Nomura upgrades Fortis Healthcare to "buy"

Reuters Market Eye - Nomura upgrades Fortis Healthcare Ltd to "buy" from "neutral", but cuts its target price to 124 rupees from 170 rupees, citing recent underperformance and improvement in return ratios.

"Near-term ROE (Return on equity) is low at 1-3 percent but we expect average incremental ROE over the next five years to be 33 percent," said Nomura in a report.

The investment bank adds that in its view Fortis has come to the end of an investment cycle and will now focus on cash flows and profitability.

(Reporting by Abhishek Vishnoi)