Incred's Aditya Khemka Favours These Segments In The Healthcare Sector
Diagnostic startups have sensitised consumers, which has broadened the market, he said.
InCred Financial Services' Aditya Khemka said that he continues to remain constructive on pharmaceutical companies focused on India and other emerging markets as well as the hospital business.
"Emerging markets are also branded generic markets," Khemka, fund manager at InCred Financial Services, told BQ Prime's Niraj Shah.
The diagnostic business in now witnessing a "return to normalcy" as online players have started raising prices. This has happened as the cost of funds have gone up and startup investors are now looking at revenue and cash flow of the business, he said.
These diagnostic startups have sensitised the consumers which has broadened the market, he said, adding that it is now a "double digit" growth market.
"We are also bullish on certain Active Pharmaceutical Ingredient players," he said.
Underscoring the investment opportunities in the hospital business, Khemka said that it is a business where the "bargaining power of the services provider is far superior than the service consumer".
According to him, the business model will "last for the ages, (is) extremely profitable, and cashflow rich business if managed properly".
Currently, the hospital business is doctor-driven as they are the lead generators, Khemka said. "These hospitals tell you that a significant part of their income goes to compensating these doctors because they are the lead generators, they perform the surgery and even take care of the patient post-discharge also."
However, conglomerate hospitals are moving away from depending on certain "star doctors" and are branding the hospital instead, he said.
While the change may take decades, the bargaining power will be in the hands of the hospital instead of the doctors, which will "step up the profits", he said.
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