The share price of a major integrated private healthcare service provider in the GCC climbed by 14 percent on Thursday, fueled by an impressive 810 percent year-over-year increase in net profits. This surge was further supported by robust revenue growth reported in its latest quarterly results.
Share Price Movement
During Thursday’s trading session, Aster DM Healthcare Ltd share price reached an intraday high of Rs.457.90 per share, representing a 13.9 percent increase from the previous close of Rs.402.00 per share. Over the last five years, the share has provided returns of over 250 percent.
What Happened
The sharp increase in the stock price was driven by significant growth in revenue and net profits reported by Aster DM Healthcare Ltd for the recent quarter. According to its latest filing, for the quarter ending September 2024, the company reported a 16.9 percent rise in revenue, reaching Rs.1,086 crore compared to Rs.929 crore in Q2 FY24.
On a quarter-over-quarter basis, revenue increased by 8.4 percent from Rs.1,002 crore in Q1 FY25.
In the same period, net profit soared by 810 percent to Rs.106 crore in Q2 FY25, compared to a net loss of Rs.15 crore in Q2 FY24. However, this figure is lower than the net profit of Rs.5,152 crore in Q1 FY25, which was primarily due to other income amounting to Rs.5,120 crore.
In terms of return ratios, return on capital employed (ROCE) is currently at 4.48 percent, while return on equity (ROE) is at 3.13 percent. The company has a strong current ratio of 1.93 and a low debt-to-equity ratio of 0.56.
Business Segments
Aster DM Healthcare Ltd has two main business segments: Hospitals and Clinics. The Hospitals segment contributes 94 percent of total revenue, while the Clinics segment accounts for 6 percent.
Expansion Plans
Aster DM Healthcare Ltd is expanding its bed capacity significantly over the next few years. In FY25, the company has 334 hospital beds, which will increase to 639 beds in FY26. By FY27, the bed capacity is expected to reach 904 beds. Furthermore, with the addition of approximately 1,800 beds, the total capacity is projected to be around 6,800 beds by FY27.
Operations Network
Aster DM Healthcare operates a comprehensive network comprising over 32 hospitals, 127 clinics, 521 pharmacies, and 205 laboratories across several countries, including the UAE, Oman, Saudi Arabia, and India.
Company Abouts
Aster DM Healthcare is a prominent integrated healthcare provider founded in 1987. Initially starting as a single clinic in Dubai, it has expanded significantly to become one of the largest private healthcare networks in the Gulf Cooperation Council (GCC) and an emerging player in India.
Written by – Siddesh S Raskar
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