Shalby Shares Jump 6% on Securing 30-Year Lease for Mumbai's Asha Parekh Hospital

Shalby Limited shares surged 6.6% to ₹304 in the afternoon on July 11 following the company’s announcement of securing a 30-year lease to operate Asha Parekh Hospital in Santacruz, Mumbai.

In a filing on Wednesday, Shalby disclosed that the Charity Commissioner of Mumbai approved their application submitted in November 2023. This approval grants Shalby a 30-year lease on the property of Asha Parekh Hospital, also known as Smt Bhikhubai Chandulal Jalundwala General Hospital (BCJ), in Santacruz.

Shalby also mentioned that it will formalize a lease agreement with the trust and seek necessary approvals and permissions to construct a new hospital facility with over 175 beds at Santacruz.

For Q1 FY25, Shalby’s consolidated net profit dropped by over 20% year-on-year to ₹16.6 crore, down from ₹20.8 crore in the same period last year. This decline was mainly due to total expenses for the quarter ending in June increasing at a faster rate than revenue.

Shalby offers a comprehensive range of tertiary and quaternary healthcare services, specializing in orthopedics, complex joint replacements, cardiology, neurology, oncology, and renal transplants. The company is globally recognized as a leader in knee replacement surgery and is one of India’s top hospitals for joint replacement procedures.

At the time of the report, Shalby share price were trading at ₹300, up 5% from the last close on the NSE. Over the past year, Shalby shares have rallied nearly 70%, significantly outperforming the Nifty.

Headquartered in Ahmedabad, Shalby Limited is one of India’s leading multi-specialty chains of hospitals, known for providing high-quality and economical healthcare services. The hospitals, primarily tertiary care facilities, also offer quaternary healthcare services across various specializations such as orthopedics, complex joint replacements, cardiology, neurology, oncology, and renal transplants.