Stock hit back-to-back 52-week high: One of largest corporate healthcare group announces stock split from Rs 10 to Rs 5
The company, with a market capitalization of Rs 20,928.5 crore, is trading at 11.4 times its book value
The Board of Directors of Krishna Institute of Medical Sciences Limited has decided to sub-divide/ stock split each fully paid-up equity share with a face value of Rs 10 into five fully paid-up equity shares with a face value of Rs 2 each. These new shares will rank equally with the existing shares. The record date for determining the eligibility of shareholders for this sub-division/split is Friday, September 13, 2024.
The Krishna Medical Institution Ltd (KIMS) was established in 1973 and has since grown into a prominent healthcare provider in Andhra Pradesh and Telangana. KIMS offers a wide range of medical services, catering to patients at various levels of care, from primary to quaternary. The company operates a network of 12 multi-speciality hospitals under the KIMS Hospitals brand, with a combined bed capacity of over 3,900.
This substantial expansion from approximately 3,000 beds in FY24 demonstrates KIMS' commitment to meeting the increasing healthcare needs of the region. One of KIMS' most notable facilities is the Secunderabad Hospital, which is one of the largest single-location hospitals in India with around 1,000 beds. Recognizing the growing healthcare demands in Bengaluru, KIMS has entered into a lease agreement to establish a new Super Specialty Hospital in the city. This 350-bed facility is expected to be operational in the second half of FY25, further solidifying KIMS' position as a leading healthcare provider in the southern region of India.
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The company, with a market capitalization of Rs 20,928.5 crore, is trading at 11.4 times its book value. Although the company has been consistently profitable, it has not paid out any dividends to its shareholders. This suggests that the company might be capitalizing on the interest cost, potentially indicating a focus on growth and reinvestment rather than immediate returns to investors. On Wednesday, shares of KIMS surged 3.55 per cent and made a new 52-week high of Rs 2,655.15 per share from its previous closing of Rs 2,564.15 per share. In the recent trading sessions, the stock has been hitting back-to-back 52-week highs and investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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