Shares of this microcap company jumped around 4 percent in Wednesday’s trading session after signing MoU Health Plus Hospital. The shares have delivered around 20 percent returns to its shareholders in three months.
With a market capitalization of Rs. 65.7 crores, the shares of Sangani Hospitals Ltd started Wednesday’s trading session on a higher note at Rs. 46.55 compared to its previous close of Rs. 45.50. During the trading session, the shares hit a high of Rs. 47.85, gaining around 4 percent and closed the day at Rs. 46 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had executed a Memorandum of Understanding with Health Plus Hospital for managing and operating Health Plus Hospital with a pre-decided mutually agreeable revenue share model.
As per the MoU, Sangani Hospitals Limited undertakes to manage and oversee the operations of Health Plus Hospital, assuming responsibility for various facets including Human Resources, IT infrastructure, operational capital, marketing, and investment in medical equipment, as mutually agreed upon.
Furthermore, both parties will share expenses related to drug and instrument procurement, advertising, and marketing until the breakeven point is reached and the agreement spans a duration of ten years from the execution of the Memorandum of Understanding (MOU).
Coming onto the company’s financial statements, the revenue magnified by 273 percent from Rs. 4.20 crores during FY21-22 to Rs. 15.67 crores in FY22-23. In addition, the net profits zoomed by 41 percent from Rs. 1.05 crores to Rs. 1.48 crores during the same timeframe.
Earlier, Sangani Hospitals Limited entered a Memorandum of Understanding with Dr. Bhavinsh Babubhai Mori and Dr. Pareetaben Dodiya to establish a new surgical department at Devasya Hospital, Keshod, Gujarat.
Under the agreement, Sangani Hospitals will provide infrastructure while the doctors will contribute their private practice earnings after deducting rent. The memorandum of understanding (MoU) was signed to meet the rising demand for specialized surgical and gynaecology services in the locality.
Looking at the company’s important financial ratios, the return on equity was at 12.87 percent in FY22-23 and the return on capital employed was recorded at 17.35 percent during the same period. On the other hand, the net profit margin was at 9.44 percent during FY22-23.
According to the latest shareholding pattern, the promoters maintain a 73.22 percent stake, while during the latest quarter, foreign institutional investors (FIIs) acquired a fresh stake of 0.02 percent and. the remaining 26.76 percent of shares are held by retail investors.
Headquartered in Gujarat, Sangani Hospitals was incorporated in 2021. It is a multi-specialty healthcare provider operating in the Keshod and Veraval regions of Gujarat. The company offers healthcare services and operates with a combined bed capacity of 68 beds, focusing on providing specialized medical care to the local communities.
Written By Vaibhav Patil
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