Getty ImagesICICI Direct has buy call on with a target price of Rs 580. The current market price of Narayana Hrudayalaya Ltd. is Rs 474.2.
Narayana Hrudayalaya Ltd., incorporated in the year 2000, is a Mid Cap company (having a market cap of Rs 9723.49 Crore) operating in Hospitals & Allied Services sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 750.36 Crore, up 24.91 % from last quarter Sales of Rs 600.73 Crore and down 4.44 % from last year same quarter Sales of Rs 785.19 Crore Company reported net profit after tax of Rs 40.84 Crore in latest quarter.
Investment Rationale
Despite Covid-related challenges, the company posted a substantial improvement in operational performance. Also, in Decembers, the company’s flagship centre revenues reached ~89% of pre-Covid (February 2020) levels. In view of significant near-term headwinds due to reduced overall occupancy levels amid Covid-19, the management has charted a path to reduce costs, increase efficiency and rationalise capex. New hospitals (SRCC, Gurugram, Dharamshila) continue to see a reduction in losses due to ramp up in occupancies. Notwithstanding Covid related impact, the improvement in numbers in the last few quarters is also on the back of judicious case mix identification (more focus on oncology, transplants and non-invasive procedures). It continues to believe in the long term prospects of the company on the back of asset-right model and affordability philosophy
Narayana Hrudayalaya Ltd., incorporated in the year 2000, is a Mid Cap company (having a market cap of Rs 9723.49 Crore) operating in Hospitals & Allied Services sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 750.36 Crore, up 24.91 % from last quarter Sales of Rs 600.73 Crore and down 4.44 % from last year same quarter Sales of Rs 785.19 Crore Company reported net profit after tax of Rs 40.84 Crore in latest quarter.
Investment Rationale
Despite Covid-related challenges, the company posted a substantial improvement in operational performance. Also, in Decembers, the company’s flagship centre revenues reached ~89% of pre-Covid (February 2020) levels. In view of significant near-term headwinds due to reduced overall occupancy levels amid Covid-19, the management has charted a path to reduce costs, increase efficiency and rationalise capex. New hospitals (SRCC, Gurugram, Dharamshila) continue to see a reduction in losses due to ramp up in occupancies. Notwithstanding Covid related impact, the improvement in numbers in the last few quarters is also on the back of judicious case mix identification (more focus on oncology, transplants and non-invasive procedures). It continues to believe in the long term prospects of the company on the back of asset-right model and affordability philosophy
Read More News on
Download The Economic Times News App to get Daily Market Updates & Live Business News.
