Shares of this small-cap pharma stock rose approximately 4 percent on Wednesday following the announcement of the acquisition of a super specialty hospital located in Delhi.
Share Price Movement
In Wednesday’s trading session, Yatharth Hospital & Trauma Care Services Ltd’s share price rose by 4.4 percent, hitting an intra-day high of Rs.688.00 per share, up from the previous close of Rs.659.00 per share. The shares have since retreated and are trading at Rs.677.05 per share.
What is the News
On Wednesday, Yatharth Hospital & Trauma Care Services Ltd was awarded the contract for a super specialty hospital located in Delhi, acquired under the SARFAESI Act 2002 through an e-auction process.
This well-established hospital, situated in Model Town, New Delhi, provides a comprehensive range of high-end specialty services. It has the potential to expand its capacity to over 300 beds and serves a significant residential and institutional client base.
This acquisition will solidify our presence in the lucrative Delhi market and enhance Yatharth’s position as a leading super specialty chain in Northern India.
Management Commentary
Commenting on the development, Yatharth Tyagi, Full-time Director of Yatharth Hospitals, stated: “We are pleased to announce entry into the Delhi market, which will further consolidate Yatharth Hospitals’ position as a leading private healthcare provider in North India, and enhance our capacity to deliver quality healthcare services in the region.
This is in line with our unwavering commitment to growth through strategic expansion, both organic and inorganic modes, showcasing our expertise in developing new healthcare facilities and successfully turning around existing operations.”
Shareholding Pattern
According to the September 2024 shareholding pattern, the promoters hold a 66.54 percent stake in Yatharth Hospital & Trauma Care. Foreign Institutional Investors (FII) own 6.28 percent, while Domestic Institutional Investors (DII) and retail investors hold 6.98 percent and 20.20 percent, respectively.
Financial Performance
In its recent financial updates, the company reported revenue of Rs.212 crore in Q1FY25, marking a 37 percent growth from Rs.155 crore in Q1FY24 and 37 percent from Rs.178 crore in Q4 FY24.
Similarly, the net profit of the company grew to Rs.30 crore from Rs.19 crore in the same period, reflecting a 58 percent increase. However, quarterly the net profit fell by 21 percent from Rs.38 crore in Q4 FY24.
Important Ratios
In terms of return ratios, return on capital employed (ROCE) stands at 23.9 percent, while return on equity (ROE) is at 21.7 percent. The company also features a strong current ratio of 7.59 and a low debt-to-equity ratio of 0.10.
Company Profile
Yatharth Hospital & Trauma Care Services Ltd is a prominent healthcare provider based in India, specifically in the National Capital Region (NCR), with a focus on delivering multi-specialty medical services. Here’s an overview of the hospital’s background, services, and operational details.
Written by – Siddesh S Raskar
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