Fortis Healthcare Ltd. share price target

points. FHL has a long and established track record having favourable hospital maturity mix profile with large network of healthcare facilities. It has presence across various healthcare verticals, including secondary, tertiary care and diagnostics. Fortis has operations in India, United Arab Emirates (UAE) & Sri Lanka. With its...

Large hospital chain at a significant discount to market leader Apollo Hospitals

Fortis Healthcare Limited is a leading integrated healthcare delivery service provider in India. The healthcare verticals of the company primarily comprise of hospitals, diagnostics and day care specialty facilities. Currently, the company...

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...