Shares of this healthcare services company jumped 3 percent after receiving a license from the “Insurance Regulatory and Development Authority of India” (“IRDAI”) to carry on the health insurance business exclusively. The shares have delivered more than 70 percent returns to its investors in one year.
With a market capitalisation of Rs. 25,361 crores, the shares of Narayana Hrudayalaya Ltd started Monday’s trading session on a higher note at Rs. 1,251.85 compared to its previous close of Rs. 1,217.45. The shares hit a high of Rs. 1,265.80, gaining around 3 percent and are currently trading at Rs. 1,245.30 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that its wholly-owned subsidiary, Narayana Health Insurance Limited had been granted a license by the Insurance Regulatory and Development Authority of India (“IRDAI”) dated 3rd January 2024 to carry on health insurance business exclusively.
This helps the company to diversify into the health insurance business through the subsidiary and thereby enabling the company to offer an integrated healthcare solution to the general public as a healthcare service provider.
Coming onto the company’s financial statements, the revenue increased 6 percent from Rs. 1,233 crores in the June quarter to Rs. 1,305 crores during the September quarter. In addition, the net profits zoomed by 23 percent from Rs. 184 crores to Rs. 227 crores during the same timeframe.
The company has planned to pursue organic and inorganic growth opportunities in India and overseas. Furthermore, the company has planned capex for brownfield expansion in Bangalore and Kolkata and Bed capacity expansion to add more than 700 beds in the next 3 to 4 years.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 26.5 percent during FY 21-22 to 33.55 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 26.83 percent to 33.92 percent during the same timeframe. Furthermore, the net profit margin increased from 9.24 percent during FY21-22 to 13.41 percent during FY22-23.
Headquartered in Bengaluru, Narayana Hrudayalaya was incorporated in 2000. The company is engaged in providing economical healthcare services. It has a network of multispecialty and super-speciality hospitals spread across multiple locations.
Written By Vaibhav Patil
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