Yatharth Hospital hits 5-month low, stock slips 24% in 12 days; here's why

In two days, the stock price of hospital company declined 9% after Citigroup Global Markets Mauritius Private Limited has sold 534,685 equity shares of the company for Rs 24.5 crore on the NSE.

Shares of Yatharth Hospital & Trauma Care Services hit a five-month low of Rs 440.40, down 4 per cent on the National Stock Exchange (NSE) in Friday’s intra-day trade despite the company clarifying on Income Tax (IT) matters. 

 

The stock is quoting lower for the 12th straight day, falling 24 per cent during the period. The market price of the company has fallen 36 per cent from its 52-week high level of Rs 693 touched on November 4, 2024. Currently, it is quoting at its lowest level since August 13, 2024.

 

In the last two days, the stock price of the hospital company declined 9 per cent after Citigroup Global Markets Mauritius Private Limited sold 534,685 equity shares of the company for Rs 24.5 crore. Graviton Research Capital LLP bought 503,241 shares at a price of Rs 458.14 per share via bulk deals, the NSE data shows.

 

Meanwhile, regarding concerns about the recent update on the provisional attachment of equity shares and properties by the Income Tax Department, Yatharth Hospitals said it would like to inform that there is no new development on the said matter.  CLICK HERE FOR DETAILS

 

The ongoing issues were duly informed to the stock exchanges following receipt of the notice from the authorities and before the opening of the Qualified Institutional Placement (QIP), the company said on Thursday, January 16, 2025 after market hours.

 

Currently, shares of Yatharth Hospitals are trading 26 per cent lower against QIP price of Rs 595 per cent. On December 23, 2024, the company had raised Rs 625 crore by issuing 10.5 million equity shares to eligible qualified institutional buyers. The list of allottees includes Citigroup Global Market Mauritius, Society Generale and SBI Life Insurance Company.

 

Yatharth Hospitals is one of North India’s leading healthcare providers. It operates five super specialty hospitals located in North India, i.e., at Noida, Greater Noida, Noida Extension and Faridabad in Delhi NCR, and Jhansi-Orchha in Madhya Pradesh.

 

Strong recall of the Yatharth brand with diversified reach via multiple hospitals has helped the group to sustain revenue growth over the past few fiscals. The group has been offering multispecialty primary healthcare services since 2010 and has been expanding its presence with four hospitals having capacity of 1,350 beds. The business acumen of the promoters has helped to increase consolidated operating income to Rs 673 crore in fiscal 2024 (of which Yatharth Hospital accounts for about 75 per cent) which is expected to touch Rs 800 crore in fiscal 2025, according to CRISIL Ratings.

 

Recently, Yatharth announced two acquisitions - (a) a 300+ bed hospital in Delhi (Model Town) for Rs 160 crore and (b) 60 per cent stake in a 400-bed hospital in Faridabad, Haryana for Rs 91 crore. These hospitals are set to operationalize by Q1FY26 and start contributing to revenues post that.

 

Analysts at Nuvama Wealth and Investment, in the Q2 result update, said that they believe expenses related to acquisitions and new hiring may impact the operating profit of the company in H2FY25 and FY26. 

 

Accordingly, the brokerage firm has cut its Ebitda estimates by 5 per cent/3 per cent for FY25/FY26. However, it increased Ebitda estimates for FY27 by 9 per cent to factor in impact of two acquisitions and forecast an Ebitda margin of 25 per cent/23 per cent and 24 per cent for FY25/FY26/FY27.