Shares of the company engaged in the hospital chain business jumped around 2 percent in Wednesday’s trading session after SBI Life Insurance bought stake in the company. The shares have delivered around 49 percent returns to its shareholders in one year.
With a market capitalisation of Rs. 17,279 crores, the shares of Krishna Institute of Medical Sciences Ltd started Wednesday’s trading session on a higher note at Rs. 2,148 compared to the previous close of Rs. 2,133. During the trading session, the shares hit a high of Rs. 2,176, gaining around 2 percent and are currently trading at Rs. 2,161 apiece.
According to the BSE bulk deal data, SBI Life Insurance company has bought 11,49,074 equity shares via open market transactions in KIMS, which is equivalent to 1.43 percent of paid-up equity, at an average price of Rs 2,085 per share, valued at Rs. 239.6 crores.
However, alternative investment fund India (Advantage Fund S4-I) has sold 10,70,545 equity shares, which is equivalent to 1.3 percent stake, in the company at the same price, amounting to Rs. 223.2 crores. As of December 2023, India Advantage Fund had a 2.23 percent stake in the midcap company.
Coming onto the company’s financial statements, the revenue decreased by 7 percent from Rs. 652 crores during the September quarter to Rs. 606 crores in the December quarter. In addition, the net profits declined by 24 percent from Rs. 101 crores to Rs. 77 crores during the same period.
The company has unveiled plans for the construction of new hospitals in Nashik and Bengaluru, aiming to enhance healthcare accessibility and quality. These expansion efforts are part of KIMS’ broader strategy to strengthen its position as a leader in the Indian healthcare industry.
Due to increasing expenditure, the profitability metrics of the company declined with the return on equity (RoE) decreasing from 20.20 percent during FY 21-22 to 15.48 percent in FY 22-23, and, the return on capital employed (RoCE) showed a downward movement from 26.17 percent to 20 percent during the same timeframe. Furthermore, the net profit margin decreased from 24.34 percent during FY 21-22 to 22.30 percent during FY 22-23.
Headquartered in Secunderabad, KIMS was incorporated in 1973. It is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of patients treated and treatments offered. The company offers multidisciplinary healthcare services with primary, secondary, and tertiary care across 2-3 tier cities and an additional quaternary healthcare facility in tier-1 cities.
Written By Vaibhav Patil
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