Mehabe score: 4 G Factor: 7 Piotski Score: 5 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 7 and Piotski score of 5.
Description
FHL was incorporated in February 1996. The company’s first healthcare facility became operational in Mohali, Punjab in 2001. It is a leading integrated healthcare service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities. Currently, the company operates its healthcare delivery services in India, Nepal, Dubai and Sri Lanka with 36 healthcare facilities with approximately 4,000 operational beds.
Main Points
The erstwhile promoters, Shivender Singh and Malvinder Singh who started the company in 1996 owned a 34% stake in Fortis but due to huge personal debts and litigations, their shareholding reduced to less than 1%.Site:FORTISMain Symbol:FORTIS
Stock trades at 239.0, above its 50dma 229.01. It also trades above its 200dma 189.58. The stock remains bullish on techicals
The 52 week high is at 253.90 and the 52week low is at 121.00
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 2.95 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -0.82% over past five years.
– has a low return on equity of -1.91% for last 3 years.
Competition
– The industry trades at a mean P/E of 42.6x. Max Healthcare trades at the industry’s max P/E of 547.4x. FORTIS trades at a P/E of x
– Industry’s mean G-Factor is 5.0 while the mean Piotski score is 9.0. FORTIS has a G-Factor of 7 and Piotski scoreof 5.
– Average 1 month return for industry is 6.3%. The max 1- month return was given by Max Healthcare: a return of 16.3 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1252.0 cr compared to Rs 1113.0 cr for period ended Mar 2020, a rise of 12.5%
Operating Profits reported at Rs 197.0 cr for period ended Mar 2021 vis-vis 126.0 for period ended Mar 2020 .
Operating Margins expanded 441.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.57 compared to Rs 0.4 for previous quarter ended Dec 2020 and Rs -0.59 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4030.0 cr for period ended Mar 2021 vis-vis sales of Rs 4632.0 cr for the period ended Mar 2020, a fall of 14.9%. The 3 year sales cagr stood at -4.0%.
Operating margins shrank to 10.0% for period ended Mar 2021 vis-vis 13.0% for period ended Mar 2020, contraction of 300.0 bps.
Net Profit reported at Rs -110.0 cr for period ended Mar 2021 vis-vis sales of Rs 58.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 486.0 cr for period ended Mar 2021 vis-vis Rs 172.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 95% on a 1 Year basis vis-vis a return of 19% over the last 3 Years. – The compounded sales growth on a TTM bassis is -13% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is -287% vis-vis a compounded profit growth of 24% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has fallen for the period ended Mar 2021. The Mar 2021 fii holding stood at 34.42% vis-vis 36.83% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 20.84% vis-vis 19.81% for Dec 2020
Conclusion
– – Stock is trading at 2.95 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -0.82% over past five years.
– has a low return on equity of -1.91% for last 3 years.
