The healthcare company rose by 2.3 Rs 318.7 per share from its intraday high on Thursday after the company announced the signing of its agreement to construct a new hospital building in Mumbai.
Shalby Limited signed an operation and management agreement to construct a new hospital building in Santacruz, Mumbai, with the Santacruz Residents Association and Bhikhubai Chandulal Jalundwala General Hospital (BCJ).
This project will be carried out once the Charity Commissioner in Mumbai has given his approval. The company plans to build a new 175-bed hospital in Mumbai’s Santacruz neighborhood.
The amendment provides for an interest-free security deposit of Rs 37.50 crore to be provided by the company to the Trust, of which Rs 29.65 crore has already been provided to the Trust and will be recovered in 30 years on an annual basis.
The company has a 30-year contract to operate and manage newly built hospital facilities. In the event that the Mumbai charity commissioner’s approval is not received, the Trust will return the security deposit plus nine percent interest over a 12-month period.
The company has reported that net revenue increased by 22 percent year on year from Rs 177.7 crores in Q2FY23 to Rs 217 crores in Q2FY24. Their net profit rose 39 percent year on year, from Rs 21.8 crores in Q2FY23 to Rs 30.3 crores in Q2FY24.
Shalby Limited is a small-cap company with a Market capitalization of Rs 3,700 crores. When compared to its peer companies, the company’s price-to-earnings ratio is low at 43.3, and its debt-to-equity ratio is low at 0.15.
The promoters of the company own 74.1 percent of the company; foreign institutional investors own 4.1 percent, and the general public owns 21.7 percent.
Shalby Limited’s share price has risen by 106 percent year to date and by 130 percent during the previous six months. For example, if an investor invested Rs 1 lakh six months ago, the current value would be Rs 2.3 lakhs.
Shalby Ltd operates in the Indian healthcare delivery market. The company’s activities include offering patients in a variety of specialty areas, such as neurology, orthopedics, complex joint replacements, cardiology, oncology, and renal transplants, tertiary and quaternary healthcare services. The hospital is among the best in India for joint replacement surgery and leads the world in knee replacement surgery.
Written by Sriram KV
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