Buy Aster DM Healthcare, target price Rs 193: ICICI Securities

ICICI Securities has buy call on Aster DM Healthcare with a target price of Rs 193. The current market price of Aster DM Healthcare Ltd. is Rs 156.5. 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 7794.90 Crore) operating in Hospitals & Allied Services sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 2420.69 Crore, up 6.89 % from last quarter Total Income of Rs 2264.57 Crore and up 3.98 % from last year same quarter Total Income of Rs 2327.94 Crore. Company reported net profit after tax of Rs 116.27 Crore in latest quarter.

Investment Rationale
The brokerage cuts revenue and EBITDA estimates by 1-2% and 5-6% respectively for FY22-FY23 to factor in impact of 2nd COVID-19 wave. It maintains BUY with a revised SoTP-based target price of Rs193/share based on FY23E (earlier: Rs200/share). Key downside risks: Regulatory hurdles, delay in recovery post COVID-19 and delay in turnaround of new hospitals.


Promoter/FII Holdings
Promoters held 37.9 per cent stake in the company as of March 31, 2021, while FIIs held 8.9 per cent, DIIs 7.8 per cent and public and others 42.8 per cent.