Jhunjhunwala Portfolio News: When Nifty and Sensex are touching new heights, then a stock included in the portfolio of Big Bull Rakesh Jhunjhunwala has seen a big decline. Shares of Fortis Healthcare have lost about 8 per cent since August 30. On August 30, its prices had reached Rs 301.30 in intra-day, but after that selling started. On Thursday, September 2, the stock closed at Rs 277.70 on the BSE, down 7.97 per cent. However, despite this recent fall, its prices have gained 8.88 percent in one month and in the last six months it has increased the capital of investors by 60.01 percent.
In such a situation, due to the recent sharp fall, there is confusion in the minds of investors as to what strategy should be adopted for investment. Market experts have mixed opinions on this. Jhunjhunwala owns 3,25,50,000 shares of Fortis, whose value is around Rs 903.9 crore. According to the shareholding pattern in the April-June quarter, Jhunjhunwala holds 4.3 per cent stake in Fortis Healthcare.
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Company’s financial report for the first quarter of FY22
- Fortis Healthcare Company is a leading healthcare service provider operating 27 healthcare facilities, 4100 operational beds (including O&M model) and over 425 network diagnostic centers.
- Due to Corona, the revenue of Fortis is booming and its operating income in April-June 2021 was Rs 1410.3 crore, which was 132.7 percent higher on a yearly basis. One of the reasons for the rise in its revenue was the acquisition of the remaining 50 per cent stake in the joint venture DDRC SRL Diagnostic by Fortis Healthcare’s diagnostic chain company SRL.
- Fortis’ hospital business grew 106.1 percent year-on-year and 2.5 percent quarter-on-year to Rs 1006.3 crore, while its diagnostics business grew 214.4 percent year-on-year and 44.4 percent quarterly. Fortis received revenue of Rs 441.4 crore from the diagnostic business in April-June 2021.
- In the first quarter of FY 2022, the company’s net profit (Profit After Tax) grew by 329.2 percent. Fortis made a profit of Rs 430.6 crore in April-June 2021, compared to (-) Rs 187.9 crore in the first quarter of the previous financial year. On a quarterly basis also, the company’s net profit has increased by 595.5 percent. The profit after tax of the company in January-March 2021 was Rs 62.4 crore.
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This is the opinion of experts regarding investment
- According to brokerage firm HDFC Securities, the financial report of Fortis has been excellent in the first quarter due to the better performance of COVID occupancy and diagnostics business. In such a situation, due to high revenue growth and improvement in margin profile, there is a possibility of further growth in it. Investors can invest in this stock at a target price of Rs 330. Apart from this, if there is a slippage in its price, then at the rate of Rs 256-257, you can add more stocks to it i.e. increase the number of shares.
- Share market expert Dr. Ravi Verma has cautioned investors about investing in Fortis. He says that there is no need to panic about selling in pharma stock when the market picks up, but the case of Fortis is different. In the first quarter of FY 2022, the company’s financial results have been better but less than expected. According to Ravi Verma, there is a possibility of a correction of 3-4 percent in this even further. He said that it will give returns in the long term but in comparison, you can earn more profit by investing in Sun Pharma and Cadila. He has asked investors to book profits on their investments and consider investing in other pharma stocks.