Stock market today, stock market news, buzzing stocks: Fortis Healthcare stock on the first trading day of 2024 gained by as much as 0.86 per cent to Rs 423.9, notching a fresh all-time high even as the broader markets continue to decline for the second day in a row.

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The gains in the stock were propelled after brokerage firm Nomura retained its ‘buy’ call on the counter, with a raised target of Rs 475 per share as against the earlier Rs 388.

The brokerage is of the view that adequate levers are in place for delivering margin expansion. Nomura estimates the hospital segments' EBITDA margin to improve to 20.2 per cent in FY25 from 16.9 per cent in FY23. Also, the brokerage sees improvement in average revenue per operating bed, or ARPOB, growth over the medium term.

Additionally, while the valuation of the company has improved in line with the sector rating, it is still cheaper than peers, notes the brokerage.

On the last trading day of CY23, the stock ended over 3 per cent higher at Rs 419.2 per share on the NSE.

Further, stocks in the healthcare and diagnostic space are likely to see momentum as there is an increase in COVID in a few parts of the country.

In the last three years, the stock has delivered a healthy 168 per cent return.

Fortis Healthcare Limited is an integrated healthcare delivery service provider. The company is engaged in establishing and administering hospitals, diagnostic centres, and research centres.