Fortis Healthcare shares dropped 1 percent intraday on June 20 after Japanese brokerage firm Nomura slashed its target price by 7 percent citing lower earnings estimates.
The brokerage has maintained a buy call on the stock and cut target price to Rs 159 from Rs 171 per share after factoring the impact of a potential open offer.
"We cut FY20/21 earnings estimates by 13 percent/33 percent and expect gradual recovery following a challenging FY19," Nomura said.
Last year in July, Northern TK Venture Pte Ltd became the promoter of Fortis Healthcare with 31.17 percent stake (as of March 2019).
Northern TK together with IHH Healthcare Berhad and Parkway Pantai Ltd had made an open offer to the equity shareholders of Fortis Healthcare to acquire up to 19.70 crore shares, representing 26 percent of the expanded voting share capital in December, but that is still stuck in the Supreme Court after a contempt plea filed by Japanese pharma company Daiichi Sankyo against the Singh brothers, who were former promoters of Fortis.
The stock was quoting at Rs 131.50, down Rs 1.25, or 0.94 percent on the BSE at 0945 hours IST.
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