Valuation for Hospital Industry

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| 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…show more content…
Life style ailments estimated to account for 74% of all deaths by 2030 (currently account for 64% of deaths). This disease profile means that people will need healthcare facilities and the demand for them is going to increase substantially in future years. (Source: CRISIL) Rising Health Insurance in India 14% CAGR According to the World Health Organization (WHO), 32% of Indian healthcare spending came from government sources in 2013, up from 26% in 2002. Of the remaining private expenditure, around 86% was categorized as out-of pocket, down only marginally from 92% in 2000. Currently less than 15% of Indian population is insured for health in India. Increase in insurance penetration will drive demand for high quality healthcare services as people shift from out of pocket expenditure to insurance companies paying the bills for healthcare. Source: IRDA, IBEF (India brand equity foundation) Rising Medical Tourism India offers high quality healthcare services at par with international standards at substantially lower prices which is a strong driver of medical tourism. Cost of surgery in India is nearly (1/10)th of the cost in developed countries Source: CRISIL Favorable government policies The Indian government is also providing incentives to organizations who are
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