Fortis Healthcare Ltd. share price target

Fortis Healthcare (FORH) reported 2QFY18/3QFY18 revenue of INR12b (flat YoY)/INR11.2b (-1.1% YoY), with EBIDTA margin of 8.9%/4.6%. Hospital business revenue came in at INR9.7b (-0.6% YoY)/INR9b (-0.9% YoY) for2QFY18/3QFY18, with EBITDA margin of 8.5%/5.5%. SRL reported revenue ofINR2.2b (+5.2% YoY)/INR2.1b (+10% YoY), with EBITDA margin of 23.2%/18.4%.2Q numbers were in line, but 3Q numbers missed our expectations. FORH reported a loss of INR236m/INR191m in 2Q/3QFY18.

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Fortis (FORH) plans to acquire all the assets of RHT for INR46.5b. Net outflow for the company will be ~INR36b, as it owns ~30% stake in RHT (worth ~INR10-10.5b). RHT asset acquisition is expected to be value-accretive to the tune of ~INR3040/share. We maintain our Buy rating on FORH, with an SOTP-based TP of INR185/share. The court case between promoters and Daichi remains a key overhang on the stock. FORH has announced that it plans to acquire the entire portfolio of assets of Religare Health Trust (RHT), listed in Singapore, at an enterprise value of INR46.5b (including debt of INR11.52b). FORH and RHT have entered into an...

Q1FY18 profitability was impacted with consolidated EBITDAC margin down by 200 bps to 14% due to control on stent pricing, higher marketing spends by SRL and continued effects of demonetization.

The Fortis network includes multi-speciality hospitals and super-speciality centres providing comprehensive tertiary and quaternary healthcare to patients across specialities such as cardiac care, orthopaedics, neurosciences, oncology, renal care, gastroenterology and mother & child care. Fortis runs one of the largest cardiac programmes in the world. It also has one of...

Q3FY17 consolidated revenue at Rs 11 bn (up 10% YoY) driven by 9% YoY growth in hospital business at Rs 9.2 bn and 11% YoY growth in diagnostics business (SRL) at Rs 2 bn. EBITDA increased to Rs 1.1 bn mainly due to lower service fee (consolidation of FHTL). Consolidated PBT before forex and excepti..