Deepak Shenoy on his healthcare bet & Kotak Bank developments

economictimes.indiatimes.com:

Deepak Shenoy, Founder, Capital Mind, says “in the near term, Narayana Healthcare stock prices have gone up and so there may be some corrections. But longer term, it should be valued at much higher than it is as the Cayman Islands capex comes through and as some of the expansion within India also takes place. I do not believe they are too expensive.

I just believe that the growth story is ahead of them. ”Do you have positions in healthcare and I am specifically talking about hospitals because on Monday morning, there was this note from Macquarie. They have initiated with an underperform in Apollo and Max saying that the valuations are expensive. There is a regulatory overhang as well. How are you looking at the sector?We do have a position in Narayana Hrudayalaya which is Narayana Healthcare.

Apart from what their India journey is, they also have a hospital in the Cayman Islands and it is early days yet but they are setting up more capex there. The realisations in Cayman are actually something of the order of 8x or 9x what they can get in India in terms of revenues. Perhaps in terms of EBITDA also, the multiples are quite high there and given the cost differences between that and the US, they are in the same time zone as the US, you get a substantially cheaper surgery and inpatient cost compared to anything in the mainland US which is one of the factors that might lead to medical tourism in the same time zone at a relatively lower cost than people coming all the way to India.