Fortis Healthcare Limited (FHL) is a prominent for-profit private hospital network in India, known for its commitment to providing integrated healthcare services. Established in February 1996, the company commenced its operations with the inauguration of its first healthcare facility in Mohali, Punjab, in 2001. With a strong presence in the Indian healthcare sector, FHL has earned a reputation for its comprehensive medical services.
In this article, we will delve into the various aspects of this healthcare giant, exploring its history, services, and impact on the healthcare landscape in India.
About Fortis Healthcare
Fortis Healthcare Limited stands as a leading integrated healthcare provider in India, with a robust network comprising 27 hospitals and various specialty facilities, totaling approximately 4,000 operational beds. Operating not only in India but also in Nepal, Dubai, and Sri Lanka, Fortis oversees a spectrum of healthcare services, including hospitals, diagnostics, and day care specialties. Their diagnostic arm, SRL Limited, is a major player with over 600 cities served and a staggering 415 laboratories.
With a focus on expansion and quality, Fortis has gained recognition for its extensive accreditation, boasting JCI and NABH accreditations for several of its hospitals and nursing programs. Moreover, their recent foray into women and child health segments under the La Femme brand marks a strategic expansion in specialized care. The company’s ownership saw significant changes, with IHH Healthcare securing a controlling stake. This takeover, accompanied by key board appointments, signifies a new phase in Fortis’s evolution, reflecting a global healthcare presence.
Fortis Healthcare Q3 FY24 Summary and Key Points
- Net profit rose by 4% YoY to ₹135 crore.
- Revenue increased by 8% to ₹1,680 crore.
- EBITDA grew by 2.4% to ₹283 crore, with a margin of 16.9%.
- Hospital business revenue surged by 9.6%, but occupancy dropped to 64.0%.
- Diagnostics business revenues remained stable at ₹330.7 crore.
- Net debt to EBITDA ratio increased slightly to 0.45.
Below are the trading platforms that you can use to purchase FHL shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| March 2024 | ₹449.90 | ₹391.22 |
| April 2024 | ₹436.80 | ₹379.82 |
| May 2024 | ₹430.34 | ₹374.21 |
| June 2024 | ₹445.83 | ₹387.68 |
| July 2024 | ₹441.37 | ₹383.80 |
| August 2024 | ₹459.03 | ₹399.16 |
| September 2024 | ₹477.39 | ₹415.12 |
| October 2024 | ₹468.03 | ₹406.98 |
| November 2024 | ₹482.07 | ₹419.19 |
| December 2024 | ₹494.12 | ₹429.67 |
In 2024, FHL’s maximum prices are projected to fluctuate as follows: March will witness a peak at ₹449.90, followed by a slight decline to ₹436.80 in April. However, prices are expected to rebound in May to ₹430.34 before gradually increasing throughout the year, reaching ₹494.12 by December. Conversely, minimum prices are anticipated to follow a similar trend, starting at ₹391.22 in March and gradually rising to ₹429.67 by December.
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January 2025 | ₹504.01 | ₹387.70 |
| February 2025 | ₹516.93 | ₹397.64 |
| March 2025 | ₹537.09 | ₹413.15 |
| April 2025 | ₹526.56 | ₹405.04 |
| May 2025 | ₹511.22 | ₹393.25 |
| June 2025 | ₹534.23 | ₹410.94 |
| July 2025 | ₹523.75 | ₹402.89 |
| August 2025 | ₹539.95 | ₹415.35 |
| September 2025 | ₹558.85 | ₹429.88 |
| October 2025 | ₹573.38 | ₹441.06 |
| November 2025 | ₹587.71 | ₹452.09 |
| December 2025 | ₹602.41 | ₹463.39 |
Throughout 2025, FHL’s maximum prices are forecasted to fluctuate, commencing at ₹504.01 in January and steadily climbing to ₹602.41 by December. Similarly, minimum prices will undergo fluctuations, starting at ₹387.70 in January and progressively increasing to ₹463.39 by December, paralleling the upward trend observed in maximum prices. Overall, the year is poised to witness a continual upward trajectory in both maximum and minimum prices for FHL.
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January 2026 | ₹620.48 | ₹477.29 |
| February 2026 | ₹636.39 | ₹489.53 |
| March 2026 | ₹661.21 | ₹508.62 |
| April 2026 | ₹648.24 | ₹498.65 |
| May 2026 | ₹629.36 | ₹484.12 |
| June 2026 | ₹657.68 | ₹505.91 |
| July 2026 | ₹644.79 | ₹495.99 |
| August 2026 | ₹664.73 | ₹511.33 |
| September 2026 | ₹687.99 | ₹529.23 |
| October 2026 | ₹705.88 | ₹542.99 |
| November 2026 | ₹723.53 | ₹556.56 |
| December 2026 | ₹741.62 | ₹570.47 |
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January 2027 | ₹756.45 | ₹581.88 |
| February 2027 | ₹775.84 | ₹596.80 |
| March 2027 | ₹806.10 | ₹620.08 |
| April 2027 | ₹790.30 | ₹607.92 |
| May 2027 | ₹767.28 | ₹590.21 |
| June 2027 | ₹801.81 | ₹616.77 |
| July 2027 | ₹786.08 | ₹604.68 |
| August 2027 | ₹810.40 | ₹623.38 |
| September 2027 | ₹838.76 | ₹645.20 |
| October 2027 | ₹860.57 | ₹661.98 |
| November 2027 | ₹882.08 | ₹678.52 |
| December 2027 | ₹904.13 | ₹695.49 |
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January 2028 | ₹922.22 | ₹709.40 |
| February 2028 | ₹945.86 | ₹727.59 |
| March 2028 | ₹982.75 | ₹755.96 |
| April 2028 | ₹963.48 | ₹741.14 |
| May 2028 | ₹935.42 | ₹719.55 |
| June 2028 | ₹977.51 | ₹751.93 |
| July 2028 | ₹958.35 | ₹737.19 |
| August 2028 | ₹987.99 | ₹759.99 |
| September 2028 | ₹1,022.57 | ₹786.59 |
| October 2028 | ₹1,049.15 | ₹807.04 |
| November 2028 | ₹1,075.38 | ₹827.22 |
| December 2028 | ₹1,102.27 | ₹847.90 |
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January 2029 | ₹1,124.31 | ₹864.85 |
| February 2029 | ₹1,153.14 | ₹887.03 |
| March 2029 | ₹1,198.11 | ₹921.62 |
| April 2029 | ₹1,174.62 | ₹903.55 |
| May 2029 | ₹1,140.41 | ₹877.24 |
| June 2029 | ₹1,191.73 | ₹916.71 |
| July 2029 | ₹1,168.36 | ₹898.74 |
| August 2029 | ₹1,204.49 | ₹926.53 |
| September 2029 | ₹1,246.65 | ₹958.96 |
| October 2029 | ₹1,279.06 | ₹983.90 |
| November 2029 | ₹1,311.04 | ₹1,008.49 |
| December 2029 | ₹1,343.82 | ₹1,033.71 |
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January 2030 | ₹1,370.69 | ₹1,054.38 |
| February 2030 | ₹1,405.84 | ₹1,081.41 |
| March 2030 | ₹1,460.67 | ₹1,123.59 |
| April 2030 | ₹1,432.03 | ₹1,101.56 |
| May 2030 | ₹1,390.32 | ₹1,069.47 |
| June 2030 | ₹1,452.88 | ₹1,117.60 |
| July 2030 | ₹1,424.39 | ₹1,095.69 |
| August 2030 | ₹1,468.45 | ₹1,129.57 |
| September 2030 | ₹1,519.84 | ₹1,169.11 |
| October 2030 | ₹1,559.36 | ₹1,199.51 |
| November 2030 | ₹1,598.34 | ₹1,229.49 |
| December 2030 | ₹1,638.30 | ₹1,260.23 |
Throughout the year 2030, the maximum prices of FHL are poised to undergo varying trajectories. Commencing at ₹1,370.69 in January, these prices are anticipated to follow a fluctuating pattern, eventually peaking at ₹1,638.30 by the end of December. On the other hand, the minimum prices are also expected to fluctuate, initiating at ₹1,054.38 in January and steadily ascending to ₹1,260.23 by December, reflecting the upward trend observed in maximum prices. Consequently, 2030 is projected to witness a continuous evolution in both maximum and minimum prices for FHL, highlighting the dynamic nature of the market conditions.
Fortis Healthcare Financial Condition: Last 5 Years
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Sales | 4,469 | 4,632 | 4,030 | 5,718 | 6,298 |
| Expenses | 4,238 | 4,022 | 3,626 | 4,649 | 5,196 |
| Operating Profit | 231 | 610 | 404 | 1,069 | 1,101 |
| Other Income | 228 | 126 | 95 | 367 | 157 |
| Interest | 337 | 205 | 166 | 147 | 129 |
| Depreciation | 233 | 292 | 291 | 301 | 316 |
| Profit Before Tax | -110 | 239 | 43 | 988 | 814 |
| Net Profit | -224 | 91 | -56 | 790 | 633 |
| EPS (Rs) | -3.96 | 0.77 | -1.45 | 7.35 | 7.80 |
| Dividend Payout (%) | 0% | 0% | 0% | 0% | 13% |
Over the last five years, Fortis Healthcare has shown a notable financial evolution, evident in its sales trajectory. Starting in 2019 at Rs 4,469 crore and consistently climbing to reach Rs 6,298 crore in 2023, the company has demonstrated a substantial revenue increase. However, the ascent in expenses mirrors this growth, from Rs 4,238 crore to Rs 5,196 crore in the same period, indicating the cost associated with the company’s expansion.
Yet, the noteworthy aspect lies in the operational efficiency showcased through the operating profits, which have impressively risen from Rs 231 crore to Rs 1,101 crore, signifying a strengthened core business performance. The profitability, despite a dip in 2021, has shown resilience, notably rebounding in 2022 and 2023, as evident in the profit before tax and the net profit figures. This financial stability is further highlighted by a consistent dividend payout, escalating to 13% in 2023, indicating a balance between growth and rewarding stakeholders.
FAQs
What is the current market cap of Fortis Healthcare?
Fortis Healthcare currently holds a market capitalization of ₹32,969 crore.
Predicted share prices for January 2025 range between a maximum of ₹602.41 and a minimum of ₹387.70.
The projections for 2030 indicate potential prices ranging from ₹1,638.30 to ₹1,054.38.
What is Fortis Healthcare’s present P/E ratio?
As of February 28th, 2024, Fortis Healthcare’s stock displays a P/E ratio of 61.6.
How has Fortis Healthcare’s net profit trended over the last five years?
Fortis Healthcare’s net profit demonstrated fluctuations but showed improvement over the years, reaching ₹633 crore in 2023.
How has Fortis Healthcare’s sales grown from 2019 to 2023?
The company’s sales surged from ₹4,469 crore in 2019 to ₹6,298 crore in 2023.
What has been the change in Fortis Healthcare’s operating profit from 2019 to 2023?
The operating profit surged from ₹231 crore in 2019 to ₹1,101 crore in 2023, indicating substantial growth.
The current share price is noted at ₹437.
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Fortis Healthcare: A Mixed Bag with Growth Potential and Valuation Concerns
Fortis Healthcare, established in 1996, has become a stalwart in India’s healthcare landscape with a robust network across various countries. The company has excelled, notably expanding to include diagnostic services, extensive accreditations, and strategic investments in specialized care. Financially, it’s showcased a remarkable sales increase, substantial operational growth, and consistent dividend payouts.
Anticipated share price projections depict a positive trajectory, promising long-term growth potential. Despite occasional setbacks in sales and operational profit, Fortis has demonstrated resilience and an upward trajectory in performance indicators. These positive trends position the company favorably in the healthcare sector.
However, the company’s stock might be overvalued, trading at a considerable premium compared to its book value. The overall performance reflects promising financial stability, yet concerns about sales growth and return on equity persist. Considering the financial and performance aspects, Fortis Healthcare shows promise but warrants careful consideration due to its valuation and sales performance.
What did we learn?
- 1 About Fortis Healthcare
- 2 Fortis Healthcare Q3 FY24 Summary and Key Points
- 3 How to Purchase Fortis Healthcare Shares?
- 4 Fortis Healthcare Limited Share Price Target: 2024, 2025 To 2030
- 5 Fortis Healthcare Financial Condition: Last 5 Years
- 6 FAQs
- 6.1 What is the current market cap of Fortis Healthcare?
- 6.2 What are the projected share price targets for Fortis Healthcare in 2025?
- 6.3 What are the predicted share price targets for Fortis Healthcare in 2030?
- 6.4 What is Fortis Healthcare’s present P/E ratio?
- 6.5 How has Fortis Healthcare’s net profit trended over the last five years?
- 6.6 How has Fortis Healthcare’s sales grown from 2019 to 2023?
- 6.7 What has been the change in Fortis Healthcare’s operating profit from 2019 to 2023?
- 6.8 What does the current share price stand at for Fortis Healthcare as of February 28, 2024?
- 7 Fortis Healthcare: A Mixed Bag with Growth Potential and Valuation Concerns
