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Company Profile

Established in the year 1996 by A.Velumani a former researcher at the Bhabha Atomic Research Centre, Mumbai; Thyrocare Technologies Limited is an international network of diagnostic and preventive care laboratories in India with its corporate office based in Navi Mumbai, Maharashtra. The business runs approximately around 1,122 outlets and collection points as of 2021, in addition to places in Bangladesh, Nepal and the Middle East. On June 26, 2021, API Holdings, the parent company of Indian e-pharmacy and online healthcare aggregator PharmEasy, subscribed a 66.1% regulatory stake in Thyrocare Technologies Ltd, making it the first publicly traded corporation in India to be acquired by a start-up. The company is having the first laboratory with a preliminary focus on thyroid testing in Mumbai, gave the great potential for thyroid testing in India.

Healthcare Sector Industry in India

lIn terms of both employment and revenue, the healthcare industry has grown to be one of India’s major. Hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment all fall under the category of healthcare. Due to improved services, coverage and rising in spending by both public and private entities, the Indian healthcare industry is expanding quickly.

lThe public and private sectors make up the two main components of India’s healthcare delivery system. The government or public healthcare system, concentrates on establishing primary healthcare centres in rural areas while the bulk of secondary, tertiary and quaternary care facilities are run by the private sector, with a focus on metropolises, tier-I and tier-II cities.

lIndia has a big pool of highly qualified medical personnel, which gives it a competitive advantage. In comparison to its rivals in Asia and the West, India is also cost-competitive. The low cost of healthcare facilities in India has led to an increase in medical tourism in the Nation, drawing individuals from all over the world. 

lThe Indian healthcare industry is anticipated to grow by three times, at a CAGR of 22% between 2016 and 2022, from US$ 110 billion to US$ 372 billion. Indian healthcare infrastructure is anticipated to cost $349.1 billion by FY22. India’s public healthcare spending was 2.1% of GDP in 2021–2022, up from 1.8% in 2020–2021 and 1.3% in 2019–20, according to the Economic Survey of 2022. 

lIn FY22, premiums underwritten by health insurance companies grew to ` US$ 9.21. The health segment has a 33.33% share in the total gross written premiums earned

in the country.

lBetween April 2000-June 2022, FDI inflow for the drugs

and pharmaceuticals sector stood at US$ 19.90 billion, according to the data released by Department for Promotion of Industry and Internal Trade. 

lUnder the Union Budget 2023-24, the Ministry of Health and Family Welfare has been allocated US$ 10.76 billion, an increase of 3.43% compared to US$ 10.4 billion in 2021-22.

lIndia’s healthcare sector is extremely diversified and is full of opportunities in every segment, which includes providers, payers and medical technology. With the

increase in the competition, businesses are looking to explore the latest dynamics and trends which will have a positive

impact on their business. The Government targets to grow

India as a world-wide healthcare centre and is forecasting

to increase public health spending to 2.5% of the country’s GDP by 2025.

Company Perspective and Review

lThe company is debt free and is continuously declaring dividend for the past 5 years.

lReturn on Equity is 11% and Return on Capital Employed is 15% during the FY23.

lMoving Average Convergence Divergence signals upward price momentum. Relative Strength Index shows strength in the market price of the scrip.

lAnalysts gives a BUY recommendation.