Thyrocare is India’s second diagnostics firm to go public in recent months following a successful listing of Dr Lal PathLabs.. This time it’s a disorder detection and management firm Thyrocare Technologies Ltd. The company provides test for various infection diseases and disorder detection management also. The company aims to raise Rs. 451.28 – 479.21 Crore by offering shares at Rs. 420 – Rs. 446 Per Equity Share.
About Company :-
Thyrocare Technologies Ltd established on 28 January 2000 in Mumbai. Thyrocare is India’s one of the leading pan-India diagnostic chains. The firm performs an array of medical diagnostic tests and profiles of tests through which early detection of disease and management of disorders takes place.
As of November 30, 2015, they are offering 192 tests and 54 profiles of tests to detect a number of disorders such as thyroid disorders, growth disorders, metabolism disorders, auto-immunity , diabetes, anaemia and various other infected diseases.
They are present in more than 2,000 cities and towns in India and internationally. As per the latest count, Thyrocare performed 159,350 tests daily. The firm’s laboratories process over 30,000 samples per day as well as more than 1 lakh investigations every day. The firm’s profiles of tests include 17 profiles of tests administered under our “Aarogyam” brand, which provide patients a suite of wellness and preventive health care tests. From their wholly owned subsidiary, NHL, they operate a network of molecular imaging centres in New Delhi, Navi Mumbai and Hyderabad, and mainly focused on monitoring of cancer at early stage in effective manner.
They collect samples through a pan-India network of authorized service providers comprised of TAGs and TSPs, which operate under franchise agreements with them. Since November 30, 2015, they had a network of 1,122 authorized service providers, comprised of 878 TAGs and 244 TSPs spread across 483 cities and 28 states and union territories.
They believe the following business strengths allow them to successfully compete in the diagnostics industry:
- Portfolio of specialized tests with an emphasis on wellness and preventive healthcare;
- Multi-lab model driving volume growth and economies of scale;
- Pan-India collection network supported by logistics capabilities and information technology infrastructure;
- Capital efficiencies in our diagnostic testing business; and
- Experienced senior leadership and management team.
The brands that we offer are listed in the table below:
- Thyrocare :- Diagnostic testing
- Aarogyam :- Wellness and preventive care
- NHL :- Cancer monitoring
- WHATERS :- Water testing
- Sugar Scan :- Testing of blood glucose levels
We can say that, Thyrocare technologies is consistent firm in India depends on their financial performance. As shown in the image below, the company has achieved consistent growth in top line and profits have also increased in each of the last four years except in FY2014. While profit margins of Thyrocare have come down after being in peak in FY2013 and increasing competition, but absolute profits are still very attractive.
As these are results i.e. standalone results, consolidated figures – available only for FY2015 – don’t have much difference. On a consolidated basis, the company earned revenue of INR190.3 crore while its profits stood at INR44.4 crore in FY2015. As the company has been increasing its revenues, it has already posted a topline of INR180.4 crore in the nine months ended December 2015. Similarly, profits jumped to INR 40 crore in the period.
Valuation and Use of IPO funds
The EPS is Rs 10 for Thyrocare as of the earning for FY 16. Based on that, the P/E comes at around 45 which is not very cheap. The only comparable company to this company is Dr Lal Path lab which is almost three times as big and it P/E multiple is around 70.
The issue is entirely an offer-for-sale by PE investor CX Partners (through its subsidiary Agalia Pvt Ltd). CX Partners currently holds 22 per cent in the company and will be selling 19 per cent.
You can find more details about Thyrocare as a company here.
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