Gorashekhar told CNBC-TV18, "We are recommending a sell on Fortis Hospitals with a stoploss of Rs 176 and a target of Rs 170. We feel Fortis Hospitals has a strong business model but in the immediate short-term there are not many triggers for the stock typically because their acquisition of Wockhardt Hospitals has got completed even a rights issues has got completed. So in the immediate short-term we think the stock would remain range bound primarily because earnings from these initiatives are yet to get integrated into the company and typically the stock will remain range bound. Hence we rate it as a technical sell."
He further added, "If the investor can wait for a year then definitely I think investor could get an upside of at least 25-30% because healthcare as a sector in India is a virgin area and Fortis being now a Pan India player definitely for a longer-term horizon the returns could be positive if one takes a kind of a six-twelve months view."
Fortis Healthcare touched an intra day high of Rs 175.65 and an intra day low of Rs 171.50. At 13:53 hrs the share was quoting at Rs 172.80, down Rs 0.85, or 0.49%. The company's trailing 12-month (TTM) EPS was at Rs 0.39 per share.
