Daily BriefsIndia

India: Zomato, Max Healthcare Institute and more

In today’s briefing:

  • Zomato Blinkit Deal: Stains Get More Murky
  • Max Healthcare (MAXHEALTH IN): 4QFY22 Review- Continued Growth Momentum; Better Profitability

Zomato Blinkit Deal: Stains Get More Murky

By Nitin Mangal

  • Zomato (ZOMATO IN) ‘s announcement to acquire Blinkit (BCPL) for all-stock deal worth INR 44.5 bn has rattled the market price of the stock in the trading sessions that followed.
  • While the management focuses on the cost synergies and the bigger picture, the acquisition has left several doubts, including the valuation and cash burning nature of Blinkit.
  • More importantly, it is the corporate governance that should be looked at, especially since this is an indirect RPT, as mentioned in our earlier report Zomato’s Investments Game: Stain on Governance.

Max Healthcare (MAXHEALTH IN): 4QFY22 Review- Continued Growth Momentum; Better Profitability

By Tina Banerjee

  • Max Healthcare Institute (MAXHEALT IN) reported Q4FY22 results in-line with expectations, with 12% revenue and 58% net profit growth. The EBITDA margin improved 70 basis points to 24.8% during Q4FY22.
  • Despite the Omicron, the average occupancy for the quarter stood at 68%, partly fueled by the international medical tourism bouncing back to ~90% of the pre-covid levels in March 2022.
  • The company plans to add over 2,800 beds in the next five years. For context, it has current bed capacity of 3,400. Capex will be funded through internal accrual.

Before it’s here, it’s on Smartkarma