Shares of Krishna Institute of Medical Sciences (KIMS) zoomed nearly 5 per cent on Wednesday to hit a new 52-week high of ₹ 1,806.00 apiece after a bulk deal took place on the counter. Its shares settled at ₹ 1,730.00 apiece.
This is the third large deal that took place in four months. According to the bulk deals data available on the BSE, SBI Mutual Fund bought 40,68,698 shares of the company at ₹ 1710.00 apiece, taking the transaction value to over ₹ 695.74 crores. On the other hand, General Atlantic Singapore KH Pte Ltd sold an equal number of shares at the same price.
On May 30, General Atlantic Singapore sold 23.2 lakh shares, or a 2.89 percent stake, at ₹ 1,600 a share. In another deal on March 22, Polar Capital Funds Plc offloaded a 1.38 percent stake in the company.
KIMS is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of patients treated and treatments offered. It offers multidisciplinary healthcare services with primary, secondary, and tertiary care across 2-3 tier cities and an additional quaternary healthcare facility in tier-1 cities.
In the past year, the company’s share price increased from ₹ 1121.50 to the current level, giving 53.38% returns. The stock surged 119% from its issue price of ₹ 825 apiece in 2021, delivering multibagger returns of 118%. Therefore, if an investor would have invested during its IPO (Initial Public Offer) and would have remained invested until now, their holdings would have been worth ₹ 2.18 lakhs today!
The hospital chain commands a market capitalization of ₹ 13,772 crores and is a small-cap company. It has an ideal return on equity of 22.00% and an ideal debt-to-equity ratio of 0.41. Its shares were trading at a price-to-earnings ratio (P/E) of 40.96, which is almost at par with the industry P/E of 40.93.
The company’s promoters hold a 38.84% stake in it, followed by mutual funds with 21.68%, foreign institutions with 19.41%, retail investors with 14.49% and other domestic institutions with 5.58%.
Written By Simran Bafna
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