Kovai Medical Centre - Rs.59.00

Incorporated in 1985 and promoted by Dr. N.G. Palaniswamy, Kovai Medical Centre and Hospital Ltd (KMCHL) is a Rs.50 cr., multi-disciplinary, super-speciality corporate hospital located on the Avanashi Road in the Coimbatore-Chennai highway. It is rated one of the best medical centres in the world equipped with the most modern equipments like CT scanner, Angiography equipment with DSA, Operating Microscope, Mammography, C-arm, Color Doppler etc. Super-speciality procedures like Coronary Bypass surgeries, Coronary Angioplasty, Stent Implantation, Laproscopic & Vascular Surgeries, Hip & Knee replacements, Kidney transplants and complex Neuro surgeries are regularly done at the hospital. KMCHL is recognized as one of the best Trauma care centres in the country and has a 24 hours Emergency Department with ambulance services, CT scan, a well-equipped operation theatre with C-arm, Monitoring equipment, 30 bed sophisticated Intensive care unit with well-organized physiotherapy and occupational therapy departments for rehabilitation.

Apart from the main hospital, it has two other full-fledged satellite medical centres - one in Coimbatore itself with 10 beds and the other at Erode with 50 beds. There are over 30 medical departments and 11 operation theatres at the hospital. Nearly 500 outpatients & inpatients are treated everyday with 25 major and minor surgeries performed daily. In order to cater to the increased patient in flow, KCMHL is expanding rapidly and its West Wing project at the main centre has been successfully completed. With this, its total bed capacity has increased substantially. A Neonatal ICU has also been established at the Erode facility. Last fiscal, the hospital added new medical equipments to the tune of Rs.1.2 cr., like the latest ADC Digitiser, Pulsar 3 Chip Camera, Neuro Microdrill, Pacemaker, Therapeutic Drug Analyser etc. to its armoury of medical equipments in order to deliver healthcare on international standards. It has plans to procure 64 slice cardiac CT, state-of-the-art monitoring equipment, Linear accelerator and a Gamma camera in the near future. KCMHL can boast of conducting around 413 Open Heart Surgeries last year with incredible success rate of 99%. Its Cardiology is widely acclaimed and continues to attract large number of patients from the neighbouring states.

Besides, medical tourism is growing phenomenally from a mere 5000 patients 5 years ago to 1,00,000 today and still rising. Being in the promising healthcare sector, KCMHL is estimated to end FY06 with total revenue of Rs.50 cr. and NP of Rs.6 cr. This may rise to Rs.70 cr. and Rs.7.50 cr. respectively for FY07. This works out to an EPS of Rs.5 and Rs.7 on its current equity of Rs.10.94 cr. As it is trading fairly cheap compared to its peer, the share price has the potential to appreciate 60% in 12~15 months.