SP Tulsian of sptulsian.com feels that Indraprastha Medical Corporation can move to about Rs 40 maybe in six months. "It has 700 beds hospital in Delhi, which is one of the largest hospitals in the country and they have the capacity to expand to 1,000 beds as well," he adds.
SP Tulsian of sptulsian.com told CNBC-TV18, "Indraprastha Medical Corporation has been gradually improving. This is a joint venture or maybe a public-private partnership (PPP) project where 26 percent is held by the government of India and 25 percent is held by Apollo Hospital. It has 700 beds hospital in Delhi which is one of the largest hospitals in the country and they have the capacity to expand to 1,000 beds as well."
He further added, "If I go by their earnings, the Q1 EPS has been at about more than Re 1 and FY14 should be able to give them an EPS of close to Rs 4.50 because the company though not improving so much on the topline because of the bad constraint, they are in the process of raising the bed capacity from 700 to 1,000 but their margins have been improving. They have 52 specialties or services available under one roof, which is not available anywhere practically in the country. So that is the advantage with them."
"If you take the EPS of Rs 4.50, even the dividend distribution has been good of 16 percent for FY13. So the company which is now ruling at around Rs 33 can move to a level of about Rs 40 maybe in six months or so," he said.
Disclosure: No holding or interest in the above stock.