Fortis Healthcare shares rise despite weak Q1 nos

NEW DELHI: Shares of Fortis Healthcare rose over 2 per cent in the early trade on Friday despite posting disappointing results for the first quarter of FY17. The healthcare firm reported consolidated net profit of Rs 25.26 crore for the June quarter.

The company had posted a net profit of Rs 97.40 crore for the corresponding period of the last financial year.

"The earnings reported for the quarter are not comparable with the corresponding period of last year due to progressive disinvestment of the company's international businesses," Fortis Healthcare said in a statement.

Commenting on the earnings, Fortis Healthcare CEO Bhavdeep Singh said: "In the forthcoming quarters, we will drive further substantive gains as we further accelerate our efforts across all focus areas."

Brokerage firm Macquarie has maintained an 'outperform' rating on the stock with a target price of Rs 250. The global investment bank said the current levels provide attractive entry opportunity with a 12-month view.

Demerger and separate listing of SRL Diagnostics will help unlock significant value for Fortis shareholders, the Macquarie note said. It further said the company management has guided for strong sequential growth in Ebitda for the hospital business going ahead. Fortis is trading at an attractive valuation of 11.5 times FY18E EV/Ebitda.

At 10:00 am, shares of the company were trading at Rs 191.15 apiece, up by 2.03 per cent from its previous close on the Bombay Stock Exchange (BSE).