During last two Diwalis we have discussed two stocks that supports two different mega trends. This year also let us discuss one such stock , that I believe will lead in the forefront of an emerging mega trend .
Ageing is a reality and nobody can escape from this . Nowadays
rhythm of life changed a lot and everyone is running behind something that we
can’t even define. In our society, even if people making more than enough money, lot of people facing the issue of finding enough time to care their parents.
This is where the potential of Senior Care business lies. The senior care
market is still at a nascent stage India. As per a 2019 report by consultancy
firm McKinsey ,17% of the seniors in India are living alone and I believe this
number will increase drastically going forward considering the changing socio-economic
situation, increase in the number of nuclear families , improving
life expectancy that results in increasing senior population in the
country etc. Migration of younger generation to foreign countries and unwillingness of their parents to follow the same adding fuel to the loneliness of elders in these days. All these are increasing the business potential of senior care business here . As per Industry analysis, “out of
the 20,000 senior living units in India, about 55% are operational,
while the rest are at various stages of construction. The demand – pegged at
about 240,000 units – is almost 12 times the available capacity” . On the basis
of this background let us look into the only listed company operating in this
sector – MAX INDIA – through its subsidiary ANTARA .
ABOUT THE COMPANY
Antara Senior living is offering independent Residences for seniors. First Senior residential community of this division started functioning in a 14 Acre facility at Dehradun with 180 apartments in 2020. Its second facility is under construction at Noida with 340 apartments that is expected to ready for possession by 2025.As per latest update ,Company already sold out 300 units out of 340.
Under the Assisted care division ,it operates Care Homes,
Care at Home, MedCare and Memory care
homes .This division cater to seniors over the age of 55, who need more
frequent interventions in their daily
lives due to medical or age-related issues. I strongly believe there is immense
scope for these verticals due to more than one reasons like the increase in seniors who are attaining an age where they are in
dire need of any type of home care due to increasing life expectancy .
Care homes are specialized residential facilities meant for short- and
long-term care, pre & post-operative care and memory care for seniors.
These assisted living facilities provide primary health care and emergency
response services.
Care at home providing personalised care and attention under the
guidance and supervision of reputed clinicians.
A team of highly trained professionals provides care in the comfort of elder’s
home itself Instead of
taking the sick and elderly people out for their homes for meeting appointments
and treatment. This is bringing the much needed care and services to the home
which is more convenient both for elders
and those who are responsible to provide care to them. In addition to the above
it is a fact that senior home care is a rather affordable route for giving
people the help that they need compared with treating them in a hospital. This
division’s service includes diagnostics, nursing care ,
physiotherapy ..etc
MedCare division providing a
range of medical products and equipments on rent/ sale for the recovery
and well-being of elderly people .
Under the Memory Care homes
division Antara takes care of Dementia patients and assists them in carrying
out their everyday tasks. Recently company
opened its first dedicated residential Memory Care Home in Gurugram for
Dementia patients. Max now planning to add 35-40 more care homes/ memory care homes with a bed capacity of approximately 2000 .
This is the brief business
profile of the company. Since more details are available in company’s website,
I am not going in-depth. ( Link of Investor presentation and latest Conference call provided at the bottom which will help you to understand more about the Industry and specific to the company )
It is a fact that few other
business groups are keenly looking to tap the opportunities in this sector
.But I strongly believe , MAX group is
one of the most eligible business group to run
such a business because of their experience in running hospital/medical
business for decades. In addition to this, company having a treasury Corpus of around Rs.300 Cr
(after recent buy back) and other monetizable assets of worth Rs 160 crore to
fuel its growth going forward and its current market cap is even below the
combined figure of these liquid resources. Promoters didn't participate in the just concluded buy back ,hence their stake in the company increased from 40 % to above 51% .
Conclusion
Once again wishing a Happy Diwali to all my dear friends ...
For more details and Reports , go through the following links.
Antara Company Website Link HERE
Antara Senior living Apartment Video Tour HERE
Max India Investor presentation HERE
Max India Q1 FY 2022-23 Conference call Audio link HERE
Article on Senior Care business LINK1 , LINK2
Discl:
P Above note is prepared only for educational purpose .Part of data used in the above note taken from publicly available sources and credit of the same goes to the original owner . Few sentences are copy pasted without any editing . Personally holding shares of Max India , hence views expressed here may be biased , do own due diligence before taking any investment decision.