NSE: Thyrocare

Thyrocare Technologies Ltd. Logo technologies Ltd

PRICE: INR 1341.15

Thyrocare Technologies Limited is an Indian multinational chain of diagnostic and preventive care
laboratories, headquartered in Navi Mumbai, Maharashtra. The company has a total of 1,122 outlets and
collection centers across India and parts of Nepal, Bangladesh and the Middle East.

Industry Diagnostics Market Cap 69.802B Revenue FY21 INR468.96 Cr

CEO A Velumani P/E Ratio 59.18 Net Profit FY20 INR 119.77Cr
Founded 1996 ROE 26.88% YOY Growth% 44.76%
HQ Navi Mumbai EPS 22.66 Profit margin 25.25%

Revenue INR in Cr Net Profit Margin Return on Assets

500 468.96
25.25% 15.68% 2021 22.69%
394.59
400 367.42
326.32 2020 17.92%
288.79
300
2019 19.52%
200 28.94%
19.77% 2018 19.78%
100
2017 10.50%
0 25.71%
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
Return on Assets

Chart Title 4 News and Facts Competitors

60.00%

50.00% 51.49% • PharmEasy to acquire 66.1%

40.00%
37.97%
stake in Thyrocare for
30.00% Rs4,546cr from Dr A.
20.00%
23.36% Velumani.
10.00%
13.57% • Nalanda Equity India Fund
6.98%
2.77%
2.45% 1.02% 0.51%
3.81%
2.25% offloaded 38,21,394 equity
0.00%
-2.74% -1.04%-0.61%
-10.00%
-4.39% shares, or its entire 7.23%
-20.00%
-16.87% stake, of Thyrocare
Technologies on 28 June 2021
-30.00%

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 Company’s performance

• On a standalone basis, Revenue from Operations has increased to Rs. 474.27

crores in the current year from Rs. 401.06 crores in previous year, registering
an increase of 18.25%. Profit before Exceptional Items was Rs. 161.28 crores
in the current year as against Rs. 156.33 crores in previous year, registering an
increase of 3.17%.
• On a consolidated basis, Revenue from Operations has increased to Rs. 494.62
crores in the current year from Rs. 434.26 crores in previous year, registering
an increase of 13.90%. Profit before Exceptional Items was Rs. 152.54 crores
in the current year as against Rs. 146.48 crores in previous year, registering an
increase of 4.13%.

Revenue from Operations INR in Cr

500 468.96
394.59
400 367.42
326.32
300 288.79

200

100

0
2017 2018 2019 2020 2021

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 Industry Structure

• The industry is dominated by small and regional unorganized diagnostic

laboratories, which controls more than 70% of the total diagnostic market.
• Before pandemic, due to significant latent demand emerging on the back of
improving economic conditions in the country and a rapidly emerging urban
population, though the significant chunk is getting converted from
unorganized to organized.
• Since there are no entry barriers, more and more unorganized players were
entering into the space and there seems no significant shift in the share of
organized players in the total diagnostic market.
• However, COVID-19 has deeply impacted the landscape of Indian Diagnostics.
There is increased reliance on organized players since local unorganized
players are facing operational challenges.
• There is an increased salience of reports from organized players given higher
degree of trust in established brand with high-tech and accredited
laboratories.
• Simultaneously increased awareness about the health in small and medium
cities is likely to ensure growth for the diagnostic industry as a whole.

Net Profit margin

15.68%
25.25%
2017
2018
28.94% 2019
19.77% 2020
2021

25.71%

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 Strategies for growth

The following are the growth strategies:

• Four COVID processing laboratories, Mumbai, Delhi, Bangalore and
Kolkata with capacity of 25,000 tests a day for RT PCR.
• Four Zonal processing laboratories, Mumbai, Delhi, Bangalore and
Kolkata for handling growing volumes of higher end tests regionally.
• To add 10 more RPL for existing 15 RPL to improve the reach and go
closer to customers for a better Turnaround Time.
• Focus and aggressively add to the network of 500 committed
franchisees to 2000 in this FY
• Work with healthcare start-ups, online pharmacies, which got tail
winds due to COVID and amplify the current 2000 orders per day to
5000 orders per day in our home service segment.

Movement of Shares
60.00%
50.00% 51.49%
40.00% 37.97%
30.00%
20.00% 23.36%
13.57%
10.00%
6.98% 3.81%
0.00% 2.77%
2.45% 1.02% 0.51% 2.25%
-2.74% -1.04% -0.61%
-4.39%
Jun-20

Aug-20

Nov-20

Jun-21
Oct-20

Dec-20
May-20

May-21
Apr-20

Sep-20

Feb-21
Mar-21
Apr-21
Jul-20

Jan-21

Jul-21
-10.00%
-20.00% -16.87%

-30.00%

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 Opportunities & Strengths

Opportunities:
• Ability to maintain operations during Covid-19.
• Continue to grow wellness offerings and expand product offering.
• Increased awareness among all sections of the society, including from in-
bound and out-bound travelers, is likely to enhance the demand for the
services and products of the Company.
• Expand the service platform by developing new channels that leverage the
strength of company’s brand and network.

Strengths:
• Portfolio of specialized tests with an emphasis on wellness and preventive
healthcare
• Multi-lab model driving volume growth and economies of scale
• Pan-India collection network supported by logistics capabilities and
information technology infrastructure
• Capital efficiencies in our diagnostic testing business.
• Experienced senior leadership and management team.

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 References

References:
• Based on Facts and Figures obtained from Tata Motors Limited Annual Report
2020-2021
https://investor.thyrocare.com/wp-content/uploads/2021/06/Annual-Report-2020-
21-2.pdf
• Data obtained from moneycontrol.com
https://www.moneycontrol.com/financials/thyrocaretechnologies/consolidated-
profit-lossVI/TT16#TT16
Disclosure:
• Data Regarding Price of Stock is subject to change as per daily trading on NSE or
BSE.
• All Figures and Facts are based on Company Annual Reports for the FY 2020- FY
2021

Editor:
Bommareddy Greeshma, IIRM(Institute of Insurance and Risk Management)
Mentor: Sreehari Chintamani, Department of Financial Studies, DU

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