In early trade on Thursday, shares of one of India’s leading private healthcare service providers surged up to 9.5 percent to Rs 354 per share, a day after reports of a potential sale of its India business emerged.
At 11:45 a.m., Aster DM Healthcare shares were trading at Rs 342.30 on the National Stock Exchange, up 5.96 percent from the previous close price. The company is valued at Rs 17,073 crore on the stock exchange.
According to reports, Private equity firm BPEA EQT and the Ontario Teachers Pension Plan Board have expressed preliminary interest in acquiring assets from Aster DM Healthcare, particularly its India operation. Others interested in prospective business bids include Blackstone Inc. and KKR & Co.
According to the reports, a bid for all of Aster may be worth more than $2.5 billion, with the company’s Gulf assets fetching roughly $1 billion and the Indian business fetching around $1.5 billion.
In the last six months, the stock has delivered a return of 39 percent and 44 percent in a year.
The company’s revenue has increased by 21 percent yearly, from Rs 2,662 crore in Q1FY23 to Rs 3,215 crore in Q1FY24. In the same time frame, the company’s net profit declined by 66 percent, from Rs 80 crore to Rs 27 crore.
In the recent financial year the company reported a net profit margin of 3.97 percent and an operating margin of 7.23 percent.
The company promoters hold 41.88 percent of the company as of a recent shareholding pattern, while Foreign institutional investors hold 38.82 percent and retail investors hold a 10.26 percent stake.
Aster DM Healthcare Limited is one of the largest integrated private healthcare service providers operating in GCC countries and India. The company provides services in areas, such as cardiology, dental, dermatology, dietetics, endocrinology, general surgery, gynecology, pediatrics, psychiatry, pulmonology, and urology.
Written by Omkar Chitnis
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. Dailyraven Technologies 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.
