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ICICI Securities has buy call on Aster DM Healthcare with a target price of Rs 213. The current market price of Aster DM Healthcare is Rs 185. Time period given by analyst is one year when Aster DM Healthcare Ltd. price can reach defined target.
Aster DM Healthcare Ltd., incorporated in the year 2008, is a Mid Cap company (having a market cap of Rs 9418.32 Crore) operating in Hospitals & Allied Services sector.
Aster DM Healthcare Ltd. key Products/Revenue Segments include Hospital Services, Other Operating Revenue, Pharmaceuticals, Other Services, Consultancy Income for the year ending 31-Mar-2021.
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2749.77 Crore, up 3.33 % from last quarter Total Income of Rs 2661.09 Crore and up 13.59 % from last year same quarter Total Income of Rs 2420.69 Crore. Company reported net profit after tax of Rs 247.71 Crore in latest quarter.
Investment Rationale
Aster DM Healthcare’s (Aster) Q4FY22 performance exceeded estimates with strong growth in GCC hospitals. Consolidated revenues grew 14.1% YoY to Rs27.3bn (I-Sec: Rs26.6bn), which works out to a 2-year CAGR of 9.4%. India business posted a growth of 26.2% YoY. EBITDA margin improved by 300bps YoY to 17.0%. It expects the overall business and margins to continue improving with higher occupancy and case mix. It believes in the company’s strategy of asset- light expansion, especially in India, as it would not only support growth for the company but also lift margins. However, uncertainty about the restructuring plan, including demerger of India business, is likely to weigh on near-term performance. Recent correction (6% over the past 1 month) provides additional comfort in valuations, hence it upgrades the stock to BUY (from Add) with a TP of Rs213/share (prior: Rs211/share).
Promoter/FII Holdings
Promoters held 37.88 per cent stake in the company as of 31-Mar-2022, while FIIs owned 11.03 per cent, DIIs 8.64 per cent.
Aster DM Healthcare Ltd., incorporated in the year 2008, is a Mid Cap company (having a market cap of Rs 9418.32 Crore) operating in Hospitals & Allied Services sector.
Aster DM Healthcare Ltd. key Products/Revenue Segments include Hospital Services, Other Operating Revenue, Pharmaceuticals, Other Services, Consultancy Income for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2749.77 Crore, up 3.33 % from last quarter Total Income of Rs 2661.09 Crore and up 13.59 % from last year same quarter Total Income of Rs 2420.69 Crore. Company reported net profit after tax of Rs 247.71 Crore in latest quarter.
Investment Rationale
Aster DM Healthcare’s (Aster) Q4FY22 performance exceeded estimates with strong growth in GCC hospitals. Consolidated revenues grew 14.1% YoY to Rs27.3bn (I-Sec: Rs26.6bn), which works out to a 2-year CAGR of 9.4%. India business posted a growth of 26.2% YoY. EBITDA margin improved by 300bps YoY to 17.0%. It expects the overall business and margins to continue improving with higher occupancy and case mix. It believes in the company’s strategy of asset- light expansion, especially in India, as it would not only support growth for the company but also lift margins. However, uncertainty about the restructuring plan, including demerger of India business, is likely to weigh on near-term performance. Recent correction (6% over the past 1 month) provides additional comfort in valuations, hence it upgrades the stock to BUY (from Add) with a TP of Rs213/share (prior: Rs211/share).
Promoter/FII Holdings
Promoters held 37.88 per cent stake in the company as of 31-Mar-2022, while FIIs owned 11.03 per cent, DIIs 8.64 per cent.
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