This healthcare stock is in momentum after reporting decent Q2FY23 result

On a YoY basis, the net profit increased by 26%.

On November 15, the market is trading in the red. At noon, the S&P BSE Sensex is trading flat at 61,508.99, down 0.20%, while NIFTY50 is trading flat at 18,299.55, down 0.16%. About sectoral performance, Auto and Telecom are the top gainers, while Metal and Realty are among the top losers. Regarding stock-specific action, Krishna Institute of Medical Sciences Ltd is the top gainer among BSE group ‘A’.

Shares of Krishna Institute of Medical Sciences Ltd have surged 5% and are trading at Rs 1652.2, as of 12:10 pm. The stock has hit a new 52-week high today.

The scrip opened at Rs 1580 and so far, has made an intraday high and low of Rs 1669.1 and Rs 1580, respectively. On November 12, the company announced its September quarterly results. Since the result announcement, the shares of Krishna Institute of Medical Sciences have rallied more than 14% in just two trading sessions.

For the recent quarter Q2FY23, on a consolidated basis, the total revenue from operations increased 37% YoY and 13.8% sequentially to Rs 573 crore. The Q2 FY23 PBIDT (Excl OI) was reported at Rs 161 crore, an 13.4% YoY and 13.4% sequentially increase. The EBITDA margin remained stable at 26.6% compared to 26.5% in Q2FY22.

The company’s net profit increased by 25.89% YoY from Rs 84.25 in Q2FY22 to Rs 106 crore in Q2FY23. However, the Q2FY23 PAT margin was reduced by 166 basis points to 18.8% from 20.46% in Q2 FY22. In all, the company had reported a good set of numbers.

KIMS Hospitals is one of India's largest corporate healthcare groups, with hospitals in Telangana, Andhra Pradesh, and Maharashtra. It offers budget-friendly multi-disciplinary integrated healthcare services, with a primary focus on tertiary and quaternary healthcare.

About the shareholding pattern, 38.85% of the company’s stake is owned by the promoters, 10.17% by FIIs, 27.97% by DIIs, and the rest 23.01% by the non-institutional investors.

The company has a market capitalisation of Rs 13147 crore and is trading at a PE multiple of 51.74x.