Aster DM’s stock jumps record 119% in a year

Shares of Aster DM Healthcare jumped 8 percent on February 15 to hit an all-time high of Rs 478.30 on the National Stock Exchange on high volume. A total of 22 lakh shares have changed hands so far on the BSE and NSE combined, compared to a 1-month average of 8 lakh shares.

The sharp rally in share price comes a day after the company shared an investor presentation in which it informed that Aster DM Healthcare is being segregated to create two separate entities, focused on India and GCC respectively.

Post-segregation, Aster DM Healthcare Limited will be a focused listed entity holding India business, and GCC Business will be separated to create Aster GCC. The GCC Business will be acquired by Alpha GCC Holdings Limited, a company incorporated in Dubai International Financial Centre at an Enterprise Value of US$1,651.2 million (equal to Rs 13,540 crore).

At 2:36 pm, Aster DM shares were trading 7 percent higher at Rs 471.05 on the NSE. The stock has risen 119 percent in the last one year, delivering multibagger returns. In comparison, the benchmark Nifty rose around 21 percent during the same period.

In the week gone by, Aster DM Healthcare reported its first increase in quarterly profit since the first quarter of FY23 on the back of strong performance in the company’s domestic hospitals segment. Its consolidated net profit for the quarter ended December 2023 rose 28.6 on-year to Rs 179.21 crore. Its revenue rose 16 percent YoY to Rs 3,710.61 crore.

While Aster’s India business accounts for roughly a quarter of its revenue and Gulf Cooperation Council countries the rest, the company has focussed on expanding within India. In November 2023, the company agreed to sell a majority stake in its Gulf business for $1 billion to an investor group. Moneycontrol