#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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Aerospace: Kaynes has been a strategic partner to ISRO for over a decade and aims to deepen this collaboration, especially in emerging space and defence technologies. With the launch of its subsidiary Mechatronics, the company is
building significant capacity to become a premier supplier of satellite
components and possibly small satellite launch systems. It is also exploring national security applications through Sea Stick Venture, backed by experienced ex-government scientists.
building significant capacity to become a premier supplier of satellite
components and possibly small satellite launch systems. It is also exploring national security applications through Sea Stick Venture, backed by experienced ex-government scientists.
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Company introduction
Founded in 1998, Kaynes Technology (Kaynes) has over 3 decades of experience in providing conceptual design, process engineering, integrated manufacturing and life-cycle support to OEMs. It is a leading integrated and IoT-enabled solutions provider with capabilities across the entire spectrum of ESDM. Currently, it is operating in the low-volume high-value niche in the EMS space. Industrial
electronics, railway electronics, medical electronics, defence electronics, automotive electronics and IT hardware are the key verticals that Kaynes services. It has served 370+ customers in 28+ countries; including marquee MNCs. Kaynes operates 16 advanced manufacturing facilities to undertake high mix and high value products with variable or flexible volumes. It has evolved as an integrated electronics player by moving into OSAT and HDI PCB.
Founded in 1998, Kaynes Technology (Kaynes) has over 3 decades of experience in providing conceptual design, process engineering, integrated manufacturing and life-cycle support to OEMs. It is a leading integrated and IoT-enabled solutions provider with capabilities across the entire spectrum of ESDM. Currently, it is operating in the low-volume high-value niche in the EMS space. Industrial
electronics, railway electronics, medical electronics, defence electronics, automotive electronics and IT hardware are the key verticals that Kaynes services. It has served 370+ customers in 28+ countries; including marquee MNCs. Kaynes operates 16 advanced manufacturing facilities to undertake high mix and high value products with variable or flexible volumes. It has evolved as an integrated electronics player by moving into OSAT and HDI PCB.
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Key Risk
Currently, the domestic EMS sector is turbo-charged largely due to favourable government policies. Any change in government stance on manufacturing-related
policies, particularly adverse changes, shall be the biggest risk to the EMS sector
growth. Kaynes is one of the largest EMS players in India. As the EMS sector grows,
we see a host of EMS players becoming large. If Kaynes is unable to retain its pace of growth and scale, it shall face challenges in the future from competition; this is potential risk.
Currently, the domestic EMS sector is turbo-charged largely due to favourable government policies. Any change in government stance on manufacturing-related
policies, particularly adverse changes, shall be the biggest risk to the EMS sector
growth. Kaynes is one of the largest EMS players in India. As the EMS sector grows,
we see a host of EMS players becoming large. If Kaynes is unable to retain its pace of growth and scale, it shall face challenges in the future from competition; this is potential risk.
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Global Health Limited company details report
Global Health Limited is one of the largest private multi-specialty tertiary care providers, operating in the Northern and Eastern regions of India. Under the brand โMedantaโ it operates with a network of 5 hospitals in Gurugram, Indore, Ranchi, Lucknow and Patna. Apart from it, it has an upcoming hospital in Noida. GHL offers a comprehensive range of healthcare services across over 30 specialties and super specialties, including heart institute, cancer, neurology, internal medicines, digestives, kidney & urology, orthopedics, liver transplantation and others. As on 31st December 2024, it has a total bed capacity of 3,042 beds with 2,427 beds operational at a group level. The Groupโs flagship hospital at Gurugram is one of the largest hospitals in India with a capacity of ~1,391 beds in a single location. Additionally, to offer a streamlined pathway for patient referrals, it operates 6 multi-specialty clinics with a diverse range of services such as dialysis, day care procedure, surgeries, general consultations and diagnostic services. To further extend care outside hospitals, it offers homecare services, ranging from sample collections to preventive health checkups, pediatric vaccinations and ICU at home; pharmacies (primarily driven by in-house OP pharmacies at its hospitals). The company also launched โMedanta Labsโ in January 2023 with establishing 22 collection centres across the region it operates in.
Global Health Limited is one of the largest private multi-specialty tertiary care providers, operating in the Northern and Eastern regions of India. Under the brand โMedantaโ it operates with a network of 5 hospitals in Gurugram, Indore, Ranchi, Lucknow and Patna. Apart from it, it has an upcoming hospital in Noida. GHL offers a comprehensive range of healthcare services across over 30 specialties and super specialties, including heart institute, cancer, neurology, internal medicines, digestives, kidney & urology, orthopedics, liver transplantation and others. As on 31st December 2024, it has a total bed capacity of 3,042 beds with 2,427 beds operational at a group level. The Groupโs flagship hospital at Gurugram is one of the largest hospitals in India with a capacity of ~1,391 beds in a single location. Additionally, to offer a streamlined pathway for patient referrals, it operates 6 multi-specialty clinics with a diverse range of services such as dialysis, day care procedure, surgeries, general consultations and diagnostic services. To further extend care outside hospitals, it offers homecare services, ranging from sample collections to preventive health checkups, pediatric vaccinations and ICU at home; pharmacies (primarily driven by in-house OP pharmacies at its hospitals). The company also launched โMedanta Labsโ in January 2023 with establishing 22 collection centres across the region it operates in.
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Medanta has classified its hospitals into Matured and Developing hospitals. Mature hospitals (operational for over 6 years) include hospitals at Gurugram, Indore and Ranchi. While developing hospitals (operational for less than 6 years) comprise of hospitals at Lucknow and Patna. Under the developing hospital, they launched OutPatient department facility at Patna in 2020, while InPatient department was opened in 2021, with operations commencing during FY22. The rationale behind this was to capture a sizeable demand from Northeast India, particularly from Jharkhand and Nepal. In Q1 FY25, revenue share from the mature and developing hospitals stood at ~73% and 27%, respectively. In Q2 FY25, the same stood at ~71% and 29%, respectively. In Q3 FY25, the same stood at ~67% and ~33%, respectively.
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#SALES #GROWTH 5 Year CAGR 17.8%
In FY24, sales increased by ~21% YoY to โน3,275 cr due to improvements across operational metrices. It witnessed growth in IP and OP volumes by 15% and 18%, respectively at a group level. Other metrics like occupancy rate, occupied bed days and ARPOB improved positively. Revenue from their mature and developing hospitals rose by ~18% and 34% YoY, respectively. Geographically, ~94% of the overall revenue constituted domestic patients, with remaining from the international patients. In 9M FY25, sales grew by ~12% YoY to โน2,761 cr, backed by higher inpatient volumes, supported by rising bed occupied days and strong contribution from the developing units. In Q3 FY25, in revenue terms, both matured (and developing hospitals grew by ~10% YoY, each. The key specialties contributed ~56% to revenue in Q3 FY25. In 9M FY25, a total of ~219 new beds were added to the existing capacity. From a YoY perspective, ~317 beds were added.
In FY24, sales increased by ~21% YoY to โน3,275 cr due to improvements across operational metrices. It witnessed growth in IP and OP volumes by 15% and 18%, respectively at a group level. Other metrics like occupancy rate, occupied bed days and ARPOB improved positively. Revenue from their mature and developing hospitals rose by ~18% and 34% YoY, respectively. Geographically, ~94% of the overall revenue constituted domestic patients, with remaining from the international patients. In 9M FY25, sales grew by ~12% YoY to โน2,761 cr, backed by higher inpatient volumes, supported by rising bed occupied days and strong contribution from the developing units. In Q3 FY25, in revenue terms, both matured (and developing hospitals grew by ~10% YoY, each. The key specialties contributed ~56% to revenue in Q3 FY25. In 9M FY25, a total of ~219 new beds were added to the existing capacity. From a YoY perspective, ~317 beds were added.
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