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Revolutionising Diagnostics: A Deep Dive into healthcare company

Thyrocare Technologies is a debt-free company engaged in the healthcare industry, delivering excellent diagnostic services at reasonable prices to patients, laboratories, and hospitals in India.

Current Market price at the time of publishing this report-: 1079 Rs

Dr. A. Velumani, a former scientist at Mumbai’s Bhabha Atomic Research Centre, founded Thyrocare in 1996. (BARC). Its first laboratory was established in Byculla, Mumbai, with a focus on thyroid tests. It now claims to be the country’s largest diagnostics supplier in terms of volume, with over 110 million tests completed each year. The diagnostics chain has a network of 3,330+ collecting centres in over 2,000 locations across India. The organisation employs a multi-lab approach across the nation, with a massive central processing lab, two zonal processing laboratories, and 13 regional processing labs.

About / Business

Incorporated in the year 2000 , Thyrocare technologies is one of the largest pan-India diagnostic chains, offering a wide range of medical diagnostic tests and test profiles focused on the early diagnosis and management of illnesses and diseases. As of March 31, 2021, the firm offers 279 tests and 79 test profiles to diagnose a variety of conditions, including as thyroid disorders, growth disorders, metabolic disorders, auto-immunity, diabetes, anaemia, cardiovascular disorders, infertility, and numerous viral diseases. The company’s test profiles comprise 51 test profiles provided under its renowned ‘Aarogyam’ brand, which provides patients with a suite of wellness and preventative health care tests.

The company is a forerunner in the private sector, providing a comprehensive variety of laboratory services across the country. Because of its quarter-century track record, the Indian Council for Medical Research has chosen it as one of the top private sector players to accept referrals from governments and civic organisations for Covid-19 testing at its fully automated testing facility in Navi Mumbai. Thyrocare remains MCGM’s primary COVID testing laboratory for the isolation facilities at Seven Hills Hospital, Sion Hospital, and the NESCO Jumbo isolation facility. A diagnostic laboratory that had not tested a single swab sample until February 2020 now has capability to handle and report on over 50000 swab samples dispersed over three specialised COVID testing facilities.

Thyrocare has handled over a million samples in less than a year, with exceptional turnaround speed, reporting accuracy, and compliance.

Thyrocare offers a network of molecular imaging facilities focusing on early and effective cancer surveillance through its wholly owned subsidiary, Nueclear Healthcare Limited, in New Delhi, Navi Mumbai, Hyderabad, Central Mumbai, Western Mumbai, Nashik, Aurangabad, and Bangalore.

The company primarily operates its testing services through a fully automated Centralised Processing Laboratory (the CPL) and has expanded its operations to include a network of Regional Processing Laboratories (RPLs).

CPL, which is based in Navi Mumbai, is outfitted with major worldwide and Indian healthcare firms’ automated systems, diagnostic testing devices, and procedures. The CPL is entirely automated and is powered by a barcoded and bi-directionally interfaced system as well as a Laboratory information system. The CPL satisfies worldwide quality requirements and has obtained global accreditations from the College of American Pathologists (CAP), the National Accreditation Board for Testing and Calibration Laboratories (NABL), and the International Organization for Standardization (ISO). Thyrocare began establishing RPLs in 2014 and presently operates 13 RPLs, one in each of New Delhi, Coimbatore, Hyderabad, Kolkata, Bangalore, Bhopal, Mumbai, Patna, Pune, Bhubaneshwar, Cochin, Lucknow, and Amritsar, that process samples obtained from their respective regions.

In 2021, Thyrocare began establishing Zonal Processing Laboratories (ZPLs) to ensure that these ZPLs can effectively operate as COVID-RTPCR testing laboratories in their respective regions while also performing certain advanced tests that are currently managed from the centralised processing laboratory. It now runs two ZPLs, one in Delhi and one in Bangalore, both of which process COVID-RTPCR samples and are NABL-accredited. It is also in the midst of establishing a new ZPL in Kolkata that will be capable of processing COVID-RTPCR samples. This would considerably increase its capacity to process and report COVID- RTPCR tests over time.

Thyrocare is creating an expanding network of molecular imaging centres via NHL, with a primary focus on early and effective cancer surveillance. PET-CT scanners are used at each of its imaging facilities to aid in cancer diagnosis, staging, therapy monitoring, effectiveness, and evaluation of disease recurrence.

Thyrocare now has 10 PET-CT scanners in operation across its 8 imaging centres: two in Navi Mumbai, two in New Delhi, and one each in Hyderabad, Central Mumbai, Western Mumbai, Aurangabad, Nashik, and Bangalore. During the fiscal year, Thyrocare sold their Jaipur PET-CT business since it was no longer commercially feasible following the epidemic. In addition, NHL owns and runs a medical cyclotron plant in Navi Mumbai, which manufactures the radioactive biomarker FDG, which is necessary for PET-CT scans. The company claims it has created a platform of inexpensive diagnostic services and is in a position to expand its services and test offerings.

Some of the key aspects which differentiates Thyrocare from others

  • Thyrocare runs a Centralized Processing Laboratory (CPL) in Mumbai, India for esoteric examinations, as well as Regional Processing Laboratories in major Indian metropolises and other regions of Asia.
  • Thyrocare has a distinct focus on clinical chemistry and preventative care diagnostics.
  • Unusual air-cargo arrangements ensure that samples arrive at Thyrocare’s laboratory every night, on the same night, before midnight.
  • Thyrocare’s laboratory is open 24 hours a day, seven days a week to meet the demands of its clients.
  • Aptio (Siemens)- World’s largest and longest laboratory track automation- India’s first preanalytical barcoded vial sorter (MUT) and Sample Sorter- (Roche).

Thyrocareโ€™s Acquisition by Pharmaeasy

PharmEasy, an online pharmacy company, has purchased a controlling investment in Thyrocare Technologies in order to diversify and strengthen its testing business. PharmEasy parent API Holdings paid Rs 4,546 crore for a 66.1 percent share in Thyrocare, indicating that Indians are increasingly relying on mobile apps for their healthcare requirements.

A. Velumani, chairman of Thyrocare, will purchase a less than 5% share in API Holdings Ltd as part of a series of equity transactions by API’s existing and new investors.

According to the agreement, PharmEasy and Thyrocare will collaborate to assist speed the delivery of high-quality diagnostic and outpatient department (OPD) services throughout the whole continuum of patient care to almost 800 million Indians.

A brief about the parent company PharmaEasy

PharmEasy, founded in 2015, is a consumer healthcare “super app” that provides on-demand, home-delivered access to a wide range of prescription, OTC pharmaceutical, and other consumer healthcare products, comprehensive diagnostic test services, and teleconsultations, thereby serving their healthcare needs.

API Holdings (API), PharmEasy’s parent firm, is trying to build a strong presence throughout the whole out-patient healthcare value chain for consumers and pharmacy enterprises by offering services such as teleconsultation, diagnostics, prescription delivery, and pharmaceutical supply chain. The parent firm operates brands such as PharmEasy, RetailIO, and DocOn, with PharmEasy serving the consumer market. Thyrocare has now joined the ranks of API brands.

PharmEasy has raised a roughly $350 million investment round in October 2021, ahead of the publication of its draught red herring prospectus (DRHP) prior to an Initial Public Offering (IPO) (IPO). According to the documents, the company raised approximately $204 million (over Rs 1,505 crore) in primary funding from Singapore’s Amansa Capital, Blackstone-backed hedge fund ApaH Capital, US hedge fund Janus Henderson, OrbiMed, Steadview Capital, Abu Dhabi’s sovereign wealth fund ADQ, hedge fund Neuberger Berman, and London’s Sanne Group.

API Holdings’ post-money valuation has risen to $5.6 billion as a result of the pre-IPO transaction, according to sources. PharmEasy was valued at $4 billion following the acquisition of diagnostics chain Thyrocare for more than $600 million in June.

PharmEasy has stated that it intends to engage around 200 engineers for its soon-to-be-opened development centres in Hyderabad, Pune, and the National Capital Region. It presently employs around 6,100 people.

Synergies between PharmaEasy and Thyrocare Technologies

According to Siddharth Shah, Co-founder and CEO of PharmEasy, healthcare will become the focal point of everything we do. As that number climbs, so will the emphasis on outpatient care. Everyone wants to be able to maintain their health. That requires information, tests, diagnosis, consultation, and treatment, all of which must be available in one location. Technology is the means through which all of this may be brought together. This entails the digitization of labs, physicians, patients, pharmaceuticals, and so on. There will be widespread adoption as ecosystems become digital.

Thyrocare’s acquisition would be important since it would include offline features that could be readily linked to PharmaEasy’s online portion. According to Siddharth, the two firms will continue to expand in the same manner, and technology will be the connecting factor. Thyrocare has been operating effectively and efficiently and will continue to do so.


For Q2FY22

  • In September 2021, net sales were Rs 176.21 crore, up 14.98 percent from Rs 153.25 crore in September 2020.
  • Quarterly net profit of Rs. 77.73 crore in September 2021, an increase of 80.56 percent over Rs. 43.05 crore in September 2020.
  • In September 2021, EBITDA is expected to be Rs. 104.48 crore, up 56.2 percent from Rs. 66.89 crore in September 2020.
  • Thyrocare Techn’s earnings per share (EPS) grew from Rs. 8.15 in September 2020 to Rs. 14.70 in September 2021.
  • Company has solid ROCE of 37% for the year ended March 2021

We have not placed much attention on the financials here. One of the primary reasons for this is that Thyrocare was once a publicly traded business, and the management’s focus was on smart expansion while retaining profitability and keeping all financial ratios in balance. Everything has changed now that Thyrocare has been bought by PharmaEasy. We can no longer see Thyrocare Technologies as a well-established corporation. To evaluate it, we must compare it to newly listed startup firms such as Tomato, Naykaa, and Paytm, where the company’s focus is not on maintaining profitability or cash flows, but rather on exponential development and developing a self-sufficient eco system.

We can no longer assess the firm just by looking at the numbers; rather, we must consider the wider picture, which is the management’s vision and the resolve with which they are pushing forward. Furthermore, parent firm PharmaEasy/Api Holdings has been furled with adequate capital from its pre-ipo investment round, so there should be no liquidity difficulties in the foreseeable future.

One of the significant risks or things that we were unable to grasp or get suitable information for was that the promoters had pledged 100 percent of the company’s shares. Users are asked not to post any questions about it, and if you discover any significant explanations or news about it, please share it with us.

Sectorial Outlook

Due to lower healthcare spending as a percentage of GDP, the Indian diagnostic market is tiny in comparison to the diagnostic markets in other nations. In 2018, India’s healthcare spending as a percentage of GDP was only 3.5 percent, while affluent countries such as the United Kingdom and the United States spent 10% and 17% of GDP, respectively. The Indian diagnostic market is vastly underserved, with enormous development potential. According to the report, it is a rapidly rising component of the broader healthcare market. The Indian diagnostic market is expected to grow at a CAGR of 13% till FY23, owing to a variety of growth factors such as an ageing population, increased insurance coverage, and a growing emphasis on preventative care diagnostics.

Small and regional unorganised diagnostic laboratories dominate the business, accounting for more than 70% of the entire diagnostic market. COVID-19 has had a significant influence on the Indian diagnostics environment. Because local unorganised players are suffering operational issues, there is a greater reliance on organised players. Because of the rising confidence in recognised brands with high-tech and authorised laboratories, reports from organised players are becoming more prominent.


Thyrocare is on solid ground, thanks to a steady recovery in core business, an anticipated gain in B2C share, the launch of regional laboratories, and the expansion of branded franchisee centres, all of which will help volume growth. API Holding’s technology and digital solutions will also provide Thyrocare with critical digital capabilities. When it gains size, more product/service offers and the inclusion of specialised test profiles would improve its realisations. The structural tailwind from the change from unorganised to organised company, prospective consolidation, expected rise in preventative check-ups, and big scale will favour major organised players like Thyrocare.

Revenue from Covid tests, which has been a large proportion of revenues in FY21 and likely in FY22 (given the recent spread of Omnicron variant), may not recur to the same extent in the coming period, and thus revenue growth post FY22 may not be very exciting. This remains a key risk for revenue growth in the coming period. PharmEasy, on the other hand, has highly ambitious ambitions to compensate for this.

Thyrocare might be merged with PharmEasy in the medium future; however, the benefit to Thyrocare shareholders would rely on PharmEasy’s stock price (post listing) and the swap ratio. Thyrocare is worth investigating in the long run due to its high historical growth history, well-established brand image, and robust return ratios.

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