Stock Tips: Shares of this multi-specialty hospitals chain have lost about 23 per cent so far in 2022, but the confidence of market experts remains on it.
Stock Tips: Shares of veteran multi-specialty hospitals chain Shalby have lost nearly 23 per cent in 2022 so far this year, but the confidence of market experts remains on it. According to domestic brokerage firm ICICI Securities, investors can earn up to 44 per cent profit by investing in Shelby. Market experts have given it a buy rating and advise investors to invest with a target price of Rs 160. Right now its price is Rs 111.10 per share on BSE.
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Investment Advice on Target Price of Rs 160
- Shelby is a multi-specialty hospital chain with expertise in Joint Replacement. Its highest 29 percent revenue comes from arthroplasty. 22% of the revenue comes from Critical Care and General Medicine, 8% from Orthopedic, 9% from Oncology, 8% from Cardiac Science, 5% from Neurology and 16% from Others.
- Its revenue grew by 12 per cent to Rs 163 crore in the March 2022 quarter on a year-on-year basis. Its net profit also increased by 4 per cent year-on-year to Rs 10.2 crore.
- Experts at ICICI Securities remain confident on this stock as the operational performance of hospitals continues to improve, focus remains on asset light model through franchise push, expansion in implants will provide integration advantage and third party push.
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- Shelby is the market leader in arthroplasty procedures and has a 15% share in the joint replacement surgery market conducted by organized private corporate hospitals.
- It has launched new services Home Care and Shelby Care Cards. Apart from this, by expanding to 50 franchises in three years, Shelby aims to increase sales by two and a half times in the next three to five years.
- For all these reasons, the brokerage firm has advised investing in it at a target price of Rs 160.
Price at 48% discount from record high of 52 weeks
Shares of Shelby closed on Friday (June 10) at a price of Rs 111.10 on the BSE. It is at a discount of about 48 percent from the record price of 52 weeks. Its stock was at a price of Rs 214 last year on August 10, 2021, which is a record price of 52 weeks. Last month on May 26, it had slipped to a 52-week record low of Rs 100.05. Since then it has gained 11 per cent. This year it has weakened by 23 per cent but now in a period of one to one and a half years, it may strengthen by 44 per cent.
(The stock recommendations given in the story are those of the respective research analyst and brokerage firm. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
