RHT Health Trust – What really matters in a Stock ( My second buy of the year)

Operating in India | 12 Clinical Establishments, 4 Greenfield Clinical Establishments and 2 Operating Hospitals | Founded in 2011

Second biggest market cap (Listed on SGX), hence comparison will be done with Raffles Medical Group (RMG) – the 1st

1)  IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

  • Price to book ratio : 0.997 ( .3% cheaper than fair value) – RMG is 4 times its fair value
  • Price to earning ratio :  17.423 ( Growing slower than industry average at 53.916)

2)  LEARN ABOUT THEIR NUMBERS

  • Debt To Equity : 24.544 ( RMG is at 4.679)
  • Growth Performance : -not provided-( RMG is at 7.17%)
  • Current Ratio : 1.877 (RMG is at 1.178)
  • Cash flow per share : 0.052 (Paying 0.93)
  • Average management ability ( High dividend growth rate at 29.56% – industry at 7.69% | Positive net income/gross profit margin | overall positive cash flow – High cost in investing – due to its capital intensive business nature)screen-shot-2017-01-09-at-9-48-21-amscreen-shot-2017-01-09-at-9-48-14-am

3) TECHNICAL ANALYSIS

screen-shot-2017-01-09-at-9-59-49-am

Sg.Finace – Max Chart

Current price action has an overall bear(Down) trend, where market is making lower high and lower low. Market has formed a gap area which previously requires a huge demand to push price beyond the area.

screen-shot-2017-01-09-at-9-59-57-am

Sg.Finance – 1 Year chart

Market has a bullish (Long) short term trend, where market is making higher high and higher low. It looks as if market is building momentum (Consolidating) before indicating a direction. If market would to break the gap area, price will have a higher tendency to trend higher and vice versa if it fails.

4) Why am I vested into it?

In order to balance my portfolio, I’ve decided to purchase a more “risky” yet safe stock. A few reasons why I bought it would be the  value (Cheap while having a substantial market cap), High dividend yield and good financial control of asset.

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2 thoughts on “RHT Health Trust – What really matters in a Stock ( My second buy of the year)

  1. Hi,
    Maybe RMG may not be good comparison as RHT primarily holds and manages properties but RMG primarily manages medical services .

    Parkway life reit or first reit would be closer.

    There is this capital gains tax that the Indian government recently introduced this year. Investor relations told me that unitholders will not be affected as these assets existed before the rule. Not. Comprehensive reply .

    I’m not too sure if rht decided to buy hospital assets in India in future and what is the impact then .

    Like

    • Hey! Yea you’re right on the comparison! Thought it would be a wiser a move to compare it based on its listed nature…. but hais.. still got a lot to learn
      Thanks for the guidance 🙂

      hahaha I’d thing I will be taxed in the future but nonetheless its still price below fair value as compared to the 3 (RMG, First, and Parkway) and, its supposed to be a small part of my portfolio…sadly….. my portfolio is still small LOL.

      Like

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