FOR­TIS HEALTH­CARE

I have 60 shares of For­tis Health­care­bought at ₹167. Should Icon­tinue to hold the shares or exit? - L. S. Sivakumar

Dalal Street Investment Journal - - QUERY BOARD -

For­tis Health­care Limited is an in­te­grated health­care de­liv­ery ser­vice provider. The com­pany’s busi­ness in­volves es­tab­lish­ing, main­tain­ing, op­er­at­ing, run­ning, man­ag­ing or ad­min­is­ter­ing hos­pi­tals, medi­care, health­care, di­ag­nos­tic, health aids and re­search cen­tres. The com­pany op­er­ates through the Clin­i­cal Es­tab­lish­ments Divi­sion and the Med­i­cal Ser­vices Divi­sion.

The Clin­i­cal Es­tab­lish­ments Divi­sion owns, main­tains and op­er­ates clin­i­cal es­tab­lish­ments, as well as pro­vides ser­vices un­der out­pa­tient divi­sion and ra­dio-di­ag­nos­tic ser­vices. Them ed­i­cals er­vicesd ivi­sion of the com­pany run­sthe hospi­tal op­er­a­tions, in­clud­ing in-pa­tient ser­vices and emer­gency ser­vices. The com­pany’s geo­graphic pres­ence in­health­care de­liv­ery ser­vices ex­pands from In­di­a­to­dubai, Mau­ri­tius and Sri Lanka.

On the fi­nan­cial front, For­tis Health­care posted a mar­ginal 1.41 per cent in­crease in its net sales to ₹168.43 crore in the first quar­ter of FY18 on a yearly ba­sis. The com­pany’s EBITDA loss nar­rowed by 35.84 per cent to ₹13.73 crore in the first quar­ter of FY18, as against ₹21.40 crore in the same quar­ter of the pre­vi­ous fis­cal. The com­pany’s net loss got re­duced dras­ti­cally to ₹1.04 crore in the first quar­ter of FY18 as com­pared to ₹7.05 crore in the same quar­ter of the pre­vi­ous fis­cal.

On an an­nual ba­sis, the com­pany’s net sales grew by 5.48 per cent to ₹645.12 crore in FY2017, as against ₹611.59 crore in the pre­vi­ous fi­nan­cial year. The com­pany’s EBITDA loss in­creased by 16.69 per cent to ₹146.55 crore in FY2017 as against

₹125.59 crore in the pre­vi­ous fis­cal. Fur­ther, the com­pany’s net loss widened to ₹74.75 crore in the fi­nan­cial year 2017 against ₹40.20 crore in FY16.THE com­pany’s per­for­mance on both the stock mar­ket and on the fi­nan­cial front has slowed down. We rec­om­mend the reader-in­vestors to EXIT the stock.

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