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RATING

RECOMMENDATION

Strong Buy

Business Type

Dominant Leader

  • MEDI ASSIST HEALTHCARE SERVICES LTD Unlisted Shares Essentials

ISIN

U74900KA2000PLC027229

Face Value

₹5.00

Total Share

6,88,59,212

Total Income

₹330.40 Cr

Profile After Tax

₹34.60 Cr

Promoter Holding

₹77.10 %

EPS

₹5.17

Sector

Financials

Sub-sector

Insurance

Cashflow - Operations

₹18.70 Cr

Cashflow - Financing

-₹11.80 Cr

MEDI ASSIST HEALTHCARE SERVICES LTD Growth

Compounded Sales Growth

  • 17.50%

    1 Year

  • 16.94%

    2 Year

Pro Only

Compounded Profit Growth

  • 32.06%

    1 Year

  • -7.46%

    2 Year

Pro Only

Return On Equity

  • 15.92%

    1 Year

  • 12.26%

    2 Year

Pro Only

About MEDI ASSIST HEALTHCARE SERVICES LTD

 Medi Assist Healthcare Services Ltd. is India’s leading Healthtech and InsurTech company focused on administering health benefits across employers, retail members and public health schemes.

 They are India’s largest health benefits administrator in terms of revenues and premium serviced for health insurance policies for the financial years 2018, 2019 and 2020.

  Satish Gidugu is the CEO of the Medi Assist Healthcare Services Ltd.

 The company has developed a pan-India healthcare provider network, which comprises over 11,000 hospitals across 722 cities and towns. During the FY 2020, they settled 37.7 Lakh claims worth INR 7,899 Cr.

 The company earned a total income of INR 330 Cr. and a profit after tax of 34 Cr. for FY 20.

  • MEDI ASSIST HEALTHCARE SERVICES LTD Subsidiaries

1.     Mandala Wellness Private Limited (“Mandala”) 

2.     Phasorz Technologies Private Limited (“Phasorz”) 

3.     Buddhimed Technologies Private Limited (“Buddhimed”)


  • MEDI ASSIST HEALTHCARE SERVICES LTD Revenue Segmentation

  • Motor
  • Health
  • Fire
  • Personal Assets
  • Marine
  • Others
  • MEDI ASSIST HEALTHCARE SERVICES LTD Product & Services

·      Member Benefits Platform

Member benefits platform is a secure environment that allows members to review their coverage, download documents like benefit schedule and member guide, and gives them access to the provider finder and online claim submission process.

·      Outpatient Benefits Platform

Med-Max is a platform for automated, affordable, and accessible outpatient medical benefits

·      Payer Platforms

Med-Insur partners with payers to help accelerate their health insurance innovation journey. The product offers an end-to-end core administration platform for small and large health plans to modernize their systems at scale and introduce new products quickly.

·      Claims Management Platform

Med-Claim simplifies the claims processes for customers, employees, agents and third parties with an innovative solution to address a common industry problem improving claims service while reducing costs.

·      Healthcare BI/Analytics

Med-Pi

·      Identifies factors and trends that drive losses.

·      Analyze historical and current claims data to ensure that providers are charging for the proper treatments.

·      Improve investment by using payer data-backed evidence to demonstrate and defend the success of a program or strategy

  • MEDI ASSIST HEALTHCARE SERVICES LTD Assets

· To Policy holders

- Onboarding

-Benefit administration

-Hospitalization concierge

-Outpatient benefits

-Tech Integration

· To Insurance Companies

- Claim management

- Access to provider and network rates

· To Hospitals

- Contract rate, discounts and packages

- Electronic pre-authorization

- Cashless processing

- Paperless lifecycle (electronic)

  • MEDI ASSIST HEALTHCARE SERVICES LTD Industry Overview

Industry Statistics

· The following are some of the major investments and developments in the Indian insurance sector.

·Companies are trying to leverage strategic partnership to offer various services as follows:

·In February 2021, Edelweiss General Insurance signed a partnership with Okinawa Autotech Pvt Ltd. to leverage the extensive dealer network of Okinawa (350 dealerships as of Feb. 2021) across India to provide easy, end-to-end, digital-driven solutions to ensure superior customer experience.

·In February 2021, Star Health Insurance partnered with PhonePe to offer digital health insurance on PhonePe, through its Arogya Sanjeevani policy.

·In February 2021, Future Generali India Insurance launched ‘Health Super Saver’ insurance plan, with an 80% premium discount.

·In February 2021, Bharti AXA General Insurance launched its ‘Health AdvantEDGE’ health insurance scheme to provide holistic cover against accelerating costs associated with medical requirements and other healthcare facilities.

                 

Government Initiatives

·The Government of India has taken number of initiatives to boost the insurance industry. Some of them are as follows:

·Union Budget 2021 increased FDI limit in insurance from 49% to 74%. India's Insurance Regulatory and Development Authority (IRDAI) has announced the issuance, through Digilocker, of digital insurance policies by insurance firms.

·Under the Union Budget 2021, Finance Minister Ms. Nirmala Sitharaman announced that the initial public offering (IPO) of LIC will be implemented in FY22, as part of the consolidation in the banking and insurance sector. Though no formal market valuation has been undertaken, LIC’s IPO has the potential to raise Rs. 1 lakh crore (US$ 13.62 billion).

·In February 2021, the Finance Ministry announced to infuse INR 3,000 Cr. (US$ 413.13 million) into state-owned general insurance companies to improve the overall financial health of companies.

·Under Union Budget 2021, fund of INR 16,000 Cr. (US$ 2.20 billion) has been allocated for crop insurance scheme

MEDI ASSIST HEALTHCARE SERVICES LTD Awards & Achievements

·         Business Leader of the Year Award by World Leadership Awards, 2021
·         India’s Best TPA by Asia’s Insurance Awards, 2020
·         Top 14 Healthiest Workplaces in India by Arogya World
·         Best HR strategy in line with Business by Karnataka Best Employer Brand Awards, 2020
·         Dream Companies to Work For by Karnataka Best Employer Brand Awards, 2020

·         Certificate of Appreciation for Exemplary Performance

·         FICCI Healthcare Excellence Award, 2019

·         Tatva Annual Awards by ICICI Prudential for Best Service Provider- Tele Underwriting, 2018

·         CIO 200 Change Agents, 2017
·         CIO 100 Award – Oscar of the IT Industry - Information Mastermind
·         Pahal Award by Tata Consultancy Services

·         Gold Medal and "Skoch Award for Excellence" for RGJAY scheme – Maharashtra

MEDI ASSIST HEALTHCARE SERVICES LTD Strengths

·Total income has been rising at 2-year CAGR of 17%

· The company is India’s largest health benefits administrator in terms of revenues and premium serviced for health insurance policies for the financial years 2018, 2019 and 2020.

· The company has developed a pan-India healthcare provider network, which comprises over 11,000 hospitals across 722 cities and towns. During the FY 2020, they settled 37.7 Lakh claims worth INR 7,899 Cr.

·In FY 20, They serviced over 7,800 corporate accounts, managed INR 6,243 Cr. of corporate premium representing 24% of the overall corporate health insurance market in India and 36% of the corporate health insurance market serviced by health benefits administrators.

·They managed INR 7,829 Cr. of health insurance premiums for the financial year 2020 and had market shares of 17% of the private health insurance market and 29% of the private health insurance market serviced by health benefits administrators in India, based on premium under management for the financial year 2020

·The company has long-term relationships with large corporates and insurance companies.

·The technology deployed by the company has so far been able to achieve a success rate of 17% in the detection of fraudulent claims during the first nine months of FY21 which resulted in savings of close to ₹ 86 crore for insurers.

MEDI ASSIST HEALTHCARE SERVICES LTD Shortcomings

The company is dependent on a limited number of insurance companies for a significant portion of their revenues. For the FY 2020, their five largest insurance companies based on premium under management contributed 65% of their revenue from operations.

The company is dependent on corporate accounts in certain industries for a significant portion of their revenues from operations. For FY 2020, of the total premiums serviced attributable to their 50 largest corporate accounts, corporate accounts in the IT/ITES 62%, and corporate accounts in the BFSI sector contributed 18%.

 The company’s total expenditure has been increasing at 2-year CAGR of 23%.

MEDI ASSIST HEALTHCARE SERVICES LTD Opportunities

Rising income levels, greater health awareness, increased occurrence of lifestyle diseases and improved access to insurance are key drivers contributing to the growth of healthcare market in India. Compared to other developing nations, India’s per capita healthcare expenditure (USD 73 in 2018) is on the lower side, which is expected to gain momentum with increasing public and private health expenditure along with rising enrolment in healthcare insurance.

Over the last four to five years, the out-of-pocket healthcare expenditure as a percentage of current healthcare expenditure has shown a decreasing trend and with increasing health insurance penetration, it is expected to reduce further over the next five years

MEDI ASSIST HEALTHCARE SERVICES LTD Threats

Their business depends on their ability to effectively manage and expand their network of healthcare providers. Their inability to ensure significant volume of business for such providers may adversely impact their ability to maintain preferential pricing arrangements.

Their dependence on few clients exposes them to risks associated with their client’s internal management, financial condition an creditworthiness, and major events affecting these clients.

              ●  The biggest risk that Medi Assist faces is competition. While the industry is crowded with 23 players, a small number own the bulk of the market. As of                          FY20, there were only four players which generated a revenue of more than ₹ 100 crores, while the remaining six generated revenues in the range of ₹                         45-88 crore. This opens up the possibility of mergers and/or acquisitions
MEDI ASSIST HEALTHCARE SERVICES LTD Rating

  • RECOMMENDATION

    Strong Buy

  • MEDI ASSIST HEALTHCARE SERVICES LTD Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

Registered Date

07/06/2000

Stock Exchange Ticker

MEDIHEALTH

Reg Office: Tower D, 4th Floor, IBC Knowledge Park, 4/1 Bannerghatta Road, Bangalore, Karnataka - 560029

Website: http://www.mediassist.in