Buy Aster DM Healthcare, target price Rs 300: ICICI Direct

ICICI Direct has buy call on Aster DM Healthcare with a target price of Rs 300. The current market price of Aster DM Healthcare is Rs 225.4.

Aster DM Healthcare, incorporated in the year 2008, is a Mid Cap company (having a market cap of Rs 11276.51 Crore) operating in Hospitals & Allied Services sector.

Aster DM Healthcare 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 30-09-2022, the company has reported a Consolidated Total Income of Rs 2834.72 Crore, up 5.01 % from last quarter Total Income of Rs 2699.39 Crore and up 12.78 % from last year same quarter Total Income of Rs 2513.45 Crore. Company has reported net profit after tax of Rs 54.21 Crore in latest quarter.

The company’s top management includes Dr.Azad Moopen, Mr.James Mathew, Mr.Chenayappillil John George, Dr.Layla Mohamed Hassan Ali Almarzooqi, Prof.Biju Varkkey, Mr.Wayne Earl Keathley, Mr.Daniel Robert Mintz, Mr.Shamsudheen Bin Mohideen Mammu Haji, Mr.Anoop Moopen, Mr.T J Wilson, Ms.Alisha Moopen, Mr.Sridar Arvamudhan Iyengar. Company has Deloitte Haskins & Sells as its auditors. As on 30-09-2022, the company has a total of 50 Crore shares outstanding.

Investment Rationale
Revenues are expected to increase by 1.7% QoQ to Rs 2,863 crore. GCC operations are expected to grow 2.1% QoQ to Rs 2,218 crore while the India business is likely to remain flat QoQ at Rs 726 crore. EBITDA is expected to see robust growth of 42.2% QoQ to Rs 454crore. EBITDA margins are likely to show an uptick of 450 bps QoQ to 15.80% due to likely improvement in margins for GCC hospitals.

Promoter/FII Holdings
Promoters held 37.88 per cent stake in the company as of 30-Sep-2022, while FIIs owned 2.6 per cent, DIIs 8.99 per cent.