Synopsis:
Aster DM Healthcare is in focus after the company announced its plans to acquire an additional 13 percent stake in its subsidiary, taking its total stake to 70.49 percent. Additionally, it plans to set up a 500-bed super-specialty hospital worth Rs 580 crore in Bengaluru.
With a market capitalization of Rs 30,686 crore, the shares of Aster DM Healthcare Ltd are currently trading at Rs 592 per share, down by 12 percent from its 52-week high of Rs 674.15. Over the past five years, the stock has delivered a robust return of 349 percent.
On Wednesday, Aster DM Healthcare made some key approvals, which they announced through a stock exchange filing. First up, they’ve increased their stake in Dr. Ramesh Cardiac & Multispecialty Hospital Pvt Ltd (DRCM) by an additional 13 percent, bringing their total ownership from 57.49 percent to 70.49 percent.
This acquisition will cost them Rs 63.01 crore and will probably be completed within the next 1-2 months. DRCM has been doing well, reporting a turnover of Rs 258 crore and a profit of Rs 12.82 crore for FY25.
On top of that, the company has inked a 30-year lease deal with KEMWELL Pvt Ltd to set up a brand-new 500-bed super-specialty hospital in Yeshwanthpur, Bengaluru. With an investment of Rs 580 crore, funded through internal resources and bank loans, they expect to wrap up the project in the latter half of FY28-29.
Also Read: Ethanol stock crashes after company’s net profit decreases 93% YoY
Financial Highlights
The company reported a consolidated revenue of Rs 4,138 crore in FY25, up by 12 percent from its FY24 revenue of Rs 3,699 crore. Coming to its profitability, the company reported a normalised net profit growth of 49 percent to Rs 357 crore in FY25 from Rs 240 crore in FY24.
The stock delivered an ROE and ROCE of 10.48 percent and 10.68 percent respectively, and is currently trading at a P/E of 76.91x as compared to its industry average of 69x.
Aster DM Healthcare Limited is a healthcare service provider with operations in India and the Middle East, covering the UAE, Qatar, and Saudi Arabia. It operates hospitals, clinics, in-house and retail pharmacies, and optical stores. The company also offers healthcare consultancy and allied services
Written by Satyajeet Mukherjee
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Stock in focus after it announces ₹580 Cr investment in Bengaluru for expansion appeared first on Trade Brains.