Aster DM Health gains on closing loss-making Philippines clinics

Aster DM Healthcare advanced 1.77% to Rs 155 after the company decided to close the operations of its loss-making clinics in Philippines by 31 December 2019.

Aster DM Healthcare in an exchange filing after market hours on Friday, 13 December 2019 said that its subsidiary operated three clinics in Philippines.

The management entered into an agreement for asset sale of two of its clinics with Aventus Medical Care INC. on 12 December 2019. It is estimated to close the operations of all the clinics by 31 December 2019.

The revenue from Philippines-based unit was Rs 5.27 crore, which represents 0.07% of the total revenue of the company. The net loss of the subsidiary is Rs 8.18 crore while the net worth is Rs (17.99) crore. The announcement was made post market hours on Friday, 13 December 2019.

On technical front, the stock trades above its 50 and 200 days simple moving average placed at 139.10 and 136.56 respectively.

The stock's RSI (relative strength index) stood at 61.12. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

On a consolidated basis, the company's net profit fell 71.7% to Rs 3.12 crore on a 13.6% increase in the net sales to Rs 2086.88 crore in Q2 September 2019 over Q2 September 2018.

Aster DM Healthcare is one of the largest private healthcare service providers operating in multiple GCC states and is an emerging healthcare player in India.

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