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Listed Hospitals / Healthcare sector Companies in India - something seems out of whack

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)
(x)
P/BV (TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
Fortis Health. 6,839.44 115.24 2.34 111.46 2.0 2.3 0.64
Apollo Hospitals 6,603.66 45.09 4.28 15.64 10.4 12.8 0.39
Indrapr.Medical 423.06 13.69 3.12 6.32 24.1 30.0 0.31
Poly Medicure 251.63 13.36 4.21 4.63 31.0 26.2 0.65
Siemens Health 247.56 0.00 5.07 6.49 11.3 15.1 0.42
Kovai Medical 150.48 15.72 3.74 8.75 32.9 17.7 2.53
Transgene Biotek 90.60 167.78 0.78 20.83 0.3 1.2 0.14
Fortis Malar 66.83 20.44 3.27 8.51 15.6 19.5 0.71
Regency Hospital 63.98 39.01 2.76 0.00 5.3 11.4 0.84
Span Diagnostics 47.83 8.48 2.04 3.46 25.8 23.1 1.30
Emed.com Techno 46.71 0.00 11.31 0.00 0.0 0.0 0.00
Noida Medicare 37.91 8.26 1.40 2.24 7.5 11.2 0.41
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
Advanced Micron. 26.58 29.54 1.44 8.53 4.5 15.6 0.66
Source: indiainfoline.com

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.



Disclosure: None