After painful restructure of
domestic and international business, Fortis Healthcare is back to profitability
during Q1FY17. It is also encouraging to observe that equity price of the
company is going up. Fortis Healthcare is more or less done with their capex
cycle to increase the total bed offering and invested millions of $'s in the
last three years. At the same time, they exited from International market in
order to focus on domestic business. The sellout of International Business helped Fortis to reduce their debt level and ultimately helped the EBITA on the
positive side.
The recent talk of monetizing the
pathological unit post the successful IPO of Dr Lal Path Labs and Thyrocare
Technologies; Fortis Healthcare management formed a committee to explore the
opportunity to increase the shareholder value. The committee tenure ends by
30th August 2016 and it is widely expected that committee will propose IPO of
some of the units of Fortis Healthcare to unlock value.
In my point of view, investor who
is willing to invest on delivery basis should pick Fortis Healthcare during the
down day of Street and accumulate it for the better return in medium to long
run.
