Fortis Healthcare Limited is a leading integrated healthcare delivery service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities.
The company operates its healthcare delivery services in India, Dubai, Mauritius and Sri Lanka with 54 healthcare facilities (including projects under development), approximately 10,000 potential beds and 260 diagnostic centers.
Fundamentally, sales growth is comparatively healthy. Negative Return on Equity (ROE) over the years is the reason for worry. When we see consolidated Annual figures, Net profit variation resembles roller-coaster ride. The company is not declaring dividends and cash flow is not attractive.
In a filing to BSE, healthcare on 19th February 20Healthcare said: ” It is in the process of facilitating a third party exit for the existing Private Equity (PE) Investors in SRL Limited.” Also, the news ‘healthcare providers are demanding 10 year tax holidays from the Govt.’ boosted the sentiment and stock price soared 12% to close the day @175.7.
Technically stock price has made a Triple Bottom in Weekly and Daily charts, also it has broken out to closed above the Trend Line.
There is a saying in Dalal street “Buy the news, Sell the rumor” and present opportunity appears to be the reflection of the saying. One can ride the tide from 164 levels till it lasts. Have a plan to get away if tide strength vanishes @140.
Note: Information presented in the above article is available in public domain and it should not be treated as “Research Report”
Registration Status: I am not a SEBI registered Research Analyst.
As per SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014 and clarifications provided by SEBI “Any person who makes the recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.”
Disclaimer: I do not hold any position in FORTIS.