI)

Quite accurate description of the increasing HC IT M&A supply/demand imbalance: " HC IT M&A trends have become stratified into three distinct categories: high-quality, medium-quality, and distressed companies. Companies with strong financial performance (revenue, growth, and profitability) are attracting premium valuations, potentially due to both their merits and a supply demand imbalance. This high bar makes it challenging for mid-tier companies, particularly those with operating losses, to find buyers at their asking price due to a valuation mismatch. As for distressed companies, HGP estimates that roughly 15-20% of M&A deals in the US involve companies selling for less than their total invested capital. This stratification presents both challenges and opportunities for participants in the health IT M&A market. Well positioned strategic buyers face a trade-off between high-priced, high-quality ‘A’ assets and potentially undervalued distressed targets. Private equity firms must balance high-growth, high valuation opportunities with riskier, yet potentially rewarding lower quality investments. Mid-tier companies need to enhance their financial profiles to remain attractive in a market favoring extremes. " https://lnkd.in/etR5H667

Recently Anand Rathi stock broking firm published a good research about the hospital industry along with its recommendation for some stocks. Some of the key points I would like to share here : - Expected growth @ CAGR 10% in the next three years - Increase in healthcare spending because of rising income, aging population, urbanization etc - we all agree with this - Hospitals to benefit most from the increased spending. - Medical tourism expected to rise - Government becoming payor rather than service provider - this is interesting ... - Private sector to capture a larger pie of the growth. - it's visible .. many hospital chains have announced ambitious expansion plans. - Larger groups are going to grow more quickly because of the increase complexity of diseases and advanced infrastructure - My views here are slightly different. Of course, consolidation will happen. The larger groups will expand disproportionately to their mid and small-size counterpart. but among that also ,I see a sizable increase in doctor-driven professional hospitals, funding to the emerging group, and growth in the mid-size group in tier II and tier III cities. How do you visualize hospital sectors in the next five years? Do you feel that mid size players will be able to increase market share? Will they be able to improve corporate governance? Share your comments #hospitalindustry #growthstrategies #businessopportunites https://lnkd.in/daWzzUDE

A recent Cantech Letter new research coverage by RBC Capital Markets. The Cantech article reveals that RBC Capital Markets has initiated coverage on WELL Health Technologies, marking it as an undervalued and misunderstood entity. According to Cantech, RBC Capital Markets has given WELL a “Outperform” rating with a $5.50 target price. In the article, RBC analyst Douglas Miehm indicated key drivers for WELL’s valuation uplift include its misunderstood nature, the potential for strategic acquisitions, and the analyst’s belief that market estimates are too conservative. Miehm expects WELL’s revenue to increase from $926.0 million in 2024 to $996.6 million the following year, with adjusted EBITDA forecasted to rise from $129.7 million in 2024 to $153.2 million. In the article, Miehm suggests, “Through strategic acquisitions and organic growth, WELL has secured a leading position across several healthcare markets. WELL’s integrated healthcare services and digital solutions are set to transform patient and provider experiences.” Read the full Cantech Letter to uncover why the analyst at RBC Capital Markets is optimistic about WELL's strategic market positioning, growth trajectory, and the significant market opportunity it is poised to capture. https://ow.ly/RnlY50QAkB3

Per latest quarterly Pitch Book report, Healthcare Services deal activity slipped further in Q2 2024, down 16.5% from the previous quarter with an estimated 142 deals announced or closed. However, as is often the case, top-line numbers mask the real trend. The market turned a corner in mid-Q2, and deal making is beginning to accelerate, albeit cautiously. The Q2 decline in deal count is attributable primarily to PPM transactions, where market sentiment has deteriorated sharply and add-on activity has been low for a while. Even for PPMs, however, there are early signs of the market cracking open. Investors landscape by fund size is presented below.

Ankura is pleased to present an overview of healthcare transactions announced or closed during Q1 2024 in the United States. Total transactions decreased by 7.6% in the first quarter of 2024 after remaining relatively flat in the fourth quarter of 2023. Excluding the Life Sciences and Medical Office Buildings sectors, the total number of transactions in the United States decreased by 12.1%. Continue reading: https://ankura.co/4dTLxQk #HealthcareTrends #MergersAndAcquisitions #HealthcareIndustry #Q12024Insights #AnkuraInsights #HealthcareTransactions #MarketAnalysis #IndustryInsights #InvestmentTrends #RegulatoryImpact