Add Fortis Healthcare, target price Rs 299: ICICI Securities

ICICI Securities has add call on Fortis Healthcare with a target price of Rs 299. The current market price of Fortis Healthcare Ltd. is Rs 258.15. Time period given by analyst is one year when Fortis Healthcare 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 19466.60 Crore) operating in Hospitals & Allied Services sector.

Fortis Healthcare Ltd. key Products/Revenue Segments include HealthCare Services, Other Operating Revenue, Lease Rentals, Pharmaceuticals and Export Incentives for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 1508.55 Crore, up 8.99 % from last quarter Total Income of Rs 1384.09 Crore and up 6.37 % from last year same quarter Total Income of Rs 1418.15 Crore. Company reported net profit after tax of Rs 124.29 Crore in latest quarter.

Investment Rationale
The stock currently trades at EV/EBITDA of 18.1x FY23E and 15.0x FY24E. The brokerage remains optimistic on the outlook considering strong growth in hospitals with increasing occupancy and ARPOB, inherent traction in the diagnostic industry for SRL, and cost- control initiatives employed by the current management. Maintain ADD on the stock with a target price of Rs299/share based on SoTP valuation of FY24E.

Promoter/FII Holdings
Promoters held 31.17 per cent stake in the company as of 30-Jun-2022, while FIIs owned 29.66 per cent, DIIs 17.6 per cent.