IIFL Securities Stock Idea: Buy Fortis Healthcare with Target Rs 454
IIFL Securities initiated coverage on Fortis Healthcare with a buy rating and a target price of Rs 454, implying an upside potential of around 3.5%. The brokerage firm believes that the company's strong brand recognition, presence in various regions, and focus on premium healthcare services positions it well for long-term growth. IIFL Securities also highlights Fortis Healthcare's efforts to improve operational efficiency and expand its presence through acquisitions as key factors driving its positive outlook. At the current market price of Rs 438.45, the stock offers a favorable entry point for investors seeking exposure to the healthcare sector.
About Fortis Healthcare:
Fortis Healthcare Limited is a leading healthcare provider in India with a network of hospitals, diagnostics and day care centres across the country. The company has a presence in key cities including Mumbai, Delhi NCR, Bangalore, Chennai, Kolkata and Hyderabad. Fortis Healthcare offers a comprehensive range of healthcare services across specialties such as cardiology, neurology, nephrology, orthopedics, oncology, gastroenterology and emergency care. The company also provides preventive health check-ups, executive health check-ups and wellness programs.
52 Week Price Trend:
Fortis Healthcare (NSE: FORTIS), a leading Indian healthcare provider, is currently trading at Rs 438.45. The stock has been range-bound in recent months, with a 52-week high of Rs 469.7 and a 52-week low of Rs 245.4. The company's financial performance has been mixed over the past year, with revenue growth offset by rising costs. Analysts are cautiously optimistic about the stock's prospects, citing the company's strong brand recognition and expanding presence in the Indian healthcare market. However, concerns remain about the competitive landscape and the company's ability to execute its growth plans.
Stratzy's MOST Analysis:
Fortis has received a BB rating from Stratzy's MOST framework, indicating a medium level of fundamental risk. This assessment is based on an evaluation of the company's management, outlook, safety, and trend. Specifically, Fortis exhibits strengths in management, with capable leadership and a track record of effective decision-making. While the company's safety and trend pillars are also considered sound, its outlook and management practices are seen as areas for improvement. Overall, the BB rating suggests that Fortis is a generally well-managed company with some room for growth in terms of risk management and long-term planning.
Company's Fundamentals:
Fortis Healthcare's stock PE of 60.64 indicates that investors are willing to pay 60.64 times the company's earnings per share for its stock. The PB ratio of 4.27 suggests that the stock is valued at 4.27 times the company's book value per share. The dividend yield of 0.23% represents the annual dividend payment as a percentage of the current stock price, indicating that investors receive a relatively low return in dividends from the company.
Fundamental and Technical information provided in this blog were last updated on 13 Apr, 2024
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