AgenciesRelated
has buy call on Fortis Healthcare with a target price of Rs 293. The current market price of . is Rs 235.4. Time period given by analyst is one year when Ltd. price can reach defined target.
Fortis Healthcare Ltd., incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 17598.07 Crore) operating in Hospitals & Allied Services sector.
Fortis Healthcare Ltd. key Products/Revenue Segments include HealthCare Services, Lease Rentals, Other Operating Revenue, Pharmaceuticals for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 1384.09 Crore, down -6.06 % from last quarter Total Income of Rs 1473.34 Crore and up 9.95 % from last year same quarter Total Income of Rs 1258.78 Crore. Company reported net profit after tax of Rs 80.70 Crore in latest quarter.
Investment Rationale
Fortis Healthcare’s (FHL) Q4FY22 performance was below estimates with Omicron wave impacting hospitalisation in the country. Revenues grew 10.0% YoY to Rs13.8bn (I-Sec: Rs14.8bn) with hospitals and SRL (diagnostics) growing 6.0% and 37.7% YoY respectively. EBITDA margin stood at 16.1% (down 350bps QoQ) vs estimate of 19.0%. It expects FHL to continue its growth trajectory in the ensuing quarters driven by an increasingly normalising environment. Management has taken steps to reduce personnel and SG&A costs, benefits of which have been visible in the past few quarters. It remains positive on growth recovery, cost optimisation efforts and potential operating leverage. Recent correction in the stock price (~17% in last 6 months) makes current valuations reasonable. It maintains BUY with a revised target price of Rs293/share (earlier: Rs299/share).
Promoter/FII Holdings
Promoters held 31.17 per cent stake in the company as of 31-Mar-2022, while FIIs owned 29.82 per cent, DIIs 16.9 per cent.
Fortis Healthcare Ltd., incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 17598.07 Crore) operating in Hospitals & Allied Services sector.
Fortis Healthcare Ltd. key Products/Revenue Segments include HealthCare Services, Lease Rentals, Other Operating Revenue, Pharmaceuticals for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 1384.09 Crore, down -6.06 % from last quarter Total Income of Rs 1473.34 Crore and up 9.95 % from last year same quarter Total Income of Rs 1258.78 Crore. Company reported net profit after tax of Rs 80.70 Crore in latest quarter.
Investment Rationale
Fortis Healthcare’s (FHL) Q4FY22 performance was below estimates with Omicron wave impacting hospitalisation in the country. Revenues grew 10.0% YoY to Rs13.8bn (I-Sec: Rs14.8bn) with hospitals and SRL (diagnostics) growing 6.0% and 37.7% YoY respectively. EBITDA margin stood at 16.1% (down 350bps QoQ) vs estimate of 19.0%. It expects FHL to continue its growth trajectory in the ensuing quarters driven by an increasingly normalising environment. Management has taken steps to reduce personnel and SG&A costs, benefits of which have been visible in the past few quarters. It remains positive on growth recovery, cost optimisation efforts and potential operating leverage. Recent correction in the stock price (~17% in last 6 months) makes current valuations reasonable. It maintains BUY with a revised target price of Rs293/share (earlier: Rs299/share).
Promoter/FII Holdings
Promoters held 31.17 per cent stake in the company as of 31-Mar-2022, while FIIs owned 29.82 per cent, DIIs 16.9 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
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