HEALTHCARE SECTOR

Guys,
Buy CHL if you are planning to invest for long term or possibly medium term with very low risk and a very good growth. It is a solid share comparing others in the sector.

Availability in the market is going down day to day. Foreign ownership is very very low comparing others. Most of the investors are with long term plan. I have also invested heavily for long term atleast 10 years.


ASIR is the best share when comparing the ROE but I am not prepared to invest for the current level at ASIR.

CHL,ASIR, LHCL, AMSL, NHL.... are expected to have a good future.

Very defensive sector.Healthcare.other than Lhcl ,asiri price appreciation is minimum for last 5 years.Durdens (chl) is at the same level for last few years.

CHL is the worthiest share in the health sector but due to lack of availability and the present share holders are not willing to sell like any other shares even though they have met minimum public floation required by the SEC. So the prices are not appreciating like others but when the time has come can see the real value hidden. Also we can see that nearly all of the share holders are not worried about the price appreciation otherwise they would have sold them out.

CHL carries a good value.Following reason could keep the prices at the same level.
The board of directors are not concerned about share holders value.
Their dividend policy.it remains almost same for last couple of years.
No share split or rights issues to enhance the value even though free float is limited.
Basically directors are one of the most stingiest directors in corporate world in sri Lanka.(Tudawe brothers).
That is why no one wants chase the shares and buy it above even at 100.

EC sir please analyse Health sector shares ..And let us to know which one is gud for current market..?

As requested you can refer to the below analysis.
Asiri is the most profitable company among others having ROE in excess of 20%. But they have the highest negative gap in terms of valuations which mean the current prices are too expensive to enter or the share is in heavy demand so that the valuations are expensive.
Nawaloka has the least profitability so that the share price is barely trading above the book value.
But in case of Durdans Hospital I can see a positive value gap which means there are further room for the share price to go up compared to other stocks. Their ROE too looks not bad so my recommendation is if you are looking for an undervalued share in this sector then Durdans is the stock for you. If you are looking for a long term highly aggressive stock in this sector then Asiri is the stock for you.
Hope I explained enough for you. 

	9m	9m	12m	9m	9m
Mn	ASIR	AMSL	LHCL	NHL	CHL
NPAT	1297	315	858	219	367
Market capitalization	30,157	6,864	12,342	4,935	3,170
ROE	23.4%	12.3%	18.1%	7.3%	14.9%
ROME	5.7%	6.1%	9.3%	5.9%	15.4%
Value gap	-17.6%	-6.1%	-8.8%	-1.4%	0.5%

Look at ASIR. Though it is expensive still investors chase behind it. This reflects their confidence on the stock's future.

@EquityChamp wrote:As requested you can refer to the below analysis.
Asiri is the most profitable company among others having ROE in excess of 20%. But they have the highest negative gap in terms of valuations which mean the current prices are too expensive to enter or the share is in heavy demand so that the valuations are expensive.
Nawaloka has the least profitability so that the share price is barely trading above the book value.
But in case of Durdans Hospital I can see a positive value gap which means there are further room for the share price to go up compared to other stocks. Their ROE too looks not bad so my recommendation is if you are looking for an undervalued share in this sector then Durdans is the stock for you. If you are looking for a long term highly aggressive stock in this sector then Asiri is the stock for you.
Hope I explained enough for you. 
   

	9m	9m	12m	9m	9m
Mn	ASIR	AMSL	LHCL	NHL	CHL
NPAT	1297	315	858	219	367
Market capitalization	30,157	6,864	12,342	4,935	3,170
ROE	23.4%	12.3%	18.1%	7.3%	14.9%
ROME	5.7%	6.1%	9.3%	5.9%	15.4%
Value gap	-17.6%	-6.1%	-8.8%	-1.4%	0.5%

Thank you ...Ec sir..Can i know what do u mean by ROME. .?

ROME is return on market value of equity. It reflects how well the company's profitability reflects on its share price. This is a kind of new development for stock analysis. I have published an article on the same. You can search and read it.
Thanks

Thank you EC

Now what do you think on Asiri and Lanka Hospitals? And what will happen with Durdans next?

ASIR.N is the best in the sector also it is expected better results all the time and highest earner in the sector but to me it is too heavily OVERPRICED. Very risky to buy but there have been transaction with high volume but who knows what kind of strategy they use??

LHCL is looking more safer than ASIR comparing the price.

CHL.... is the cheapest and safest share in the health sector. Very very low percentage of foreign investors. They are within the minimum public holding requirements as well. Most of the share holders are not interested to sell the share and it is expected to go zero availability in the CSE very soon if the collection keep on going. There may be a subdivision or capitalisation of reserve in the future but not sure. It looks like a very very good investment for long term because price appreciation is very low due to the very very low volume movement at the same time it can go up very simply not like other shares.

NHL is looking risk to me at the moment but DP is involved now. Anyway it has long way to go.

Guys,
Please keep your eyes open on this sector due to price movement and PER ratio.

PER for AMSL.N is currently above 19. Price can go up but be careful when buying. Very very expensive and very dangerous even if they have better results.

LHCL Q1 PAT - 193 mn (18% growth YoY)
EPS (annualised) - 3.45
ROE - 15% (Q1)
Price - 73.20
PER - 21.2

@EquityChamp wrote:Look at ASIR. Though it is expensive still investors chase behind it. This reflects their confidence on the stock's future.

 ASIR has the highest ROE in the group. That may be reason for trading at a higher P/E ratio now.  I can remember few valuable members (hidden gems) gave some idea about ASIR when it was trading around Rs.20. 

In addition, globally there were demand for health care and food related stocks from the beginning of this year despite market sell-off and volatility. Those are two of the valuable defensive plays.

http://www.investopedia.com/articles/basics/07/earnings-power.asp

Earnings Power Drives Stocks

http://articles.economictimes.idiatimes.com/2015-04-10/news/61017908_1_high-return-roe-stocks

High return on equity and lower PE stocks offer value
 
In the past I had LHCL.  As I had other attractive opportunities I rotated from LHCL to other stocks.
 
LHCL has second highest ROE in the group.

Not sufficient medicines in Most of the hospitals. Are we planning to fast dying ?

AMSL.N and specially ASIR.N giving dividend was unexpected. I really wanted to buy ASIR @20 but I didn't expect them to give dividend this year, ASIR is definitely a 24+ share. and AMSL 14+, Now all hospitals in full gear with Asiri Kandy future is clear. Only issue is whether this is just the dividend

@shihan 93 wrote:AMSL.N and specially ASIR.N giving dividend was unexpected. I really wanted to buy ASIR @20 but I didn't expect them to give dividend this year, ASIR is definitely a 24+ share. and AMSL 14+, Now all hospitals in full gear with Asiri Kandy future is clear. Only issue is whether this is just the dividend

This was Sep 11, When we predict , Most times it happens

@shihan 93 wrote:

@shihan 93 wrote:AMSL.N and specially ASIR.N giving dividend was unexpected. I really wanted to buy ASIR @20 but I didn't expect them to give dividend this year, ASIR is definitely a 24+ share. and AMSL 14+, Now all hospitals in full gear with Asiri Kandy future is clear. Only issue is whether this is just the dividend

This was Sep 11, When we predict , Most times it happens

As my prediction after dividend ASIRi went down, but at 21 ASIRI is the value stock out there. till june 31, Ashok Pathirage had only 371,664 shares, but after that he have added another 35k+ shares, As Q3 results coming soon, you have some window of opportunity to grab at discounted prices

50,000 PCRs to be done by private hospitals coming week

@shihan 93 wrote:50,000 PCRs to be done by private hospitals coming week

As predicted All health shares went up

@shihan 93 wrote:

@shihan 93 wrote:50,000 PCRs to be done by private hospitals coming week

As predicted All health shares went up

But Now stocks moved 20% , don't try to catch now, wait for another opportunity

Lanka Hospital reported exceptional growth in revenue and operational profit 30% and 575% respectively compared to comparative quarter. Further due to Effect on deferred tax due to income tax rate change and Other comprehensive Income boosted the bottom line to Rs. 1 bn mark.

LHCL March quarter result indicating a better result of hospital sector.

NHL December Quarter was 351% higher than the comparative quarter.

There is a higher chance for a better result on hospital sector especially NHL and ASIR