Fortis Healthcare: The faint-hearted can wait for more clarity

The Fortis-RHT deal and core business growth can drive earnings, but many reasons to remain cautious too

Fortis Healthcare caught the street’s attention after one of India’s prominent investors, Radhakishan Damani’s firm picked half a per cent stake in the healthcare services provider. On Tuesday, its share price surged five per cent, adding to the 40 per cent gains since its three-year low in early February.

For a stock, which has been under pressure due to overhang of litigations and unfavourable court verdict in an Rs 35 billion arbitration case, both involving the promoters, Damani’s stake buy is positive. But, for the faint-hearted investors, they may still want to wait for the clouds to clear.

First, the