The shares of this pharma company rose nearly 8 percent after reporting a remarkable increase of 25,660 percent year-on-year in net profits.
Share Price Variation
In Thursday’s trading session, at around 10.30 am the share price of Aster DM Healthcare Ltd. reached an intra-day high of Rs.373.35 per share from its previous close of Rs.346.95 apiece. The stock gained around 8 percent in the session.
Rationale for the Rise
With a market capitalization of Rs.18,117 crores, the company reported consolidated revenue of Rs.1,002 crores for the quarter ending June 2024, marking a 19 percent increase from Rs.841 crores in the same quarter last year and a 3 percent rise from Rs.974 crores in Q4 FY24.
Aster DM Healthcare Ltd. saw a staggering 25,660 percent year-over-year increase in Profit After Tax (PAT), reaching Rs.5,152 crores in Q1 FY25, up from Rs.20 crores in the June 2024 quarter.
This dramatic rise was primarily due to an increase in other incomes totaling Rs.5,120 crores in Q1 FY25. This included over Rs. 5,000 crores received from Affinity Holdings Private Ltd., its Mauritius subsidiary, for the separation of its GCC (Gulf Cooperation Council) business.
Furthermore, on a quarter-on-quarter basis, the PAT improved significantly from a net loss of Rs.2 crores in Q4 FY24.
Financially, Aster DM Healthcare Ltd. has demonstrated impressive growth. The Earnings Per Share (EPS) has reached a high of 103, and Profit Before Tax (PBT) saw a remarkable 19,865 percent YoY increase.
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The company’s Return on Capital Employed (ROCE) and Return on Equity (ROE) stand at 6.9 percent and 4.76 percent, respectively, while it maintains a favorable debt-to-equity ratio of 0.26.
Geographical Revenue Mix
Aster DM Healthcare Ltd. generates 55 percent of its revenue from Kerala, with Karnataka and Maharashtra contributing 34 percent collectively. The remaining 11 percent comes from Andhra Pradesh and Telangana.
Segment Revenue Composition
The company primarily earns 92.5 percent of its revenue from the Hospital segment. The Retail Pharmacies segment, including opticals, accounts for 5 percent, while the Clinics segment contributes 2.7 percent. The remaining 0.2 percent comes from other sectors.
Shareholding Pattern
As per the shareholding pattern of June 2024, the Promoters hold a 41.88 percent stake in the company, Foreign Institutional Investors (FII) hold a 27.08 percent stake, while Domestic Institutional Investors (DII) and Retail Investors hold a 16.35 percent and 14.32 percent stake in Aster DM Healthcare Ltd., respectively.
Company Profile
Aster DM Healthcare Limited is a leading integrated private healthcare service provider in the GCC (Gulf Cooperation Council) countries and has a growing presence in India. Emphasizing clinical excellence, it is among the few organizations globally with a robust presence across primary, secondary, tertiary, and quaternary healthcare sectors.
The company has a center of excellence in Cardiac sciences, Surgery & allied specialties, Obstetrics & Gynaecology, Orthopaedic surgery, Paediatric and pediatric super specialty, Surgical gastroenterology, Renal sciences
Written by – Siddesh S Raskar
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