Shares of this small-cap stock hit its 5 percent lower circuit after allegations of illegal transplants being performed. In contrast to today’s bearish stock price movements, the company’s stock has delivered multibagger returns of around 111 percent to its stakeholders.
With a market capitalization of Rs 1,763.79 crores, the stocks of Indraprastha Medical Corporation Limited, a unit of the Apollo Hospitals group holding a 22.02 percent stake, started their trading session on Wednesday at Rs 192 and currently trades at Rs 189.75 hitting its 5 percent lower circuit.
Such sharp stock price movements are observed three days after UK-based ‘The Telegraph’, on December 3rd, published a report on December 3, claiming Apollo was “embroiled in a ‘cash for kidney’ racket in Myanmar enticing poor people to sell their organs for profit.
Regarding the same, the “National Organ and Tissue Transplantation Organisation” (NOTTO) has ordered an inquiry into allegations of a scam against the Apollo Hospital associate company. IMCL, via an exchange filing, asserted that it follows every ethical and legal requirement for transplants thereby refuting the allegations of the racket.
Coming onto the financials, the company, during the recent financial quarters, has registered positive movements in its operating revenues as well as net profits. The former grew from Rs 306 crores during Q1FY23-24 to Rs 317 crores during Q2FY23-24, and the latter, during the same period, rose from Rs 30 crores to Rs 32 crores.
As a result of the same, the company has reported a jump in its profitability ratios with the return on equity (RoE) shifting from 18.01 percent during FY21-22 to 22.70 percent during FY22-23, and, the return on capital employed (RoCE), keeping the timeframe the same, moved from 22.40 percent to 28.54 percent.
Having a look at the shareholding data for the September 2023 quarter, the President of India holds a 26 percent stake in IMCL
Indraprastha Medical Corporation Limited (IMCL) is a company based in India engaged in the healthcare business. The company runs and operates hospitals including ‘Indraprastha Apollo Hospitals’ and ‘Apollo Hospitals’. IMCL specializes in a wide range of treatments including kidney transplants, cancer, cardiac surgery, etc.
Written by Amit Madnani
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