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    Buy Aster DM Healthcare, target price Rs 278: HDFC Securities

    Synopsis

    Aster DM Healthcare Ltd., incorporated in the year 2008, is a Mid Cap company (having a market cap of Rs 12485.33 Crore) operating in Hospitals & Allied Services sector.

    Buy-Sell---ThinkStockThinkStock Photos
    Promoters held 37.88 per cent stake in the company as of 30-Jun-2022, while FIIs owned 11.44 per cent, DIIs 9.65 per cent.
    HDFC Securities has buy call on Aster DM Healthcare with a target price of Rs 278. The current market price of Aster DM Healthcare is Rs 250.05.

    Aster DM Healthcare Ltd., incorporated in the year 2008, is a Mid Cap company (having a market cap of Rs 12485.33 Crore) operating in Hospitals & Allied Services sector.

    Aster DM Healthcare Ltd. key Products/Revenue Segments include Hospital Services, Pharmaceuticals, Other Operating Revenue, Other Services, Consultancy Income for the year ending 31-Mar-2022.


    Financials
    For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 2699.39 Crore, down -1.83 % from last quarter Total Income of Rs 2749.77 Crore and up 13.44 % from last year same quarter Total Income of Rs 2379.63 Crore. Company reported net profit after tax of Rs 80.16 Crore in latest quarter.

    Investment Rationale
    The brokerage expects Revenue/EBITDA/PAT to grow at a CAGR of 9%/7%/10% over FY22-24E. The stock trades at an attractive valuation of ~9x FY24E EV/EBITDA, which represents a significant discount to its Indian peers. Such a discount could be due to the lower contribution from the India region. It believes such a high discount is unwarranted, given the stable operating performance and increase in share from the India business as more hospitals reach maturity, while being supported by a steady growth outlook in GCC. The divestment and restructuring of the GCC business remain on track and could unlock value.


    Promoter/FII Holdings
    Promoters held 37.88 per cent stake in the company as of 30-Jun-2022, while FIIs owned 11.44 per cent, DIIs 9.65 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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