Came across the following comparison table on health care companies in Indian stock market (which increasingly seem to be the Greater Fools' Market).
|Company||Market Cap |
(Rs. in Cr.)
|P/E (NYSE:TTM) |
|P/BV (TTM) |
|Lotus Eye Care||37.75||0.00||0.72||16.56||-0.5||0.9||0.08|
|Dr Agarwal's Eye||33.77||19.75||3.34||4.74||5.2||12.7||3.12|
The top two companies (by Market Cap) are almost 1.5 bn USD companies. But their return metrics are atrocious for the valuations they are commanding. Smaller companies have more richer return metrics and their valuations seem attractive as well (especially when compared to BSE Sensex 30 P/E multiple).
Even, at adjusted ROE (defined as ROE/(P/B)), Indraprastha Medical (the 3rd company in the list) yields 8% - I would say a pretty attractive return from a listed company. It has quite endearing P/E of 13.7x too.
Span Diagnostics & Kovia Medical seem other interesting companies based on numbers - they're small though. Won't harm to dig deeper.
Caution: These are notes to myself.