IIFL Securities's Stock Idea: Buy Fortis Healthcare with Target Rs 575
On August 23, IIFL Securities issued a "buy" recommendation for Fortis Healthcare, with a target price of Rs 575, representing a potential upside of 3.9% from the current market price of Rs 553.1. The recommendation is based on the brokerage firm's expectation of improved performance in the coming quarters, driven by revenue growth and cost optimization measures. Fortis Healthcare is a leading healthcare provider in India, operating a network of hospitals, diagnostics centers, and day care facilities.
About Fortis Healthcare:
Fortis Healthcare Limited is a leading integrated healthcare provider in India. It offers a comprehensive range of healthcare services, including hospitals, diagnostics, and day care specialty facilities. Fortis has a network of over 60 healthcare facilities, including over 30 hospitals, across India, and overseas. It is a leading provider of cardiac care, oncology, renal care, neurology, and emergency care. Fortis is committed to providing quality healthcare, with a focus on patient safety and satisfaction.
52 Week Price Trend:
Fortis Healthcare's (NSE: FORTIS) current market price (CMP) of Rs 553.1 falls within its 52-week range of Rs 245.4 (low) and Rs 469.7 (high). This indicates that the stock has been trading at a premium compared to its lowest point over the past year but below its highest value. The stock's performance has likely been influenced by factors such as the company's financial performance, industry trends, and overall market conditions. Investors should consider these factors and conduct thorough analysis before making investment decisions.
Stratzy's MOST Analysis:
Stratzy's MOST Framework assigns FORTIS a "BB" rating, indicating Medium Fundamental Risks. This rating is based on the company's performance across four pillars: Management (M), Outlook (O), Safety (S), and Trend (T). The rating suggests that FORTIS has potential areas of concern or risk in one or more of these areas, but the overall risk is not excessive. Investors should consider these risks carefully before making investment decisions.
Company's Fundamentals:
Fortis Healthcare (NSE: FORTIS) exhibits key financial ratios that provide insights into its valuation and performance. The stock's Price-to-Earnings (PE) ratio of 60.64 indicates that investors are willing to pay 60.64 times the company's annual earnings per share. The Price-to-Book (PB) ratio of 4.27 suggests that the stock's market value is 4.27 times its book value, implying a potential premium over its assets. Notably, the stock offers a modest Dividend Yield of 0.23%, indicating a low level of dividend income relative to its share price. These ratios provide a comprehensive perspective on Fortis Healthcare's valuation and profitability, enabling investors to make informed decisions.
Fundamental and Technical information provided in this blog were last updated on 23 Aug, 2024
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