Hinduja Global hits upper circuit. Here's why

New Delhi: Shares of Hinduja Global Solutions hit upper circuit on Monday as the company inked a deal to sell its healthcare services business to Baring PE Asia.

As a part of unlocking value for its shareholders, Hinduja Global Solutions has announced the sale of its healthcare services business to private equity fund Barings Private Equity Asia for an enterprise value of $1.2 billion.

Following the development, shares of Hinduja Global Solution were locked in the buyer's circuit of 5 per cent to Rs 3,235.85. BSE Sensex was trading 201.51 points, or 0.37 per cent, higher at 54,604.36 at the time of writing this report.

The BPO arm of diversified Hinduja Group reported a 144 per cent surge in net profit to Rs 117.02 crore in the quarter ended June 2021 as against Rs 47.94 crore during the previous quarter ended June 2020.

Shares of Hinduja Global have rallied as much as 190 per cent in 2021 so far. The BPO counter has delivered almost 400 per cent return in the last one year.

The company's sales rose 25.46 per cent to Rs 1,550.52 crore in the quarter ended June, 30 2021 as against Rs 1,235.89 crore during the previous quarter ended June 2020.

"Although the profit margins have been increasing but the return on assets of the company has declined," said Ashis Biswas of CapitalVia Global research. "The stock price has been trading in an ascending channel and has recently crossed the 52-week high. Momentum in the stock may continue and we maintain the target of Rs 3,780," he added.