Aster DM Healthcare IPO: Our recommendation “Avoid”

Rudra Shares And Stock Brokers | Feb. 12, 2018, 4:03 p.m.


Company’s Revenue is highly concentrated in the GCC states, Its growth strategy depends significantly on the construction or development of hospitals clinic and standalone retail pharmacies, which may be subject to delay and higher cost thereby decline in company’s margin going forward. Also, Higher attrition of reputed doctors can have an impact on the financials. Moreover, looking at the financials of Aster ,though the business looks attractive & also Government focus on health sector in the current budget sounds positive for Aster but losses in H1FY18 with weak financial performance in FY17 & high valuation at current level, we recommend to Avoid the issue.

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