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Hospital group Netcare looking healthy

29 July 2021

Mergence Investment Managers thinks Netcare (NTC) is a cheap, quality business that may not need a return to FY19 (pre-Covid) profitability to deliver good investment returns.Mergence’s scenario analysis indicates risk is skewed to the upside and that downside appears limited.Indications that NTC is a quality company include a detailed bottom-up analysis of Porter’s five forces, moat assessment, supported by high long-term average margins and an unbroken record of dividend growth for 23 years.