Valuation for Hospital Industry

In: Business and Management

Submitted By AM02
Words 5097
Pages 21
| Valuation of Companies in the Hospital Industry in India | | | September, 2015 | Group 9 – Section B | | Group Members * Abhijnan Dasgupta (14P181) * Aditya Thangeda (14P183) * Apurba Mukherjee (14P189) * Nikhil Sharma (14P210) * Supreet S (14P232) |

Table of Contents 1 Overview of Hospital Industry in India 2 1.1 Introduction 2 1.2 Market Size 2 1.3 Growth drivers for healthcare industry 3 1.3.1 Rising GDP Per Capita 3 1.3.2 Favourable Demographics 4 1.3.3 Disease profile 4 1.3.4 Rising Health Insurance in India 4 1.3.5 Rising Medical Tourism 5 1.3.6 Favorable government policies 5 2 Valuation of Companies 6 2.1 Apollo Hospital 6 2.1.1 Key Stock Statistics and Shareholding Pattern 6 2.1.2 Financials of the Company 6 2.1.3 Assumptions for Valuation 8 2.1.4 WACC Calculation 8 2.1.5 EBIT Calculation 10 2.1.6 Projected Cash Flows 10 2.1.7 Conclusion 11 2.1.8 Limitations 11

Overview of Hospital Industry in India
Introduction
Healthcare has become one of India's largest sectors - both in terms of revenue andemployment. The industry comprises hospitals, medical devices, clinical trials,outsourcing, telemedicine, medical tourism, health insurance and medicalequipment.
The Indian healthcare delivery system is categorised into two major components -public and private. * Public Healthcare System: The Government, i.e. public healthcare system comprises limited secondary and tertiary care institutions in key cities and focuses on providing basichealthcare facilities in the form of primary healthcare centers (PHCs) in rural areas. * Private Healthcare System: The private sector provides majority of secondary, tertiary and quaternary careinstitutions with a major concentration in metros, tier I and tier II cities.
Market Size
According to estimates of IBEF, the overall Indian health care market today…...

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