Aster DM share price up 10% on heavy volume, nears 52-week high in weak mkt

Aster DM share price hit an intraday high of ₹500.25 per share. The stock inched closer to its 52-week high level of ₹558.3, which it touched on April 15, 2024

Aster DM share price surged over 10 per cent in Friday's trade, sharply defying the otherwise weak stock market sentiment. The stock of the hospital chain zoomed 10.3 per cent on the BSE, in the intraday trade, hitting a high of ₹500.25 per share. The stock inched closer to its 52-week high level of ₹558.3, which it touched on April 15, 2024.

 

The rally in Aster DM shares was supported by heavy volumes on the exchange. Till 2:15 PM, 2.54 million shares had changed hands on the counter on the BSE, sharply higher than the stock's two-week average of 23,000 shares. Earlier in the day, a bulk deal of 1.7 million shares, at a price of ₹455.3 per share, occurred on the exchange.

 

Aster DM Healthcare is one of the leading healthcare players in the GCC and India. Headquartered in Dubai, Aster DM Healthcare has its registered office at Bengaluru in Karnataka, India. As per its website, Aster DM India has 19 hospitals, 13 clinics, 217 pharmacies, and 243 labs.

 

On March 27, 2025, Aster DM India informed the stock exchanges that the company has entered into a loan settlement and Call Payment agreement with Alfaone Medicals Private Limited to strengthen the capital structure, improve profitability, and facilitate business growth.

 

"We wish to inform you that the proposed transaction concerns the call made by the board of AMPL on the remaining amount in respect of partly paid OCRPS issued by AMPL, which will be settled in part: (i) against the loans provided by Aster to AMPL of an amount of ₹23.78 crore; and by way of fresh infusion of capital of ₹47.56 crore," it said in the exchange filing.

 

The transaction involves fresh infusion of capital funds into AMPL, it said.

 

Back in 2021, Aster DM Healtcare had signed a share subscription agreement to acquire 15.98 per cent of equity share capital of Alfaone Medicals Private Limited. Later, in December, 2024, it informed the exchanges that it has agreed to convert the loan into equity shares and Optionally Convertible Redeemable Preference Shares (OCRPS).

 

The company had entered into a Loan Settlement Agreement and an Amended and Restated Shareholders' Agreement on December 31, 2024, with Alfaone Medicals Private Limited, Sharmila Surana, Jayesh Kothari, and Mohit Chowhan for the issuance of 33,97,100 OCRPS to the company and which were partly paid. 

 

"Now the remaining unpaid portion of the OCRPS is being called up by Alfaone Medicals Private Limited. Hence, the Loan Settlement and Call Payment Agreement is entered into to honour the call made by the board of AMPL," it explained.

 

Recently, brokerage firm JM Financial upgraded Aster DM Health stock to 'Buy' from 'Hold', with a share price target of ₹532 per share.

 

Aster DM's merger with Quality Care India Limited (QCIL) will place the company among top three hospital chains in India when measured in terms of bed capacity. The healthcare chain is estimated to achieve strong revenue growth aided by a double-digit increase in bed capacity and enhancing ARPOBS.

 

"Around two-thirds of the new bed additions will come from brownfield projects, which would improve Aster's Ebitda margins for the merged entity. Furthermore, the merger's synergies will likely result in 2-3 per cent improvement in operational efficiency," JM Financial said.

 

In the December quarter of the FY25, Aster DM reported a net profit of ₹80.5 crore, down 55.1 per cent year-on-year and 17 per cent quarter-on-quarter (Q-o-Q). Its net sales fell 72 per cent Y-o-Y to ₹1,049.8 crore, while Ebitda shrank 66.5 per cent Y-o-Y to ₹189.2 crore.

 

"We cut our core EPS in the range of 5-7 per cent FY25-26E as we lower our margin estimates. Aster DM trades at 63.3x FY26E core PE and 29.1x FY26E EV/Ebitda (pre-IndAS). We retain 'Accumulate' with a share price target of ₹521 based on 71x (from 68x) FY27E core P/E or 27.7x (from 27.9x) FY27E EV/EBITDA (pre-IndAS). Increased competition in the space and adverse government regulations are key risks," said those at Elara Capital in their Q3FY25 results review report.