Shares of this healthcare company surged 7 percent in Monday’s trading session after the company declared a Special Dividend of Rs. 118. The stock has delivered a multibagger return of 108 percent to its shareholders in one year.
With a market capitalization of Rs. 25,985 crores, the shares of Aster DM Healthcare Ltd started Monday’s trading session on a higher note at Rs. 545 compared to its previous close of Rs. 488.20. During the trading session, the shares hit a high of Rs. 558, gaining 7 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 523 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that the board had approved a special dividend of Rs. 118 per equity share after the conclusion of its meeting earlier on Friday and has also set 23 April 2024, has the record date for the dividend.
Furthermore, the company emphasized that the dividend stems from the proceeds derived from the sale of the GCC business and the redemption of redeemable preference shares issued by Affinity Holdings Pvt Ltd, a wholly-owned significant subsidiary of Aster DM Healthcare, against 49,95,13,060 equity shares valued at Rs. 10 each.
Coming onto the company’s financial statements, the revenue increased by 12 percent from Rs. 3,317 crores during the September quarter to Rs. 3,711 crores in the December quarter. In addition, the net profits showcased a transition from a net loss of Rs. 15 crores to a net profit of Rs. 209 crores during the same period.
According to the revenue breakdown for the first nine months of FY24, Multispecialty contributes 19 percent of the revenue, Cardiac Sciences 13 percent, Neuro Sciences 11 percent, Gastroenterology and Integrated Liver Care 9 percent, Oncology 9 percent, Nephrology and Urology 7 percent, Orthopaedics 7 percent, Women’s Health 6 percent, Child and Adolescent Health 6 percent, and other segments account for 13 percent.
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 3.23 percent during FY 21-22 to 6.33 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 3.93 percent to 6.37 percent during the same timeframe. Furthermore, the net profit margin increased from 8.08 percent during FY21-22 to 11.30 percent during FY22-23.
Headquartered in Kerala, Aster DM Healthcare was incorporated in 2008. The company is one of the largest integrated private healthcare service providers operating in GCC (Gulf Cooperation Council) countries and an emerging player in India.
Written By Vaibhav Patil
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