Aster DM Shares Fall Most In Five Months As Q4 Profit Declines
The company said it is in the process of reviewing proposals from potential buyers for the sale of its GCC region business.
Shares of Aster DM Healthcare Ltd. fell the most in over five months on Friday after its profit declined in the fourth quarter amid plans to sell its GCC business.
The company's board is in the process of reviewing proposals from potential buyers for the sale of the "Gulf Co-operation Council' region business, the company said in an exchange filing. The binding bids are likely to be received by June's end, it said, adding that the disclosures will be made subject to the board's approval.
The company's net profit fell 25% year-on-year to Rs 171 crore in the quarter ended March, according to an exchange filing. Profit declined due to an increase in interest on lease liabilities, the company said in its investors' presentation. The increase in depreciation on 'Right of Use Assets" also dragged down the profit in the fourth quarter.
Revenue from GCC for the said quarter includes Covid testing and vaccination income of Rs 6 crore, compared to Rs 217 crore in the same period of the previous fiscal.
Aster DM Healthcare Q4 FY23 (Consolidated, YoY)
Revenue up 20% at Rs 3,262 crore.
Ebitda up 9% at Rs 506 crore.
Ebitda margin at 15.5% vs. 16.8%
Net profit down 25% at Rs 171 crore.
Shares of Aster DM Healthcare fell 3.90% to Rs 267.3 apiece as of 12:16 p.m. on Tuesday, compared to a 0.61% advance in the benchmark Nifty 50. The stock declined as much as 5.99% intraday, falling the most in over five months since Dec. 23, 2022.
The total traded volume so far in the day stood at 5.3 times its 30-day average. The relative strength index was 64.
Out of the nine analysts tracking the company, eight maintain a 'buy' rating and one recommends a 'hold' on the stock, according to Bloomberg data.
The average 12-month consensus price target implies a potential upside of 3%.