Indian Diagnostic industry is ~USD 9bn; expected to grow at 10% CAGR over next 5years
edelweiss.in/research/secto…
@EdelweissWM @MetroHealthLab @drlalpathlabs #indiandiagnostic #Indianhealthcare #diagnostics #healthcare
edelweiss.in/research/secto…
@EdelweissWM @MetroHealthLab @drlalpathlabs #indiandiagnostic #Indianhealthcare #diagnostics #healthcare
Refferrals still constitute major part in diagnostic sector
National Diagnostics chains outperform the sector: 21% sales CAGR over last ten years #diagnostics #metropolishealthcare #drlalpathlabs
Incremental sales per annum reached to INR 300cr for three listed diagnostic players @MetroHealthLab #Drlalpathlabs #Thyrocare
Sales added with higher margin...which reach to 27-28%
Margin improvement is result of increase in B2C sales contribution and increase in specialized tests contribution
Metropolis commands premium in terms of realisation per patient (~25% higher than peer) and realisation per test (~50% premium to peer) as well as EBITDA per patient (~30% premium) & EBITDA per test (~65% premium to nearest peer)
National diagnostic chains continuously focus on improvement in operating parameters
Competition soften with fall in PE deals from 7 in CY12 to 2 in CY18
M&A increased in sector and COVID-19 will accelerate further
Opportunity for inorganic expansion for large players
Dominant brands/National players in their core region regulate pricing. With easing in PE deal momentum will improve frequency of price hikes - BAD FOR CONSUMER, GOOD FOR INVESTORS
Most diagnostic testings in India is still an out of pocket expenses i.e. 62% of total health expenditure is out of pocket : may health insurance address those in future
National diagnostic players would gain marketshare in coming years, specially post COVID-19 and I believe premium player with wide network will be major beneficiary...
