๐จ Semiconductor investments approved by India.
1. Micron Technology - Rs 22,516 crore - Sanand, Gujarat.
2. Tata Electronics & Powerchip - Rs 91,000 crore - Dholera, Gujarat.
3. Tata Electronics - Rs 27,000 crore - Morigaon, Assam.
4. CG Power + Renesas + Stars Microelectronics - Rs 7,600 crore - Sanand, Gujarat.
5. Kaynes Semicon - Rs 3,300 crore - Sanand, Gujarat.
6. HCL + Foxconn JV - Rs 3,706 crore - Jewar, Uttar Pradesh.
As of now, The union cabinet has approved six semiconductor investments.
1. Micron Technology - Rs 22,516 crore - Sanand, Gujarat.
2. Tata Electronics & Powerchip - Rs 91,000 crore - Dholera, Gujarat.
3. Tata Electronics - Rs 27,000 crore - Morigaon, Assam.
4. CG Power + Renesas + Stars Microelectronics - Rs 7,600 crore - Sanand, Gujarat.
5. Kaynes Semicon - Rs 3,300 crore - Sanand, Gujarat.
6. HCL + Foxconn JV - Rs 3,706 crore - Jewar, Uttar Pradesh.
As of now, The union cabinet has approved six semiconductor investments.
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Aster DM Healthcare Limited Company Details Report
Aster DM Healthcare Limited is one of the largest integrated private healthcare service providers operating in India with a strong presence across primary, secondary, tertiary and quaternary healthcare. At present, ~70% of the business comes from tier-II and tierIII cities. As on 31st December 2024, it has presence in Southern & Western region, in the states of Karnataka (Hospital: 4, Beds: 1,192); Maharashtra (Hospital: 1, Beds: 254); Andhra Pradesh (Hospital: 6, Beds: 889); Telangana (Hospital:1, Beds: 158) and Kerala Hospital (Hospital: 6, Beds: 2,635). As on 31st December 2024, it has 19 hospitals with a total capacity of 5,128 beds, 13 clinics, 203 pharmacies (operated by Alfaone Retail Pharmacies Pvt Ltd under brand license from Aster) and 254 labs & patient experience centers across 5 states in India. Of the total capacity, ~3,766 beds are currently operational. The company has successfully concluded the segregation of its India and GCC (Gulf Cooperation Council) business on 3rd April 2024 for an equity value of $1bn (โน8,215 cr). In FY24, GCC business contributed 74% to the total revenue.
Aster DM Healthcare Limited is one of the largest integrated private healthcare service providers operating in India with a strong presence across primary, secondary, tertiary and quaternary healthcare. At present, ~70% of the business comes from tier-II and tierIII cities. As on 31st December 2024, it has presence in Southern & Western region, in the states of Karnataka (Hospital: 4, Beds: 1,192); Maharashtra (Hospital: 1, Beds: 254); Andhra Pradesh (Hospital: 6, Beds: 889); Telangana (Hospital:1, Beds: 158) and Kerala Hospital (Hospital: 6, Beds: 2,635). As on 31st December 2024, it has 19 hospitals with a total capacity of 5,128 beds, 13 clinics, 203 pharmacies (operated by Alfaone Retail Pharmacies Pvt Ltd under brand license from Aster) and 254 labs & patient experience centers across 5 states in India. Of the total capacity, ~3,766 beds are currently operational. The company has successfully concluded the segregation of its India and GCC (Gulf Cooperation Council) business on 3rd April 2024 for an equity value of $1bn (โน8,215 cr). In FY24, GCC business contributed 74% to the total revenue.
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#SALES #GROWTH 5 Year CAGR 23.0%
In FY24, revenue grew by ~24% YoY to โน3,699 cr, led by bed capacity increase of ~550 beds and a 10% rise in ARPOB. Regionally, Kerala, Karnataka and AP clusters grew by ~19%, ~35% and ~20%, respectively. In 9M FY25, sales grew by ~15% YoY to โน3,138 cr, driven by ~4% increase in occupied beds and ~12% rise in ARPOB levels. Revenue from the new business (labs & pharmacies) declined by ~3% YoY to โน208 cr. The geographical revenue mix during 9M FY25 was - Kerala 53%, Karnataka & Maharashtra 35% and Andhra & Telangana 12%. On the revenue front, Kerela, Karnataka & Maharashtra and Andhra & Telangana sales was up by ~8%, ~33% and ~16%, respectively on a YoY basis, primarily on account of rising ARPOB levels, IP (in-patient) and OP (outpatient) volumes. However, Kerala cluster observed lower growth due to factors like changing flu season during the period, impacting footfalls.
In FY24, revenue grew by ~24% YoY to โน3,699 cr, led by bed capacity increase of ~550 beds and a 10% rise in ARPOB. Regionally, Kerala, Karnataka and AP clusters grew by ~19%, ~35% and ~20%, respectively. In 9M FY25, sales grew by ~15% YoY to โน3,138 cr, driven by ~4% increase in occupied beds and ~12% rise in ARPOB levels. Revenue from the new business (labs & pharmacies) declined by ~3% YoY to โน208 cr. The geographical revenue mix during 9M FY25 was - Kerala 53%, Karnataka & Maharashtra 35% and Andhra & Telangana 12%. On the revenue front, Kerela, Karnataka & Maharashtra and Andhra & Telangana sales was up by ~8%, ~33% and ~16%, respectively on a YoY basis, primarily on account of rising ARPOB levels, IP (in-patient) and OP (outpatient) volumes. However, Kerala cluster observed lower growth due to factors like changing flu season during the period, impacting footfalls.
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#EBITDA #GROWTH
In FY24, EBITDA increased by ~29% YoY to โน578 cr. The performance was aided by improved operating performance across matured hospitals. In 9M FY25, EBITDA grew by ~37% YoY to โน572 cr. This was supported by growth in operating profit. Cluster-wise, operating EBITDA stood at: Kerala โน382 cr (v/s โน317 cr in 9M FY24), Karnataka & Maharashtra โน244 cr (v/s โน154 cr in 9M FY24) and Andhra & Telangana โน47 cr (v/s โน33 cr in 9M FY24). Additionally, manpower costs and overheads also contributed through operating leverage to this growth. The capacity expansion, ARPOB growth, increasing international revenue as well as focus on advanced quaternary and tertiary healthcare services is likely to aid in further improvement across operating performance
In FY24, EBITDA increased by ~29% YoY to โน578 cr. The performance was aided by improved operating performance across matured hospitals. In 9M FY25, EBITDA grew by ~37% YoY to โน572 cr. This was supported by growth in operating profit. Cluster-wise, operating EBITDA stood at: Kerala โน382 cr (v/s โน317 cr in 9M FY24), Karnataka & Maharashtra โน244 cr (v/s โน154 cr in 9M FY24) and Andhra & Telangana โน47 cr (v/s โน33 cr in 9M FY24). Additionally, manpower costs and overheads also contributed through operating leverage to this growth. The capacity expansion, ARPOB growth, increasing international revenue as well as focus on advanced quaternary and tertiary healthcare services is likely to aid in further improvement across operating performance
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#PAT #GROWTH
In FY24, PAT stood at โน216 cr, up by ~26% YoY. The growth was aided by an improved topline and operating profit growth, partially offset by increase in depreciation and interest costs. Excluding the share of loss of equity accounted investees, the same grew by ~28% to โน205 cr. In 9M FY25, PAT was โน251 cr, a growth of ~54% YoY, showcasing strong operational performance and increased other income, attributable towards investing proceeds from the GCC (Gulf Corporation Council) business segregation. However, excluding a one-off merger transaction cost of ~โน24 cr, the same was up by ~69% YoY to โน275 cr. Keeping in view the companyโs expansion plans, it is likely that the depreciation expense will continue to remain on the higher side.
In FY24, PAT stood at โน216 cr, up by ~26% YoY. The growth was aided by an improved topline and operating profit growth, partially offset by increase in depreciation and interest costs. Excluding the share of loss of equity accounted investees, the same grew by ~28% to โน205 cr. In 9M FY25, PAT was โน251 cr, a growth of ~54% YoY, showcasing strong operational performance and increased other income, attributable towards investing proceeds from the GCC (Gulf Corporation Council) business segregation. However, excluding a one-off merger transaction cost of ~โน24 cr, the same was up by ~69% YoY to โน275 cr. Keeping in view the companyโs expansion plans, it is likely that the depreciation expense will continue to remain on the higher side.
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#EBITDA #MARGIN
In FY24, EBITDA margin expanded by 63 bps YoY to 15.6%, supported by cost efficiencies, operating leverage and labs breakeven during the period. In 9M FY25, EBITDA margin expanded by ~288 bps YoY to 18.2%, on account of strategic cost optimization strategies, reduction in ALOS and enhanced EBITDA performance in the lab business. The core hospital business posted an operating EBITDA margin of ~22%. While the margins for mature hospitals expanded by ~300 bps YoY to 25%. Cluster-wise, operating EBITDA margin for Kerala was 23.7% (v/s 21.3% in 9M FY24), Karnataka & Maharashtra 23.2% (v/s 19.4% in 9M FY24) and Andhra & Telangana 13.2% cr (v/s 10.8% in 9M FY24). In India, its is focusing on large-format hospitals in tier-1 cities which are expected to deliver higher margins. This may be partially offset by losses incurred at the newly commissioned hospitals.
In FY24, EBITDA margin expanded by 63 bps YoY to 15.6%, supported by cost efficiencies, operating leverage and labs breakeven during the period. In 9M FY25, EBITDA margin expanded by ~288 bps YoY to 18.2%, on account of strategic cost optimization strategies, reduction in ALOS and enhanced EBITDA performance in the lab business. The core hospital business posted an operating EBITDA margin of ~22%. While the margins for mature hospitals expanded by ~300 bps YoY to 25%. Cluster-wise, operating EBITDA margin for Kerala was 23.7% (v/s 21.3% in 9M FY24), Karnataka & Maharashtra 23.2% (v/s 19.4% in 9M FY24) and Andhra & Telangana 13.2% cr (v/s 10.8% in 9M FY24). In India, its is focusing on large-format hospitals in tier-1 cities which are expected to deliver higher margins. This may be partially offset by losses incurred at the newly commissioned hospitals.
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#ROCE
In FY24, ROCE for the company stood at 5.76%. The increase in the ratio was supported by an improvement in PBIT. ROCE at a consolidated level stood at ~19% in 9M FY25. Whereas ROCE for the hospital and clinics segment was ~26% in 9M FY25 v/s ~21% in 9M FY24; mature hospitals witnessed an increase in the same to ~36% during the period.
In FY24, ROCE for the company stood at 5.76%. The increase in the ratio was supported by an improvement in PBIT. ROCE at a consolidated level stood at ~19% in 9M FY25. Whereas ROCE for the hospital and clinics segment was ~26% in 9M FY25 v/s ~21% in 9M FY24; mature hospitals witnessed an increase in the same to ~36% during the period.
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#ROE
In FY24, ROE for the company witnessed an increase to 4.97%, aided by improved profit growth. The company has a focused presence in Southern and Western India, delivering quality healthcare services which in turn drives patient volumes. Strong patient volumes post-pandemic and cost efficiency drove the overall profit and improved the ROE. The company is foraying across new facilities which would help to widen its patient base. This will help in improving the profitability and maintaining strong return ratios of the company going ahead.
In FY24, ROE for the company witnessed an increase to 4.97%, aided by improved profit growth. The company has a focused presence in Southern and Western India, delivering quality healthcare services which in turn drives patient volumes. Strong patient volumes post-pandemic and cost efficiency drove the overall profit and improved the ROE. The company is foraying across new facilities which would help to widen its patient base. This will help in improving the profitability and maintaining strong return ratios of the company going ahead.
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#SECTOR #POTENTIAL
โข Indian healthcare industry - The industry is growing at a significant pace, owing to its strengthening coverage, services and increasing expenditure by the public and private sectors. Going forward, the industry is anticipated to grow, mainly driven by the increased government expenditure and initiatives to boost the healthcare sector, followed by better case mix, higher ARPOBs and bed additions. The sector is also witnessing significant private equity (PE) activity, with investments directed towards both multispecialty and single-specialty hospitals and clinics. โข Government Initiatives - Various initiatives have been undertaken which seeks to strengthen the healthcare system, right from primary to tertiary care, thereby providing healthcare assurance and increase the coverage of healthcare services. โข Health โข Urban/Rural โข Medical Insurance industry - The overall sector in India has undergone significant changes driven by regulatory reforms, technological advancements and increased public awareness. Standalone health insurance premiums surged by ~26% YoY in FY24. This further 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. India is a preferred destination for Medical Value Travel (MVT), providing a huge opportunity in the Healthcare market. shift - Existing hospital beds and hospitalization services have a high level of concentration in urban areas, which in turn impacts the accessibility and affordability of these services in rural areas. While in the public sector, ~61% of beds are present in urban areas, the proportion jumps to 80% in case of the private sector. On an aggregate level, 72% of total beds are in urban areas while only 28% are in rural areas. Expenditure - While the all-India average medical expenditure per hospitalization case in public hospitals is low at ~โน4,452, the same for private hospitals is as high as ~โน31,845. Despite higher costs, mostly people depend on private hospitals for treatment as these largely meet service quality needs and demands.
โข Indian healthcare industry - The industry is growing at a significant pace, owing to its strengthening coverage, services and increasing expenditure by the public and private sectors. Going forward, the industry is anticipated to grow, mainly driven by the increased government expenditure and initiatives to boost the healthcare sector, followed by better case mix, higher ARPOBs and bed additions. The sector is also witnessing significant private equity (PE) activity, with investments directed towards both multispecialty and single-specialty hospitals and clinics. โข Government Initiatives - Various initiatives have been undertaken which seeks to strengthen the healthcare system, right from primary to tertiary care, thereby providing healthcare assurance and increase the coverage of healthcare services. โข Health โข Urban/Rural โข Medical Insurance industry - The overall sector in India has undergone significant changes driven by regulatory reforms, technological advancements and increased public awareness. Standalone health insurance premiums surged by ~26% YoY in FY24. This further 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. India is a preferred destination for Medical Value Travel (MVT), providing a huge opportunity in the Healthcare market. shift - Existing hospital beds and hospitalization services have a high level of concentration in urban areas, which in turn impacts the accessibility and affordability of these services in rural areas. While in the public sector, ~61% of beds are present in urban areas, the proportion jumps to 80% in case of the private sector. On an aggregate level, 72% of total beds are in urban areas while only 28% are in rural areas. Expenditure - While the all-India average medical expenditure per hospitalization case in public hospitals is low at ~โน4,452, the same for private hospitals is as high as ~โน31,845. Despite higher costs, mostly people depend on private hospitals for treatment as these largely meet service quality needs and demands.
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Aster DM Healthcare 450-580
Expected level 730
Support 364
Expected level 730
Support 364
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KAYNES TECHNOLOGY Conference call highlights
Guidance: Kaynes guided 60% revenue growth with EBITDA margins expanding 50bp for FY26 to 15.6% (+200bp for next few years) driven by strong growth across all business verticals and client additions.
Financials: Average monthly order inflow stands at INR5.1bn (versus INR4bnearlier). NWC days stand at 87 and are likely to improve significantly in FY26, driven by inventory optimisation and better production planning.Other non-current assets have increased due to acquisition of old customer contracts with deferred payment terms; new contracts have clear payment terms.
Guidance: Kaynes guided 60% revenue growth with EBITDA margins expanding 50bp for FY26 to 15.6% (+200bp for next few years) driven by strong growth across all business verticals and client additions.
Financials: Average monthly order inflow stands at INR5.1bn (versus INR4bnearlier). NWC days stand at 87 and are likely to improve significantly in FY26, driven by inventory optimisation and better production planning.Other non-current assets have increased due to acquisition of old customer contracts with deferred payment terms; new contracts have clear payment terms.
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Upcoming facilities: Construction of HDI PCB plant in Chennai and OSAT plant in Sanand is on track and is likely to complete construction by Dec-25. Pilot production from these facilities to start by Q4FY26 with factories likely to be operational in FY27. Five customers are in active talks; one has already issued an RFQ. Much of the capacity will be booked before operations begin, as per the company. Kaynes has applied under SPECS 2.0 and expects to receive PLI benefits. Kaynes has completed its Chamarajanagar facility with a couple of exclusive zones for some large customers and set to start working at higher capacity
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Capex: Total capex for semicon plant and PCB plant is INR34bn (50% from central and 20โ25% from state government subsidy) and INR14bn (40% from central and 25% state government subsidy). The overall capex is to be completed by FY28 with significant capacity utilisation. Capex for the EMS business would only be the maintenance capex.
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Order book:
Order book as of Mar-25 stands at INR66bn with majority orders from aerospace, industrial and automotive (margin accretive orders). These orders are higher margin than the ones the company is delivering right now and to be executed over 1โ1.5 years.
Order book as of Mar-25 stands at INR66bn with majority orders from aerospace, industrial and automotive (margin accretive orders). These orders are higher margin than the ones the company is delivering right now and to be executed over 1โ1.5 years.
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August Electronics, Canada: With the recent acquisition of August Electronics in Canada, Kaynes has strengthened its North American footprint, adding
manufacturing capability in Canada and large high margin customers. August Electronics has better EBITDA margins than the consolidated market (one of the premier vendors in Canada) set to grow at 15โ20%. The acquisition provides the company exposure to sectors such as instrumentation, petroleum, medical and IT (high value addition areas).
manufacturing capability in Canada and large high margin customers. August Electronics has better EBITDA margins than the consolidated market (one of the premier vendors in Canada) set to grow at 15โ20%. The acquisition provides the company exposure to sectors such as instrumentation, petroleum, medical and IT (high value addition areas).
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