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Please refer to important disclosures at the end of this report
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Thyrocare Technologies primarily operates in healthcare segment and is
primarily involved in providing quality diagnostic services at affordable costs
to patients, laboratories and hospitals in India. The company is more into
B2B business where it provides it service to hospitals or corporations directly.
The company has showed impressive business performance in the past. Its 5
years revenue CAGR was 19.8%. Due to its business model its operating cost
is lower than its peers. Therefore, operating profit margin of the company is
around 40% usually. Its 5 years PAT CAGR also is registered at 14.8%. The
company’s wellness package product – Aarogyam has also grown its value,
which now contributes 52% to revenue. Thyrocare has entered into a 4 year
PPP with Brihanmumbai Municipal Corporation (BMC) earlier this year in a
contract worth Rs. 520 Mn to provide laboratory investigative services for
basic and advanced pathology tests. The operations under the contract have
officially begun this quarter. Further, it launched 2 new products in 2
quarters of FY20. These products named - Non Invasive Prenatal Testing and
Tuberculosis Testing are charged at a mere 50% of market price to give
tough competition to its peers.
On the financial health front, the company looks sound with zero debt in its
balance sheet. The cash flow also remains steady. Currently, the stock trades
at 28.5x of its earnings and delivers 32.4% RoCE. The company also pays
heavy dividends of ~90%. With concrete business and attractive returns, we
recommend BUY on the stock.
BUY
CMP `572
52 Week High / Low
604/407
Avg. Daily Volume
2,721
Healthcare
Market Cap (` cr)
3,022
10
BSE Sensex
40,445
Nifty
11,922
Face Value (`)
Reuters Code
THYO BO
THYROCAR IN
0.4
Jaikishan Parmar
022 – 3935 7600 Ext: 6810
jaikishan.parmar@angelbroking.com
Thyrocare Technologies Ltd
Others | Healthcare
Dec 06, 2019
2
Thyrocare Technologies| Healthcare
2
Research Team Tel: 022 - 39357600 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Thyrocare Technologies
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)