Small-cap hospital stock skyrockets to 52-Week high with groundbreaking MoU! Do you own it?
The stock has given multibagger returns of more than 140 per cent in the last 3 years.
In early trade on June 28, 2023, Shalby Limited shares surged 2.47 per cent, stock hits fresh 52-week high of Rs 180.50 per share on BSE. the scrip witnessed massive spurt in volume by more than 1.10 times.
The company announced an agreement with Divine Super Specialty Hospital in Ranchi to establish a franchise-owned-Shalby-managed (FOSM) hospital in the region. Divine Super Specialty Hospital has 60 beds available.
According to the terms of the agreement, Shalby will provide its knowledge, operational assistance, specialist doctor services, supply chain, and learning and development support to aid in the hospital's foundation and seamless operation. Divine Super Specialty Hospital (Franchisee) will be in charge of the hospital's daytoday activities.
"Ranchi has witnessed rapid growth in recent years, creating a demand for high‐quality healthcare services. Our partnership with Divine Super Specialty Hospital, will leverage our extensive experience to meet this demand effectively," stated by the company in regulatory filings.
Moreover, the company added, "This collaboration aligns with our long‐term vision of expanding our presence and making quality healthcare accessible to a wider population."
With this transaction, Shalby continues the pattern of hospital capacity expansion as it seeks to rein in the high demand for healthcare services. Many other hospitals are likewise investing aggressively in order to extend their products, expand into tier II and tier III locations, and expand their capabilities.
Furthermore, the stock's gains were boosted by the bullish mood around hospital companies as a result of their strong growth prospects, substantial capex, and resilient demand.
In India, Shalby Ltd works in the healthcare delivery sector. It has a network of multi-specialty hospitals across India. The company's business is to provide tertiary and quaternary healthcare services to patients in a variety of specialisations such as orthopaedics, complex joint replacements, cardiology, neurology, cancer, renal transplantations, and so on.
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In terms of financial performance, the company has reported positive numbers for FY23. The stock has witnessed significant buying activity as it has given returns of more than 65 per cent in just 1 year moreover the stock has given multibagger returns of more than 140 per cent in the last 3 years. Investors should keep an eye on this small-cap hospital stock.