Aster DM Healthcare stock skyrockets 14% after turnaround in Q2FY25

Aster DM Healthcare stock skyrocketed 13.90 per cent at Rs 457.90 a piece on the NSE in Thursday’s intraday deals. This came after the company posted strong quarterly earnings for the second quarter of the financial year 2024-25 (Q2FY25). 

 

The hospital chain reported a net profit of Rs 96.84 crore in the September quarter, marking a significant turnaround from a net loss of Rs 30.79 crore in the same period last fiscal year. Revenue also grew by 16 per cent year-on-year to Rs 1,086 crore in Q2 FY25, compared to Rs 934 crore in the corresponding period last year.

 

Operational performance improved, with earnings before interest, tax, depreciation and amortisation (Ebitda) margin expanding to 21.4 per cent in Q2FY25, up from 16.8 per cent in the year-ago period. 

 

Further, the hospital chain said that it plans to add over 1,800 additional beds by FY27, including the new Aster Women and Child facility in Hyderabad, which will feature 300 beds. 

 

“As we expand, with plans to surpass 6,800 beds by FY27, Aster DM Healthcare is well-positioned to meet the increasing demand for advanced healthcare in India. I am pleased to share that 9 Aster Hospitals are now accredited in the new Digital Standards Published by NABH signifying our commitment to Digital Transformation,” said Dr Azad Moopen, Founder and Chairman, Aster DM Healthcare.

 

In the first half of FY25, the company's payor mix improved, with insurance business contributing 30 per cent, despite a decline in scheme business. The flagship Aster Whitefield hospital in Bangalore achieved nearly 67 per cent occupancy levels, with an average revenue per occupied bed (ARPOB) of Rs 70,000 in the first half of FY25 (H1FY25).

 

Additionally, the core hospital business delivered an operating Ebitda margin of 22.4 per cent in H1 FY25, up from 19.1 per cent in H1FY24.

 

The company has a total market capitalisation of Rs 22,233.33 crore. Its shares are trading at a price to earnings multiple of 59.42 times.

 

At 10:39 AM, the stock price of the company was up 10.72 per cent at Rs 445.10 a piece on the NSE. By comparison, the NSE’s Nifty50 fell 0.03 per cent to 24,428.15 level.