The year 2000 marked the incorporation of Thyrocare as one of the leading pan-India diagnostic chains with a presence in more than 2000 cities/towns in India as well as internationally. The services offered are conducting an array of medical diagnostic tests and profiles of tests that helps in early detection and management of disorders and diseases. As of February 2016, the company had a wide network of 1041 authorised service providers comprising 687 Thyrocare Aggregators and 354 Thyrocare Service Providers. They offer 192 tests and 54 profiles of tests to detect a number of disorders, including thyroid disorders, disorders related to growth, metabolism disorders, auto-immunity, diabetes, anemia, cardiovascular disorders, infertility and various infectious diseases.
Operating with a Centralised Processing Laboratory in Mumbai, which processes over 30,000 samples and more than 1 lakh investigations every day, their profiles of tests include 17 profiles of tests administered under 'Aarogyam' brand. Through its wholly owned subsidiary, NHL, it operates a network of molecular imaging centers in Delhi, Mumbai and Hyderabad, focusing on early and effective monitoring of cancer.
Objects of the Issue
- Achieve the benefits of listing of the Equity Shares on BSE and NSE
- Carry out the sale of up to 10,744,708 Equity Shares by the transaction
Issue Detail:
- Issue Open: Apr 27, 2016 - Apr 29, 2016
- Issue Type: Book Building Issue IPO
- 10,744,708 Equity Shares of Rs 10 aggregating up to Rs 479.21 Cr
- OFS of 10,744,708 Equity Shares of face value Rs 10 aggregating up to Rs [.] Cr
- Face Value: Rs 10 Per Equity Share
- Issue Price: Band of Rs. 420 - Rs. 446 Per Equity Share
- Market Lot: 33 Shares per lot
- Minimum Order Quantity: 33 Shares
- Listing At: BSE, NSE
Company Promoters:
The promoters of the company are:
- Dr A. Velumani
- Mr A. Sundararaju
Industry Outlook
Indian Diagonistics Industry which comprises of about Rs. 377 billion as of 2014-15, has been witnessing trmendous growth in the last few years. As per experts it is expected to grow at a CAGR of 16%-18% in the next 3 fiscal years to reach 585-616 billion. The reasons for its increase being primarily attributed to rise in ageing population, awareness for healthy living and interest in good healthcare leading to increase in demand for diagnostic services.
Strength
Quality
Best in the Global
(a)Brands,( b) Instruments,( c)Technologies,( d)Reagents,( e)Procedures,( f)Systems.
System
IT when used ideally to integrate men, machines and methods, it delivers secured, assured, reliable and reproducible solutions even in Diagnostic industry. Analyzers, webservers & barcodes when integrated, it gives a system that is empowered, controlled and monitored end to end.
Reach
With more and more brands using their cost effective backend laboratory, their presence grows in more and more cities, countries and continents. Thyrocare today boasts of processing 3 billion investigations in a year and has a capacity of processing 10 billion in a year
Cost
Working on Value makes a lot of sense when the operations are B2C. When the focus is on B2B, volume makes a great sense to the organisation. Hence, Thyrocare has been working on cost of retail reagents for its services. With fully optimized and highly efficient, seamless automation it ensures that men, material and machines deliver highest level of quality service at affordable (UNBELIEVABLE) costs.
Speed
Laboratory functions round the clock as well as Air cargo functions 24 X 7 and its major business is air cargo driven. Barcoded, Bi-directionally interfaced and web server solutions help in enhancing the speed and allow every laboratory in any continent to operate their machines as if they are present in their vicinity, which helps to generate results and reports in about 5 hours.
For FY15, standalone revenue from operations grew 19% YoY to Rs. 187 crore, with total samples processed rising 30% YoY to 91 lakh. However, EBITDA only rose 6.5% YoY, to Rs. 80.25 crore (42.9% EBITDA margin vis-à-vis 48.1% in FY14), due to a whopping 43% YoY rise in employee cost to Rs.17 crore. Thus, net profit growth contracted to just 5% annually, with net profit coming in at Rs. 48.45 crores, to yield an EPS of Rs. 9.60 for FY15. Since subsidiary NHL is loss making, consolidated PAT for FY15 came in at Rs. 44.44 crores, with EPS of Rs. 8.80.
For 9 months ending 31-12-15, standalone total income is placed at Rs. 175 crores, with EBITDA at Rs. 74.50 crores, resulting in a margin of 42.7%, almost stagnant from FY15, rather a drop of 22 basis points! PAT for 9M FY16 was Rs. 43.60 crores, translating in an annualized EPS of Rs.11 for FY16. As of 31-12-15, company has no debt on its books, while cash and equivalents are Rs. 62 crores.
While its revenue has grown at a CAGR of 16% from Rs. 140 crores in FY13 to Rs. 187 crores in FY15, sadly, EBITDA CAGR has been much lower at 8%, with EBITDA rising from Rs. 69 crores to just Rs. 80 crores during FY13-15, while PAT has actually fallen from Rs. 56.80 crores in FY13 to Rs. 48.45 crores in FY15. Higher personnel cost and depreciation are the culprits for this de-growth in bottom line.
Conclusion : Though the pricing of Thyrocare IPO is not cheap, one can apply for listing gains.
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