Add Aster DM Healthcare, target price Rs 242: ICICI Securities

ICICI Securities has add call on Aster DM Healthcare with a target price of Rs 242. The current market price of Aster DM Healthcare is Rs 207.15. Time period given by analyst is one year when Aster DM Healthcare Ltd. price can reach defined target.

Aster DM Healthcare Ltd., incorporated in the year 2008, is a Mid Cap company (having a market cap of Rs 10399.86 Crore) operating in Hospitals & Allied Services sector.

Aster DM Healthcare Ltd. key Products/Revenue Segments include Hospital Services, Pharmaceuticals, Other Operating Revenue, Other Services, Consultancy Income for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 2699.39 Crore, down -1.83 % from last quarter Total Income of Rs 2749.77 Crore and up 13.44 % from last year same quarter Total Income of Rs 2379.63 Crore. Company reported net profit after tax of Rs 80.16 Crore in latest quarter.

Investment Rationale
The brokerage largely maintains revenue estimates and increase EBITDA estimates by ~2% over FY23E-FY24E. Recent run up in the stock price (~26% in 3 months) makes upside limited and hence it downgrades to ADD (from Buy) on the stock with SoTP-based target price of Rs242/share. Key downside risks: Regulatory hurdles, additional waves of covid in India and delay in turnaround of new hospitals.

Promoter/FII Holdings
Promoters held 37.88 per cent stake in the company as of 30-Jun-2022, while FIIs owned 11.44 per cent, DIIs 9.65 per cent.