This Small-Cap Hospital Chain Expands with 60 Per Cent Stake Acquisition; FIIs & DIIs Increased Their Stake in Q3 FY25!
With a PE ratio of 31.4x, the company trades at a discount compared to the industry PE of 52.7. The company has ROCE of 23.9 per cent and ROE of 21.66 per cent.
Yatharth Hospital and Trauma Care Services Limited has successfully acquired a 60 per cent equity stake in M/s. MGS Infotech Research and Solutions Private Limited. This acquisition marks a significant milestone in the hospital's expansion strategy, strengthening its presence in the healthcare sector, particularly in the Faridabad region. The company has finalized all necessary formalities to transfer the equity shares, gaining a controlling interest in the newly acquired entity. The new hospital, situated in Sector 20B, Faridabad, Haryana, is expected to commence operations soon. This move aligns with Yatharth Hospital's broader expansion strategy, which focuses on both greenfield and brownfield projects to enhance healthcare services across North India.
Yatharth Hospital is known for its comprehensive multi-care hospitals across Noida, Greater Noida, and Noida Extension in Uttar Pradesh. The recent acquisition further extends its reach into the NCR region, reinforcing its position among the leading healthcare providers in North India. With seven hospitals under its management and a total bed capacity exceeding 2,100, the hospital chain has established itself as a key player in the industry. Recognized as the 8th and 10th largest private hospital in the NCR, Yatharth Hospital continues to focus on advanced medical technologies, oncology, and robotic surgeries.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
As of March 28, 2025, Yatharth Hospital’s stock is trading at Rs 424.7, with a 52-week high of Rs 686.85 and a 52-week low of Rs 359.7. The company has a market capitalization of Rs 4,092 crore and has delivered a one-year return of 1.77 per cent. Yatharth Hospital has strategically utilized proceeds from its IPO, issued in August 2023, raising approximately Rs 610 crore to support its expansion initiatives.
Yatharth Hospital has demonstrated consistent operational performance, with an average revenue per occupied bed of Rs 30,597 in the first half of FY25 and an occupancy rate of 61 per cent. The hospital chain has strategically directed its capital expenditures towards both organic and inorganic growth, focusing on oncology and robotic surgeries. The Noida Extension Hospital has been a key center for advanced medical procedures, leveraging cutting-edge technology to improve patient outcomes.
In addition to the recently acquired Faridabad hospital, Yatharth Hospital is expanding its footprint with new facilities in Model Town, Delhi. These expansions align with the company’s commitment to enhancing healthcare services and accessibility in the region. The investment in healthcare acquisition and hospital expansion underscores Yatharth Hospital’s dedication to strengthening its network and meeting the growing healthcare demands in North India.
As of December 2024, the shareholding pattern stood as follows: Promoters held 61.44 per cent, FIIs held 9.78 per cent, DIIs held 11.50 per cent, and the public held 17.27 per cent. Compared to the previous quarter, promoter shareholding declined from 66.54 per cent to 61.44 per cent, while FIIs and DIIs increased their stake from 6.28 per cent to 9.78 per cent and 6.97 per cent to 11.50 per cent, respectively. The public shareholding decreased from 20.20 per cent to 17.27 per cent.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 219.16 crore, reflecting a YoY growth of 31.40 per cent compared to Rs 166.79 crore in December 2023. The operating profit stood at Rs 54.92 crore, marking an 18.29 per cent increase from Rs 46.43 crore in the same quarter last year. The profit after tax (PAT) grew by 3.39 per cent to Rs 30.49 crore from Rs 29.49 crore in December 2023.
In FY24, the company posted a revenue of Rs 634.63 crore, registering a 32.86 per cent growth compared to Rs 477.67 crore in FY23. The net profit for the year stood at Rs 114.48 crore, up 74.06 per cent from Rs 65.77 crore in the previous financial year.
With a PE ratio of 31.4x, the company trades at a discount compared to the industry PE of 52.7. The company has ROCE of 23.9 per cent and ROE of 21.66 per cent.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.