Top Stocks Today : IIFL Securities has Buy call on Fortis Healthcare - May 22

On May 22, IIFL Securities issued a buy call on Fortis Healthcare, setting a target price of Rs 490. The recommendation was based on the company's strong financial performance, with revenue growth of 16% and EBITDA margin expansion of 200 basis points in FY23. Fortis Healthcare's current market price stands at Rs 476.5, indicating a potential upside of approximately 2.6%. The brokerage firm attributed its positive outlook to the company's focus on core operations, cost optimization, and its strategic partnership with Manipal Hospitals.

About Fortis Healthcare:

Fortis Healthcare Limited is a leading integrated healthcare provider in India. It has a network of 36 hospitals, 311 diagnostic centres, and 200+ primary care clinics across India. The company offers a wide range of healthcare services, including cardiovascular care, neurology, oncology, orthopedics, and renal care. Fortis Healthcare is committed to providing high-quality, affordable healthcare to all sections of society. It is also actively involved in corporate social responsibility initiatives, such as providing free healthcare to underprivileged communities.

52 Week Price Trend:

Fortis Healthcare (NSE: FORTIS) is currently trading at Rs 476.5, close to its 52-week high of Rs 469.7. This reflects a significant recovery from its 52-week low of Rs 245.4. The recent surge in Fortis' stock price is attributed to positive developments related to its acquisition by Malaysia's IHH Healthcare. IHH is expected to invest up to Rs 4,000 crore in Fortis, which will help reduce its debt and improve its financial health. Additionally, the company's recent financial results have shown signs of improvement, with a rise in revenue and profitability. These factors have contributed to the positive sentiment surrounding Fortis Healthcare, driving its stock price higher.

Stratzy's MOST Analysis:

Based on Stratzy's MOST framework, which evaluates Management, Outlook, Safety, and Trend, FORTIS has received a rating of BB. This rating indicates a Medium Fundamental Risk. According to MOST, FORTIS's management, outlook, safety, and trend have all been assessed, with the resulting score of BB indicating that the company faces moderate risks in these areas. This rating provides investors with valuable insights into FORTIS's overall financial health and stability.

Company's Fundamentals:

Fortis Healthcare (NSE: FORTIS) is a leading healthcare provider in India with a strong presence across multiple segments, including hospitals, diagnostics, and medical education. As of the latest financial data available, the company has a stock PE (Price-to-Earnings) ratio of 60.64, indicating that investors are paying around 60.64 times the company's annual earnings to own its shares. The PB Ratio (Price-to-Book) of 4.27 suggests that the market value of FORTIS shares is 4.27 times the company's book value per share, a measure of its net assets. The Dividend Yield of 0.23% represents the annualized dividend income an investor can expect to receive per share, based on the current share price and dividend payout. These financial metrics provide insights into the company's valuation and income-generating capacity, helping investors make informed investment decisions.

Fundamental and Technical information provided in this blog were last updated on 22 May, 2024

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