5:1 Stock Split: Company Takes Over Operations of 189-Bed Super Specialty Hospital in Kerala with Revenue Sharing Agreement - FIIs Increase Stake!

5:1 Stock Split: Company Takes Over Operations of 189-Bed Super Specialty Hospital in Kerala with Revenue Sharing Agreement - FIIs Increase Stake!

Rakesh Deshmukh

The company’s shares have delivered an impressive return of over 40 per cent to its shareholders in just 3 months.

KIMS Swasatha Private, a wholly owned subsidiary of Krishna Institute of Medical Sciences Limited, has entered into a lease agreement for the land and hospital building, along with the operations and management of Sreechand Super Speciality Hospital, a 189-bed facility located in Kannur, Kerala. The hospital will be exclusively managed by KIMS, which will be responsible for ensuring its smooth and efficient operations. As part of the agreement, KIMS will pay 5 per cent of the total net revenue generated by Sreechand Super Speciality Hospital, with a minimum monthly guarantee of Rs. 25,00,000 (Rs. 15,00,000 under lease and Rs. 10,00,000 under the Operations and Management Agreement).

Krishna Medical Institution Ltd (KIMS) is a Small-Cap company. It is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana regarding patients treated and treatments offered. The company offers multidisciplinary healthcare services with primary, secondary, and tertiary care across tier-2 and tier-3 cities, and an additional quaternary healthcare facility in tier-1 cities.

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On June 28, the company announced a stock split in the ratio of 5:1, reducing the face value of shares from Rs 10 to Rs 2, for every share held, shareholders will receive five shares. It has fixed Friday, September 13, 2024, as the record date to determine the eligibility of shareholders for the stock subdivision/split.

On Friday, the shares of KIMS closed at around Rs 2655.95 per share on the BSE. The company’s current market capitalization stands at Rs 21,254.98 crore. Additionally, the shares have delivered an impressive return of over 40 per cent in just 3 months.

As per the Quarterly Results, in the Q1 FY25, KIMS recorded a revenue of Rs 688 crore compared to Rs 606 crore. The operating profit stood at Rs 179 crore. The net profit stood at Rs 95 crore compared to a profit of Rs 87 crore.  Looking at the annual performance, the company generated a revenue of Rs 2498 crore in FY24 compared to Rs 2198 crore representing a gain of 13.67 per cent. The operating profit for FY24 was Rs 648 crore with an operating profit margin of 26 per cent. The company reported a net profit of Rs 336 crore compared to a net profit of Rs 366 crore in FY23.

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Investors must keep this stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.

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