27 Nov , 2024 By : Debdeep Gupta
Aster DM Healthcare stock witnessed strong buying action on November 27, surging as much as 5 percent in early trade after the company announced plans to acquire the remaining 13 percent stake in Kolhapur-based Aster Aadhar Hospital.
With this acquisition, Aster DM Healthcare will increase its stake in the target company to 100 percent, up from the 87 percent it previously held. The transaction will be executed in two tranches, with an expected completion date of December 31.
At 09.45 am, shares of Aster DM Healthcare were trading at Rs 453 on the NSE.
In a bid to expand geographical presence into tier-II and tier-III cities to attract growing demand, most hospitals are undertaking the brownfield route for capacity expansion in hopes of a quicker turnaround.
Aster Aadhar Hospital in Kolhapur comes with a facility offering 254 beds and over 25 specialties. The acquisition will further Aster DM's goal to meet the growing demand for healthcare in India. The management also remains confident of achieving a revenue CAGR of 18-20 percent year-on-year over FY25-29 for its India business, driven by increased occupancy and capacity expansion.
The company also plans to increase its bed capacity to nearly 6,800 by the financial year 2027 by adding another 1,800 beds. In addition to that, Aster DM also remains focused on niche specialties to further improve its ARPOBs (Average Revenue Per Occupied Bed).
The company had also reported strong earnings for the September quarter, marked by a twofold surge in net profit to Rs 105 crore. Revenue also rose 17 percent on year to Rs 1,086 crore while the EBITDA margin swelled up nearly 500 basis points from last year to 20.24 percent.
The robust performance was driven by better ARPOBs which grew to Rs 43,000 from the Rs 38,700 seen a year ago. Occupancy levels also increased to 72 percent in Q2 from 70 percent in the base period.
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