Shares of this microcap company clocked 5 percent upper circuit after entering into an Operation and Management Service Agreement with KLS Memorial Hospital. In one year, the shares have delivered around 20 percent returns to its shareholders.
With a market capitalization of Rs. 96.8 crores, the shares of Maitreya Medicare Ltd started Tuesday’s trading session on a higher note at Rs. 142 compared to its previous close of Rs. 136.05. Within a few minutes of the opening bell, the shares clocked 5 percent upper circuit at Rs. 142.85 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they entered into an Operation and Management Service Agreement with a partnership firm KLS Memorial Hospital.
The agreement was signed to render operational and management services, nursing and quality management services, planning and consulting services, human resource management and training services, doctor management and liasoning services. This collaboration also involves the addition of 70 new beds to KLS Memorial Hospital’s facilities.
Coming onto the company’s financial statements, the revenue decreased by 17 percent from Rs. 13.53 crores during the September quarter to Rs. 11.72 crores in the December quarter. On the other hand, the net profits declined by 26 percent from Rs. 2.13 crores to Rs. 1.58 crores during the same period.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 21.70 percent during FY 21-22 to 58.72 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 11.95 percent to 33.53 percent during the same timeframe. Furthermore, the net profit margin increased from 2.22 percent during FY21-22 to 10.89 percent during FY22-23.
The hospital has experienced growth in recent years, with its bed capacity expanding from 67 beds in 2021 to 125 in 2023. The company aims to further expand its capacity to 200 beds in the future.
Furthermore, Maitreya Medicare Limited focuses on the southern Gujarat healthcare market, where it has a strong understanding of customer culture, regional nuances, and the mindset of medical professionals.
According to the latest shareholding pattern, the Promoters maintain ownership of 73.11 percent of the company’s stake, demonstrating their significant control. Foreign Institutional Investors (FIIs) possess 2.53 percent of the shares, while Domestic Institutional Investors (DIIs) hold a 1.35 percent stake. The remaining 23.02 percent of shares are distributed among Retail Investors.
Headquartered in Gujarat, Maitreya Medicare was incorporated in 2019. The company is an integrated multispeciality hospital with primary secondary and tertiary care.
Written By Vaibhav Patil
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