Fortis Healthcare shares soared 4.5 percent to an all-time high of Rs 563 on August 30, fuelled by a spike in trading volumes in the counter. Heavy trading volumes were seen in the counter as 26 lakh shares changed hands on the exchanges so far, significantly higher than the one-month daily traded average of 20 lakh shares.
At 11.18 am, shares of Fortis Healthcare were trading at Rs 557.45 on the NSE, still up 3.5 percent despite coming off the day's high. Shares of the company have gained 11 percent in the past month.
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Fortis Healthcare has reported a 40 percent growth in its consolidated net profit at 174 crore for the June quarter, driven by robust performance in its flagship hospital business. Revenue grew to Rs 1,859 crore, up from Rs 1,657 crore in the previous year.
The company is also advancing its plan to add nearly 700 beds this fiscal across major facilities, including those in Faridabad, Anandpur, Shalimar Bagh, and Noida. Additionally, Fortis will soon commission a new 350-bed facility in Manesar, as noted by chairman Ravi Rajagopal.
Brokerage firm HDFC Bank feels capacity expansion, growth in the hospital sector, enhanced medical infrastructure, and a rise in medical tourism can significantly boost Fortis' long-term revenue potential.
The firm anticipates sustained strong growth in the hospital business due to capacity optimisation, improved case mix, better occupancy rates, and increased ARPOB (Average Revenue Per Occupied Bed).
Meanwhile, Elara Capital also believes that the company's high earnings growth from brownfield expansion and margin improvement in the hospitals segment justify its high multiples.
HDFC Securities also suggests investors to buy the stock in the band of Rs 549-558 and add more on dips around Rs 491. The brokerage expects Fortis Health's stock price to swell up to Rs 649 in the bull case scenario over the next 2-3 quarters and Rs 607 in the base case scenario.
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