Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Union Budget
Budget 2011-2012 Home
Industry Expectations - Budget 2011-2012
Industry Reactions - Budget 2011-2012
Budget 2010-2011
Budget 2010-2011 Home
Industry Expectations - Budget 2010-2011
Industry Reactions - Budget 2010-2011
Contributor's Corner
Bonanza Portfolio
Hemant K Gupta
Krish Bhatt
S A A R T H I
Trinity Investments
Exchange Information
BSE 2009 Holidays
NSE 2009 Holidays
Investor Guide
Depository & Dematerialisation
Grievance Redressal
Investor Guide
SEBI
Trading of Securities
Transfer of Securities
Your Rights
Budget 2009-2010
Budget 2009-2010 Home
Industry Expectations - Budget 2009-2010
Industry Reactions - Budget 2009-2010
Interim Budget 2009-2010 Home
Industry Expectations - Interim Budget 2009
Budget 2008-2009
Railway Budget 2008-2009
Industry Expectations - Budget 2008
Union Budget 2008-2009
Highlights of Budget 2008-2009
Summary of Budget 2008-2009
Industry Reactions - Budget 2008
IPOs
Current IPOs
Past IPOs
IPO Subscription
Mutual Funds
Gold Exchange Traded Fund
MF Unique Holding
Forthcoming Dividends
ELSS Schemes Comparison
Tax Plans
New Fund Offers
Research
Arbitrages
Equity
Market Whispers
Tax Planning
Home
Equity Linked Savings Scheme
Post Office MIS
9% GOI Senior Citizens Savings Scheme
8% Savings (Taxable) Bonds
Kisan Vikas Patra
National Savings Certificate
Public Provident Fund
Research

| More

Fortis Healthcare - Balance sheet improving, valuations reasonable; upgrade to Hold - Anand Rathi

Posted On: 2013-02-13 20:21:57

Results in line with estimates. Fortis Healthcare's (Fortis) revenue grew 154.5% yoy to Rs. 15.4bn, better than our expected Rs. 14.9bn. Its reported EBITDA margin declined 380bps yoy to 9.9% (versus our estimated 10.3%) on payment of service fees to Religare Health Trust (RHT). The company reported exceptional gain of Rs. 9.7bn, pertaining to gain on dilution of stake in RHT. Adjusting for this gain, the company reported net loss of Rs. 433m.

Healthy growth across segments. Strong revenue growth was largely driven by 20% increase in revenue from India hospitals business with improved EBITDA margin of 15.8%. Domestic diagnostics business (Super Religare Laboratories) grew 12% yoy with 370bps yoy improvement in EBITDA margin to 10.3% (down ~400bps qoq). International business revenue came at Rs. 8.2bn, up 6.4% qoq. EBITDA margin in international business sustained at ~13%.

Our take. We believe that inflow of cash from dilution of stake in RHT, divestment of Dental Corp. subsidiary by Mar'13 and issue of equity shares through the IPP route would help the company strengthen its balance sheet substantially by bringing down D/E level to 0.5x by FY14e. Further, the proportion of revenue from India business would move up to 70%+ from ~50% currently post divestment of Dental Corp., which would bring focus back to India. We maintain revenue estimates, but lower PAT marginally to factor in higher service fees to RHT, which could hit EBITDA. Management focus is currently on strengthening balance sheet and no M&A is expected in near future, which is a positive in our view.

The stock is currently trading at EV/EBITDA valuations of 13.5x FY14e and 10.8x FY15e. We upgrade the stock to Hold from Sell on improving balance sheet and reasonable valuations. We also raise our target price to Rs. 118 (earlier Rs. 110), based on 14x FY14e EBITDA and Rs. 21 for stake in RHT. Risks. Delay in execution of expansion projects and integration of international operations.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

BUY Welspun India - Anand Rathi Retail Research
BUY Persistent Systems - Anand Rathi Research
Alembic Pharmaceuticals - Gets tentative approval from USFDA for Celecoxib: Angel Broking
Views on Tech Mahindra and Circle Health sign 10-year strategic deal: Angel Broking
World financial fears keep Asia firms in holding pattern
India Technology - Tapering growth and volatility weighing on valuations: Anand Rathi Financial Services
Views on Lupin - Board of Directors approve the Fund Raising: Angel Broking
Views on NPPA update: Angel Broking
Views on Aurobindo Pharma gets USFDA approval for Azithromycin: Angel Broking
Balance of Payments - FDI inflows at all-time high: Anand Rathi Financial Sercices
Angel Broking views on US opens probe against TCS, Infosys for H1-B visa violations
Views on SPARC Licenses XelprosTM (Latanoprost BAK-free) to Sun Pharma - Angel Broking
Views on Infosys Update: Angel Broking
Cipla - 4QFY2015 Result Update - Angel Broking
Action Construction Equipment - 4QFY2015 Result Update - Angel Broking
Views on Sun Pharma and AstraZeneca enter into distribution agreement for ticagrelor in India: Angel Broking
India Cements - 4QFY2015 Result Update - Angel Broking
Coal India - 4QFY2015 Result Update - Angel Broking
Larsen & Toubro - 4QFY2015 Result Update - Angel Broking
Gujarat Pipavav Port - 4QFY2015 Result Update - Angel Broking
Surya Roshni - 4QFY2015 Result Update - Angel Broking
Bajaj Electricals - 4QFY2015 Result Update - Angel Broking
Competent Auto - 4QFY2015 Result Update - Angel Broking
Views on Power Grid 4QFY2015 Results - Angel Broking
Views on IPCA Labs 4QFY2015 Results - Angel Broking
Views on Cipla 4QFY2015 Results - Angel Broking
Views on Sun Pharma 4QFY2015 Results - Angel Broking
Views on India Cement 4QFY2015 Results - Angel Broking
Views on Ramco Cement 4QFY2015 Results - Angel Broking
Views on Mahindra & Mahindra 4QFY2015 Results - Angel Broking
Tree House - 4QFY2015 Result Update - Angel Broking
Transport Corporation of India - 4QFY2015 Result Update - Angel Broking
Views on Coal India 4QFY2015 Results - Angel Broking
Tech Mahindra - 4QFY2015 Result Update - Angel Broking
Setco Automotive - 4QFY2015 Result Update - Angel Broking
Views on Bank of India 4QFY2015 Results - Angel Broking
Views on Gujarat Pipavav Port 4QFY2015 Results - Angel Broking
Views on Indoco Remedies 4QFY2015 Results - Angel Broking
MBL Infrastructures - 4QFY2015 Result Update - Angel Broking
Views on Tata Motors 4QFY2015 Results: Angel Broking
Views on Tech Mahindra 4QFY2015 Results - Angel Broking
Inox Wind - 4QFY2015 Result Update - Angel Broking
TVS Srichakra - 4QFY2015 Result Update - Angel Broking
Bajaj Auto - 4QFY2015 Result Update - Angel Broking
Views on CEAT 4QFY2015 Results: Angel Broking
Eros International - IDBI capital Markets Report - Best period for content monetization yet to come; BUY
Ambit Report on Greaves Cotton Limited
Siyaram Silk Mills - 4QFY2015 Result Update - Angel Broking
Navin Fluorine International - Company Update - Sushil Finance
MM Forgings - 4QFY2015 Result Update - Angel Broking


  
Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2014