#Companies #Potential
Indiaโs healthcare industry, which comprises hospitals, medical devices & equipment, health insurance, clinical trials, telemedicine, and medical tourism, has been growing at a CAGR of ~22% since 2016, reaching over $370 billion in 2022 and is expected to reach ~$670 billion by 2026. This increase in market size is due to growing demand for specialized and higher quality healthcare services. Further, over the last 1-2 years, the healthcare sector investments mainly centered around hospitals and health tech start-ups. โข The interim budget FY25, with an allocation of โน90,171 crore towards health, aims to improve access to healthcare services and infrastructure in India. The government's announcement to establish more medical colleges via utilizing existing hospital infrastructure is expected to address manpower shortages while also increasing access to healthcare education. insurance market will drive demand for healthcare services. and provides a huge opportunity in the Healthcare market. โข Health insurance propels the demand for healthcare services as insurance policies partly cover health expenses, eventually reducing the healthcare cost burden and encouraging an individual to undergo treatment. Therefore, a likely increase in the health โข India offers significant opportunity for the growth of medical tourism. The market is expected to rise at a CAGR of 65%-70% between FY21-25. India is a preferred destination for Medical Value Travel (MVT) which attracts patients from all over the globe โข The expanding and ageing population, rising cost of treatment, prevalence of non-communicable diseases and increasing penetration of healthcare insurance are some of the key growth drivers of the healthcare market. โข Changing demographic trends, rising per capita income, rising awareness for healthy lifestyle, under-penetrated healthcare space in India, higher share of non-communicable diseases, better healthcare technology coupled with cost competitiveness are some of CASE STUDY the factors which would be aiding the growth of the healthcare industry in India.
Indiaโs healthcare industry, which comprises hospitals, medical devices & equipment, health insurance, clinical trials, telemedicine, and medical tourism, has been growing at a CAGR of ~22% since 2016, reaching over $370 billion in 2022 and is expected to reach ~$670 billion by 2026. This increase in market size is due to growing demand for specialized and higher quality healthcare services. Further, over the last 1-2 years, the healthcare sector investments mainly centered around hospitals and health tech start-ups. โข The interim budget FY25, with an allocation of โน90,171 crore towards health, aims to improve access to healthcare services and infrastructure in India. The government's announcement to establish more medical colleges via utilizing existing hospital infrastructure is expected to address manpower shortages while also increasing access to healthcare education. insurance market will drive demand for healthcare services. and provides a huge opportunity in the Healthcare market. โข Health insurance propels the demand for healthcare services as insurance policies partly cover health expenses, eventually reducing the healthcare cost burden and encouraging an individual to undergo treatment. Therefore, a likely increase in the health โข India offers significant opportunity for the growth of medical tourism. The market is expected to rise at a CAGR of 65%-70% between FY21-25. India is a preferred destination for Medical Value Travel (MVT) which attracts patients from all over the globe โข The expanding and ageing population, rising cost of treatment, prevalence of non-communicable diseases and increasing penetration of healthcare insurance are some of the key growth drivers of the healthcare market. โข Changing demographic trends, rising per capita income, rising awareness for healthy lifestyle, under-penetrated healthcare space in India, higher share of non-communicable diseases, better healthcare technology coupled with cost competitiveness are some of CASE STUDY the factors which would be aiding the growth of the healthcare industry in India.
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#Companies #Outlook
Expansions- The company has been simultaneously pursuing organic and inorganic growth opportunities across both India and overseas units, thereby driving synergies from the existing operations. and is constantly exploring greenfielda and brownfield capex opportunities across both units, which would further give a better return on investments and will also aid in improving its efficiencies. The primary objective is to increase high end complex procedures across network which would improve overall ARPOB. โข India โข Cayman โข New Business - This is expected to witness growth on the back of rising throughputs and total numbers served under the same infrastructure. The focus would be to improve the payor mix, increase efficiency & improve capacity utilization of beds. Unit - They inaugurated a new hospital (day care focused) with ~50 beds in July 2024 with patient inflows being expected to kick in before the end of Q2 FY25. Being a new building, it would have a high fixed cost, leading to dilution of margins and operational loss in the initial period. Further, they are optimistic of this Caribbean business to continue performing well with synergies between these hospitals, led by strategic initiatives and investments. hospitals - Dharamshila, Gurugram and Mumbai are likely to witness improvements in terms of margins, going ahead. โข They launched Narayana Health Insurance in Mysore in late-June and expects this segment to be a narrow network operation. โข The gross debt in FY25 for expansion is expected to be ~โน2,400 crore which is an addition of โน1,000 crore YoY, while the net debt would be โน1,000 crore.
Expansions- The company has been simultaneously pursuing organic and inorganic growth opportunities across both India and overseas units, thereby driving synergies from the existing operations. and is constantly exploring greenfielda and brownfield capex opportunities across both units, which would further give a better return on investments and will also aid in improving its efficiencies. The primary objective is to increase high end complex procedures across network which would improve overall ARPOB. โข India โข Cayman โข New Business - This is expected to witness growth on the back of rising throughputs and total numbers served under the same infrastructure. The focus would be to improve the payor mix, increase efficiency & improve capacity utilization of beds. Unit - They inaugurated a new hospital (day care focused) with ~50 beds in July 2024 with patient inflows being expected to kick in before the end of Q2 FY25. Being a new building, it would have a high fixed cost, leading to dilution of margins and operational loss in the initial period. Further, they are optimistic of this Caribbean business to continue performing well with synergies between these hospitals, led by strategic initiatives and investments. hospitals - Dharamshila, Gurugram and Mumbai are likely to witness improvements in terms of margins, going ahead. โข They launched Narayana Health Insurance in Mysore in late-June and expects this segment to be a narrow network operation. โข The gross debt in FY25 for expansion is expected to be ~โน2,400 crore which is an addition of โน1,000 crore YoY, while the net debt would be โน1,000 crore.
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Narayana Hrudayalaya NH 1130-1230
Expected level 1450
Support 1072
Expected level 1450
Support 1072
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๐๐ผ๐ป๐ด ๐ง๐ฒ๐ฟ๐บ ยฎโข
Indigo Paints Limited1350-1465 Expected level 1700 Support1209
1465 to 1700+ ๐ฅLong term level hit
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Soon will share Diwali to Diwali pick
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PGEL 500-620
Expected level 840
Support 418
Expected level 840
Support 418
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NCC 245-295
Expected level 400
Support 190
Expected level 400
Support 190
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EMS Limited 690-795
Expected level 960
Support620
Expected level 960
Support620
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Praj Industries 600-720
Expected level 930
Support500
Expected level 930
Support500
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Olectra Greentech Limited 1400-1640
Expected level 2150
Support1250
Expected level 2150
Support1250
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PNC Infratech company details
PNC Infratech is a leading infrastructure construction, development, and management company in India with vast experience and a demonstrated expertise in major infrastructure projects, including expressways, highways, rural drinking water and irrigation, bridges, flyovers, airport runways, and industrial area development, amongst others. The company provides end-to-end infrastructure implementation solutions that include engineering, procurement and construction (EPC) services on a fixed-sum turnkey basis as well as on an item rate basis. It also executes and implements projects on a "DesignBuild-Finance-Operate-Transfer" (DBFOT), Operate-Maintain-Transfer (OMT) and Hybrid Annuity Mode (HAM). The company has executed 88 major infrastructure projects spread across 13 states, of which 64 are road EPC projects, 21 airport runway projects across India, railway track construction, power transmission and industrial area redevelopment project one each. It has a track record of timely execution of projects and has also received bonus for some of its projects for early completion. PNC is operating 5 BOT projects comprising of both toll & annuity assets, and 23 HAM projects (comprising 10 operational projects, 9 projects under construction, financial closure achieved for 3 projects and concession agreement executed for 1 project. As on 30th June 2024, the company has 30 subsidiaries and 2 Joint ventures.
PNC Infratech is a leading infrastructure construction, development, and management company in India with vast experience and a demonstrated expertise in major infrastructure projects, including expressways, highways, rural drinking water and irrigation, bridges, flyovers, airport runways, and industrial area development, amongst others. The company provides end-to-end infrastructure implementation solutions that include engineering, procurement and construction (EPC) services on a fixed-sum turnkey basis as well as on an item rate basis. It also executes and implements projects on a "DesignBuild-Finance-Operate-Transfer" (DBFOT), Operate-Maintain-Transfer (OMT) and Hybrid Annuity Mode (HAM). The company has executed 88 major infrastructure projects spread across 13 states, of which 64 are road EPC projects, 21 airport runway projects across India, railway track construction, power transmission and industrial area redevelopment project one each. It has a track record of timely execution of projects and has also received bonus for some of its projects for early completion. PNC is operating 5 BOT projects comprising of both toll & annuity assets, and 23 HAM projects (comprising 10 operational projects, 9 projects under construction, financial closure achieved for 3 projects and concession agreement executed for 1 project. As on 30th June 2024, the company has 30 subsidiaries and 2 Joint ventures.
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#SALES #GROWTH 5 Year CAGR 18.0%
In FY24, the sales grew by 9% YoY to โน8,650 cr (v/s โน7,956 cr in FY23). FY23 sales include โน37.02 cr early completion bonus (early completion of Purvanchal Expressway in the state of Uttar Pradesh). The YoY sales growth was mainly driven by strong execution of water projects (Jal Jeevan Mission project). In Q1 FY25, sales grew by 4% YoY to โน2,168 cr (v/s โน2,092 cr in Q1 FY24). This includes โน56.4 cr received as early bonus for early completion of one of the EPC projects in Maharashtra. It also includes โน515.8 cr worth of arbitration claim received for two SPVs namely PNC Raebareli Highways Pvt Ltd and PNC Kanpur Highways Ltd in regard to the โVivad se Vishwas IIโ scheme of Government of India. Excluding the bonus and claim, the sales during the quarter stood at โน1,595 cr, and de-grew by 24% YoY.
In FY24, the sales grew by 9% YoY to โน8,650 cr (v/s โน7,956 cr in FY23). FY23 sales include โน37.02 cr early completion bonus (early completion of Purvanchal Expressway in the state of Uttar Pradesh). The YoY sales growth was mainly driven by strong execution of water projects (Jal Jeevan Mission project). In Q1 FY25, sales grew by 4% YoY to โน2,168 cr (v/s โน2,092 cr in Q1 FY24). This includes โน56.4 cr received as early bonus for early completion of one of the EPC projects in Maharashtra. It also includes โน515.8 cr worth of arbitration claim received for two SPVs namely PNC Raebareli Highways Pvt Ltd and PNC Kanpur Highways Ltd in regard to the โVivad se Vishwas IIโ scheme of Government of India. Excluding the bonus and claim, the sales during the quarter stood at โน1,595 cr, and de-grew by 24% YoY.
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#EBITDA #GROWTH 5 Year CAGR 14.8%
In FY24, the EBITDA grew by 25% YoY to โน2,005 cr. The EBITDA growth was mainly led by decline in other expenses. Segment wise, all business segment reported doubledigit EBIT growth YoY. In Q1 FY25, the EBITDA increased by 122% YoY to โน969 cr. It included the bonus for early completion and arbitration claim. Excluding bonus and claim, EBITDA de-grew by 9% YoY to โน397cr.
In FY24, the EBITDA grew by 25% YoY to โน2,005 cr. The EBITDA growth was mainly led by decline in other expenses. Segment wise, all business segment reported doubledigit EBIT growth YoY. In Q1 FY25, the EBITDA increased by 122% YoY to โน969 cr. It included the bonus for early completion and arbitration claim. Excluding bonus and claim, EBITDA de-grew by 9% YoY to โน397cr.
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#PAT #GROWTH 5 Year CAGR 21.0%
In FY24, the PAT increased by 38% YoY to โน909 cr (v/s โน658 cr in FY23). The finance cost increased by 41% YoY to โน660 cr because of increase in borrowings. The timely execution of projects by company plays a crucial role in securing profitability. In Q1 FY25, the PAT grew by 218% YoY to โน575 cr. The finance cost increased during the quarter. Excluding bonus and claim, the PAT de-grew by ~25% YoY and stood at ~โน136 cr.
In FY24, the PAT increased by 38% YoY to โน909 cr (v/s โน658 cr in FY23). The finance cost increased by 41% YoY to โน660 cr because of increase in borrowings. The timely execution of projects by company plays a crucial role in securing profitability. In Q1 FY25, the PAT grew by 218% YoY to โน575 cr. The finance cost increased during the quarter. Excluding bonus and claim, the PAT de-grew by ~25% YoY and stood at ~โน136 cr.
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#EBITDA #MARGIN
In FY24, the EBITDA margin expanded by 306 bps YoY to 23.2%. Segment wise, the road business EBIT margin expanded by 454 bps YoY to 15.3%, however the water business margin contracted by 161 bps YoY to 15.6%. Toll/Annuity business EBIT margin expanded to 68.5% from 46.5% in FY23. The companyโs cost of material consumed/contract paid constitutes ~84% of the total expenses followed by other expenses ~10% and employee benefit expenses ~6%. In Q1 FY25, the EBITDA margin stood at 44.7% (v/s 20.9% in Q1 FY24). Excluding bonus and claim, EBITDA margin expanded by 400 bps YoY to 24.9%. PNC Infratech avoids projects below a minimum profitability threshold, which enables it to sustain its operating margins.
In FY24, the EBITDA margin expanded by 306 bps YoY to 23.2%. Segment wise, the road business EBIT margin expanded by 454 bps YoY to 15.3%, however the water business margin contracted by 161 bps YoY to 15.6%. Toll/Annuity business EBIT margin expanded to 68.5% from 46.5% in FY23. The companyโs cost of material consumed/contract paid constitutes ~84% of the total expenses followed by other expenses ~10% and employee benefit expenses ~6%. In Q1 FY25, the EBITDA margin stood at 44.7% (v/s 20.9% in Q1 FY24). Excluding bonus and claim, EBITDA margin expanded by 400 bps YoY to 24.9%. PNC Infratech avoids projects below a minimum profitability threshold, which enables it to sustain its operating margins.
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#ROCE
In FY24, the ROCE improved to 16.07% led by high increase in PBIT. Over the past two decades, the company has been able to successfully execute several infrastructure projects in several states, which has helped in building strong client relations. Strong client relations would help in increasing order book and the companyโs selection of projects above a minimum profitability threshold, strong execution and timely completion of projects will help in improving the operating profit and return ratios.
In FY24, the ROCE improved to 16.07% led by high increase in PBIT. Over the past two decades, the company has been able to successfully execute several infrastructure projects in several states, which has helped in building strong client relations. Strong client relations would help in increasing order book and the companyโs selection of projects above a minimum profitability threshold, strong execution and timely completion of projects will help in improving the operating profit and return ratios.
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#COMPANIES #POTENTIAL
โข National Infrastructure Pipeline (NIP) projected investments to the tune of โน111 lakh cr during the FY20-25. The report mentioned that 18% of the targeted investment is expected to be made in the road sector. โข The government has allocated โน70,163 cr to provide tap water connections to households in FY25 under the Jal Jeevan Mission. There is an assured funding of ~โน1.42 lakh crore for this project up to FY26. Road sector: โข India has the second-largest road network globally with a total road network of ~67 lakh km of which, national highways and expressways comprised 1,46,145 km (~2%) and state highways 1,79,535 km (~3%). Major district roads and rural roads accounted for the remaining ~63 lakh km (~95%). There is just 15% (~21,150 km) private sector participation in national highways. โข About 1,820 projects comprising ~89,300 km have been identified to be implemented in 2020-25. The total capex for these projects by the centre is estimated at โน19.35 lakh cr over FY20-25. โข It includes the development of overall 60,000 km of national highways including 2,500 km of expressways, 9,000 km of economic corridors, 2,000 km of coastal and port connectivity, bypasses for 45 towns and enhanced connectivity for 100 tourist destinations by 2024. These projects include the construction of new expressways such as Delhi-Mumbai Expressway, Bengaluru-Chennai Expressway, etc. โข In the interim budget held in July 2024, the government allocated ~โน1.68 lakh cr to NHAI and โน2.78 lakh cr to MoRTH for FY25. โข In FY25, the road sector is expected to produce sluggish results on account of delayed project awarding from the government due to the general election, delays in land acquisition, rising competitive pressure, prolonged period between announcement and appointment dates of projects, etc. Moreover, the execution of the HAM projects has also been delayed on the back of above reasons.
โข National Infrastructure Pipeline (NIP) projected investments to the tune of โน111 lakh cr during the FY20-25. The report mentioned that 18% of the targeted investment is expected to be made in the road sector. โข The government has allocated โน70,163 cr to provide tap water connections to households in FY25 under the Jal Jeevan Mission. There is an assured funding of ~โน1.42 lakh crore for this project up to FY26. Road sector: โข India has the second-largest road network globally with a total road network of ~67 lakh km of which, national highways and expressways comprised 1,46,145 km (~2%) and state highways 1,79,535 km (~3%). Major district roads and rural roads accounted for the remaining ~63 lakh km (~95%). There is just 15% (~21,150 km) private sector participation in national highways. โข About 1,820 projects comprising ~89,300 km have been identified to be implemented in 2020-25. The total capex for these projects by the centre is estimated at โน19.35 lakh cr over FY20-25. โข It includes the development of overall 60,000 km of national highways including 2,500 km of expressways, 9,000 km of economic corridors, 2,000 km of coastal and port connectivity, bypasses for 45 towns and enhanced connectivity for 100 tourist destinations by 2024. These projects include the construction of new expressways such as Delhi-Mumbai Expressway, Bengaluru-Chennai Expressway, etc. โข In the interim budget held in July 2024, the government allocated ~โน1.68 lakh cr to NHAI and โน2.78 lakh cr to MoRTH for FY25. โข In FY25, the road sector is expected to produce sluggish results on account of delayed project awarding from the government due to the general election, delays in land acquisition, rising competitive pressure, prolonged period between announcement and appointment dates of projects, etc. Moreover, the execution of the HAM projects has also been delayed on the back of above reasons.
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#COMPANY #OUTLOOK
In FY25, the management expects revenue to remain flat or de-growth by ~10% YoY. This will be on account of general election, delayed and prolonged monsoon, heatwave, slow awarding of projects in FY24, etc. Slow awarding of highway projects is a trend seen during election and hence many backlogged projects are expected to be awarded during FY25. Hence it anticipates ~15%-20% revenue growth in FY26. โข The company has recently been awarded three new major projects for an aggregate contract value of โน6,670 cr. Including the value of above three new projects, the companyโs gross order book as on date is over โน21,000 cr. โข Out of the unexecuted order book, the highway, expressways & canals projects contributed ~82% and water projects contributed ~18%. โข The management anticipates revenue of ~โน1,500 cr from water projects in FY25. โข The company anticipates EBITDA margin (standalone) to be ~12%-12.5% for FY25. โข Currently, the company has a total of 28 projects in public-private partnership (PPP) format. It comprises 3 build operate transfer (BOT) toll projects, 2 BOT annuity projects and 23 hybrid annuity mode (HAM) projects. The aggregate bid projects cost of all 23 HAM projects is ~โน30,000 cr. Out of 23 HAM projects, the company had achieved commercial operations date (COD) and provisional commercial operation date (PCOD) for 10 projects, 9 projects are under construction, 3 projects achieved financial closure and 1 project has had its concession agreement executed. โข In terms of equity investment, the total requirement for the HAM projects which are under construction would be ~โน3,092 cr. Out of this, the company has already infused ~โน2,079 cr till June 2024. The balance equity of ~โน1,013 cr will be invested over the next 2-3 years and will be funded through internal accruals generated during the same period. CASE STUDY โข Equity infusion for the rest of FY25 would be ~โน587 cr, for FY26 it is expected at ~โน290 cr and FY27 at ~โน140 cr.
The asset monetization of 12 road projects would be in two phases. In first phase, these are 7 projects and second phase 5 projects. In first phase, the enterprise value of transaction is โน5,015 cr, debt infused โน3,559 cr and equity value ~โน999 cr. In second phase, the enterprise value of transaction is โน3,990 cr, debt โน2,920 cr and equity value โน740 cr. The company expects to receive the payment of first tranche by the end of FY25. โข Post asset monetization, the company expects the debt-to-equity ratio to come down below 1x. โข The company has been barred by the MORTH from participating in any tender process of the Ministry with a period of one year, starting 18th October, 2024.
In FY25, the management expects revenue to remain flat or de-growth by ~10% YoY. This will be on account of general election, delayed and prolonged monsoon, heatwave, slow awarding of projects in FY24, etc. Slow awarding of highway projects is a trend seen during election and hence many backlogged projects are expected to be awarded during FY25. Hence it anticipates ~15%-20% revenue growth in FY26. โข The company has recently been awarded three new major projects for an aggregate contract value of โน6,670 cr. Including the value of above three new projects, the companyโs gross order book as on date is over โน21,000 cr. โข Out of the unexecuted order book, the highway, expressways & canals projects contributed ~82% and water projects contributed ~18%. โข The management anticipates revenue of ~โน1,500 cr from water projects in FY25. โข The company anticipates EBITDA margin (standalone) to be ~12%-12.5% for FY25. โข Currently, the company has a total of 28 projects in public-private partnership (PPP) format. It comprises 3 build operate transfer (BOT) toll projects, 2 BOT annuity projects and 23 hybrid annuity mode (HAM) projects. The aggregate bid projects cost of all 23 HAM projects is ~โน30,000 cr. Out of 23 HAM projects, the company had achieved commercial operations date (COD) and provisional commercial operation date (PCOD) for 10 projects, 9 projects are under construction, 3 projects achieved financial closure and 1 project has had its concession agreement executed. โข In terms of equity investment, the total requirement for the HAM projects which are under construction would be ~โน3,092 cr. Out of this, the company has already infused ~โน2,079 cr till June 2024. The balance equity of ~โน1,013 cr will be invested over the next 2-3 years and will be funded through internal accruals generated during the same period. CASE STUDY โข Equity infusion for the rest of FY25 would be ~โน587 cr, for FY26 it is expected at ~โน290 cr and FY27 at ~โน140 cr.
The asset monetization of 12 road projects would be in two phases. In first phase, these are 7 projects and second phase 5 projects. In first phase, the enterprise value of transaction is โน5,015 cr, debt infused โน3,559 cr and equity value ~โน999 cr. In second phase, the enterprise value of transaction is โน3,990 cr, debt โน2,920 cr and equity value โน740 cr. The company expects to receive the payment of first tranche by the end of FY25. โข Post asset monetization, the company expects the debt-to-equity ratio to come down below 1x. โข The company has been barred by the MORTH from participating in any tender process of the Ministry with a period of one year, starting 18th October, 2024.
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