Want to Subscribe?
Read Corporate India and add to your Business Intelligence
Unlock Unlimited Access
Published: June 30, 2023
Updated: June 30, 2023
The market dip of 2022 has faded from memory as the new year sees listed companies’ fortunes boom on Indian bourses. The country’s two barometric indices, the BSE Sensex and the NSE 50, are currently quoting at 65,473 and 19,406 respectively. In doing so, they have left the UK, French and pan-Europe indices far behind. As they say, numbers do not lie: India today has the fourth largest equity market, outperforms all major economies in terms of GDP, and is the fifth largest global economy. Besides, while recessionary fears abroad have dampened consumption, here in India rising incomes and a growing middle-class have led to a huge increase in consumption, attracting the investing attention of several Western honchos.
As a result, stock prices have skyrocketed and popular stocks have reached beyond the reach of retail investors. In these circumstance Corporate India Research Bureau has suggested seven little known stocks with high growth potential.
Though 2022 was volatile for India’s stock market due to interest rate hikes and geopolitical tensions, 2023 has been extremely bullish so far with all leading indices scaling new highs almost every day. India’s benchmark and most popular among the masses, the BSE Sensex based on prices of 30 pivotal stocks quoted on the Bombay Stock Exchange, has spurted to an alltime high of 65,473, and the Nifty 50, the darling of analysts and based on prices of 50 pivotal stocks quoted on the National Stock Exchange, has zoomed to 19,405.
In fact, during the last three months, the Sensex and the Nifty have surged ahead by 11-12 per cent. Both these indices have far outperformed their European peers. Since March 2023, the United Kingdom’s FTSE (100) has risen just 0.8 per cent and France’s (CAC 40) 2.9 per cent. The panEuropean Stoxx Europe 500 index has gained 2.9 per cent.
The total value of Indian equity has hit $ 3.5 trillion – greater than the value of Europe’s two biggest stock markets in the UK and France, according to data from Refinitiv.
India’s strong performance stands in striking contrast to Europe. There, recession fears have been on the rise and concerns of persistently high inflation have resulted in continued monetary tightening. These fears and the interest rate hikes have adversely affected private consumption in the region. In contrast, in India the fears of rising inflation are receding and the interest rate cycle is expected to take a favourable turn. The boom time in the Indian stock market is considered to be a reflection of the strength and potential of the Indian economy. Says one analyst, “India’s stock market is booming as investors take a chance in one of the new bright spots in a fragile global economy.” The country’s stocks are so hot that India is now home to the world’s fourth most valuable equity market, behind the US, China and Japan. Even the International Monetary Fund expects India to outperform all major emerging and advanced economies this year, logging 6.9 per cent growth in gross domestic product (GDP).
Little wonder that yesterday’s underdeveloped India has been catapulted to the position of the fifth largest industrial nation and is expected to climb further to the third position by 2030. Even in terms of population, India has overtaken China to become the world’s most populous nation with 1.4 billion people, representing an enormous pool of potential workers and consumers that companies – both in India and abroad – can tap into. Little wonder, again, that several western companies have been eyeing the Indian market and are keen to enter it.
Moreover, there is a growing category, largely urban middle class, who have increasing disposable incomes. Their standard of life is improving and their aspirations are on the rise. As Ms Sachini Kar, associate professor of International Development at the London School of Economics, told news agency CNN, “This is a heterogeneous group of which some at the top end are able to go for luxury goods, foreign holidays, etc. At the bottom end, it might be about being able to afford a motorcycle or family car.”
The surge in market indices is attributed to several favourable factors:
Little wonder then that India has emerged as one of the new markets globally which have a strong gross domestic product (GDP), while manufacturing sector momentum is fuelling Indian ambitions of becoming a global hub.
And despite small downgrades in earnings for the second quarter of fiscal year 2023, corporate performance during Q3 and Q4 of fiscal 2023 has been heartwarming. As the fortunes of stock market are directly linked to the performance of the corporate sector, this is a ready sign of a stock market uptrend.
Interestingly, the stock market has emerged as one of the best investment avenues in India in comparison to bank deposits, fixed deposits, real estate and precious metals. Little wonder then that the number of retail investors as well as HNIs is on an increase. The number of demat accounts (which hold stocks in a dematerialised form), which was just over 5 million over a decade ago, has soared to 116 million by now, clearly indicating a huge spurt in the number of investors in stocks.
The outcome is no surprise. Share prices have zoomed to very high, even unbelievable, levels. Blue chip stocks as well as other popular stocks have taken such a high jump that they have gone out of reach for retail investors. Believe or not, the Rs 10 face value scrip of MRF is quoted above Rs 1,00,000 a piece! Among other pivotals, Honeywell Automation India (FV Rs 10) is quoted around Rs 42,430, Nestle India (FV Rs 10) around Rs 22,870, Bosch (FV Rs 10) around Rs 19,240, Shree Cement with a face value of Rs 10 is in demand around Rs 24,520. Proctor and Gamble is in demand around Rs 14,525 and Lakshmi Machine Works around Rs 13,500.
What is more, several shares with a face value of Rs 10 are quoted over Rs 10,000 a piece, which include ZF Commercial Vehicle, Disa India, Tasty Bites Eatables, Bombay Oxygen Investment, Wendt, Kama Holdings, Yamuna Syndicate and Polson.
What is more, shares with a face value of Rs 5 like Maruti Suzuki India are quoted around Rs 9,989 Cera Sanitaryware at around Rs 7600.
Again, stocks with a face value of Rs 2 per share are 1,500 times pricier. For example, Shaeffler India is now available at Rs 3,080, AIA Engineering at Rs 3,190, Solar Industries around Rs 3,715, Navin Fluorine International around Rs 4,620, ABB India around Rs 4,400, Siemens around Rs 3,725, Dixon Technologies around Rs 4,210, L&T Technology Services around Rs 4,010, Bajaj Finance around Rs 7,840, Alkem Laboratories around Rs 3,500, Divi’s Laboratories around Rs 3,750, AstraZeneca Pharma India around Rs 3,720, Supreme Industries around Rs 3,200, and Hitachi Energy India around Rs 4,230.
Even more unbelievably, several stocks with a face value of Re 1 only are quoted over 3,000 times the face value. For example, Eicher Motors is available around Rs 3,310, L&T Mindtree around Rs 5,240, CRISIL around Rs 3,910, Britannia Industries around Rs 5,290, Asian Paints around Rs 3,370, PI Industries around Rs 3,850, Titan Company around Rs 3,100 and Orissa Minerals Development Company around Rs 3,820.
Relatively new retail investors are uncertain over what to buy in these circumstances as most of the popular stocks are out of their reach. However, there are 7,000 companies listed on recognized stock exchanges and there are several little known stocks which hold high growth potential going ahead. As they are not well-known, they are not on the radar of seasonal investors. We at Corporate India searched for such hidden jewels and found many. Here, we are listing out seven of these stocks for the consideration of retail investors. Here goes the list:
| FACE VALUE | 02 |
| CMP | 559.90 |
| 52 WEEK HIGH /LOW | 615/273 |
Gurugram (Haryana)-headquartered Hindware Home Innovation is one of the fastest growing players in the Indian consumer appliances segment and a leader in the building products segment. The company's consumer appliances division manufactures household items such as kitchen appliances, chimneys, built-in hobs, dish washers, cooktops, builtin ovens, cooking ranges, water purifiers, sinks, air coolers and ceiling fans. It also has a marketing tie-up with a leading Italian company - Formenti and Glovenzana -- in the furniture and kitchen fitment segments. Also, it has joined hands with Groupe Atlantic of France to form a 50:50 joint venture styled Hintastica Pvt Ltd, which is engaged in the manufacture of water heaters and room heaters. The company has a wholly owned subsidiary styled Hindware Ltd which is engaged in the manufacture of best-in-class sanitaryware, faucets and tiles with brands catering to a wide pricing spectrum of customers. Hindware Ltd is also engaged in the business of plastic pipes and fittings and overhead water storage tanks under the brand name Trecflow -- one of the fastest-growing brands in the country in this segment.
The company is steadily growing on the financial front. During the last five years, its sales turnover has expanded from Rs 1,671 crore in fiscal 2019 to Rs 2,873 crore in fiscal 2023, with operating profit almost doubling from Rs 124 crore to Rs 241 crore and the net profit shooting up from Rs 55 crore in FY2019 to Rs 202 crore in fiscal 2022, before declining sharply to Rs 58 crore in fiscal 2023. What is more, the prospects ahead are highly promising. The management expects an 18-20 per cent growth per year in the next few years.
The company's financial position is very sound, with reserves at the end of March 2023 standing at Rs 561 crore - more than 40 times its equity capital of Rs 14 crore. In recent years, the company has been regularly paying dividends, the rate for the last two years being 25 per cent.
Knowledgeable circles have started picking up the stock of the company and the stock price as a result has shot up to the Rs 540-545 price range. Research analysts have turned bullish on the stock. Maintain analysts at Nuvama Institutional Equities, "Given its strong positioning in bathware, its increasing presence in pipes & fittings and consumer appliances, coupled with a comprehensive product portfolio, strong brand recall and a wide and expanding distribution reach, we are optimistic about its medium- to long-term growth prospects. It can continue to deliver strong overall growth with a constant focus on product innovation. We place a BUY rating with a target price of Rs 546 within a year."
| FACE VALUE | 02 |
| CMP | 702.70 |
| 52 WEEK HIGH /LOW | 743/431 |
Andheri (Mumbai)-headquartered Carysil, formerly known as Acrysil, is one of the world leaders in the manufacturing of composite quartz kitchen sinks engineered with German technology, stainless steel kitchen sinks, bath products, tiles and kitchen appliances, and accessories. The company, which operates under the brand name Carysil, serves customers in approximately 30 countries, including the US, the UK, Germany, France, Canada, China, the Far East and Gulf countries. Besides 'Carysil', the company has another brand 'Strengthen' which offers quartz models for basins for bathrooms. The company has launched a new 'RoseGold' collection of premium sanitaryware and bathroom fittings at its Mumbai and Bengaluru showrooms. It offers quartz antibacterial sinks, stainless steel sinks with integrated worktops, and chimneys with motion sensors, oil collectors and auto cleaning.
Globally, there are only four manufacturers of quartz sinks -- Blanco, Franke, Schock and Carysil. And Carysil is not only the sole manufacturer of quartz sinks in India but also in the whole of Asia with a global standard of quality, durability and visual appeal. Carysil in 2018 entered into an agreement with German brand Grohe for the supply of quartz kitchen sinks. Grohe, a dominant player in bathroom solutions and kitchen fittings, has a global presence in more than 130 countries. Further, in 2020, Carysil entered into a strategic partnership with Ikea Supply AG (Switzerland) for the manufacture and supply of composite quartz kitchen sinks globally. This partnership is expected to be a game changer for the company as Ikea has 400+ stores in 52 countries.
Carysil has a strong distribution network. The company has a strong presence in 55 countries across the globe, including Germany, the US, the UK, South Africa and Australia. It now aims to spread its wings to 70 countries over the next 3 years by exploring uncatered geographies. As far as the domestic market is concerned, in order to strengthen its brand, the company has increased its dealer network from 400 to 1,500 and its distributor network from 30 to 85. It also has 40 franchise galleries. Further, it plans to add 100 new galleries and 34 distributors.
With a view to meeting the increasing demand for its products at home as well as in export markets, Carysil has undertaken a Rs 15-crore capex to expand its quartz sinks manufacturing capacity from 5 lakh units to 6 lakh units per annum. The company has enough land in its land bank to further increase the capacity from 6 lakh units to 9 lakh units per annum.
The company has made rapid strides in its financial performance. During the last 12 years, its sales turnover has expanded from Rs 63 crore in fiscal 2012 to Rs 594 crore in fiscal 2023, suggesting a 9-time spurt, with operating profit shooting up over 13 times from Rs 8 crore to Rs 105 crore and the net profit spurting from just Rs 1 crore to Rs 53 crore. During the last 10 years, the sales CAGR has been 22 per cent and the profit CAGR 27 per cent. The company's financial position is sound, with reserves at the end of March 2023 standing at Rs 298 crore - almost 60 times over its equity capital of Rs 5 crore.
Prospects for the company going ahead are all the more promising as the demand for its products is on the rise and there is no competitor in sight. Viewed in the context of the company's strong brand image, wide distribution network, expanded capacity in quartz sinks and stainless steel sinks, and revamped product portfolios the bathroom segment, the company's growth potential is very strong. With a view to increasing its presence in the US, the company has incorporated a wholly owned subsidiary which would look to leverage its existing customers, develop new customers and expand market penetration in the US. The domestic market is also growing and with rising incomes and growing aspirations, the demand for costly quartz sinks is expected to grow at a fast pace. The company's sales turnover, in these circumstances, is expected to touch the Rs 1,000-crore mark within the next five years or so.
| FACE VALUE | 10 |
| CMP | 1255.35 |
| 52 WEEK HIGH /LOW | 1449/960 |
Hyderabad (Telangana)-headquartered Veljan Denison, incorporated in 1973, is engaged in the manufacturing of pumps, motors, valves and custom-built power systems/manifold blocks. Set up originally in 1974 under technical and financial collaboration with Denison division of Apex Corporation of the US, it went into the fold of Hagglunds of Sweden when the latter acquired Denison Hydraulics from Apex Corporation and its name was changed to Hagglunds Denison India. In 1994, when Hagglunds divested Denison Hydraulics, the Indian company decided to part ways and ended the relationship with its erstwhile collaborators. The name of the company was changed to Veljan Denison.
The company has the expertise to provide complete solutions in all applications such as ship building, energy, mobile and industrial segments. The company is agile and always in an expansion mode. In fact, development, enhancement and expansion of the existing products range is an ongoing process at Veljan in order to meet the dynamic market needs.
In July 2022, the company acquired a 100 per cent stake in Adam Holdings at a cost of euros 1.40 million (approximately Rs 112.87 crore) payable in cash. Adam owns other hydraulics and engineering firms in the UK. The acquisition has helped Veljan elevate its market position in Europe.
The company has made steady progress in its financial performance. During the last 12 years, its sales turnover has expanded from Rs 81 crore in fiscal 2012 to Rs 111 crore in fiscal 2023 but its profit growth is not that newsworthy, with operating profit moving in irregular fashion from Rs 22 crore in 2012 to Rs 28 crore in FY2018 before going down to Rs 13 crore in FY2021 and then recovering to Rs 23 crore in fiscal 2023. The net profit has inched up from Rs 11 crore to Rs 15 crore.
The company's financial position is very strong, with reserves at the end of March 2023 standing at Rs 181 crore - over 90 times its equity capital of just Rs 2 crore. It has a robust and healthy balance sheet with zero debt and an interest coverage of over 16 times.
Prospects for the company going ahead are all the more encouraging. With a long track record in the manufacture of hydraulic pumps and valves, Veljan has more than five decades of experience in the manufacturing of vane-based hydraulic pumps, valves and power block systems. The company's customer base is geographically diversified as the company exports its products to countries like the US, Australia and the Middle East and to OEMs like Escorts, Construction Equipment Ltd, Action Construction Equipment Ltd. among others in the domestic market. Again, the company has a comfortable financial risk profile and its operating profit margins are healthy.
Shares of the face value of Rs 10 are quoted around Rs 1,255 and are worth including in the portfolios of discerning investors.
| FACE VALUE | 10 |
| CMP | 663.35 |
| 52 WEEK HIGH /LOW | 695/187 |
Hyderabad (Telangana)-headquartered Hariom Pipes Industries, the flagship of the illustrious Hariom group set up by legendary businessman Hariom Golas, has during an existence of over five decades emerged as an premier integrated manufacturer of mild steel (MS) pipes, scaffolding, HRS (hot rolled strips), MS billets and sponge iron. The company uses iron ore to produce sponge iron, which is then processed across various stages to manufacture its final products, MS pipes and scaffolding systems, making its manufacturing process cost-effective. All these products are appreciated for their top quality and they cater to a variety of industrial applications across multiple sectors, such as housing, infrastructure, agriculture, automotive, power, cement, mining, solar power and engineering.
The company has two plants. The integrated plant at Mahabubnagar district in Telangana (Unit I), manufactures finished steel products from iron scrap and sponge iron. The other plant at Anantpur district in Andhra Pradesh (Unit II) exclusively manufactures sponge iron. This plant (Unit II) is located near Ballary, which is one of the hubs in south India for iron ore production. So the company does not face any problem in procuring its raw material, iron ore. Most of the sponge iron produced by Unit II is transported to Unit and used as raw material for manufacturing MS pipes, MS billets, HR strips and scaffolding. Due to Unit II, the company has reduced its dependence on external sources for the raw material. The integration of Unit I and Unit II has optimised its operations and profitability through backward integration, which helps with efficient logistics, inventory management, procurement, energy savings and quality control.
With a view to expanding its capacity, the company has entered into an asset transfer agreement with RP Metal Sections Pvt Ltd to purchase a unit that manufactures galvanized pipes and cold rolled coils. The unit, purchased at a price of Rs 55 crore, is spread over 13.83 acres of land located in the SIPCOT industrial growth centre in Perundurai, Tamil Nadu.
The company, which has already established a strong presence in south India, has now spread its wings to western India. Its pipes are being sold in these regions under the brand name Hariom Pipes. The company sells MS pipes in India through more than 200 distributors and dealers. It also sells its pipes and scaffoldings to certain developers and contractors directly as BRB sales. The management insists that its key differentials are its range of products, specifications in terms of thickness, length and quality, availability and customised products.
The company has made rapid strides in its financial performance. During the last seven years, its sales turnover has expanded more than seven times from Rs 87 crore in fiscal 2017 to Rs 644 crore in fiscal 2023, with operating profit shooting up almost 12 times from Rs 7 crore to Rs 82 crore and the profit at net level surging from Rs 2 crore to Rs 46 crore, recording a 23-time spurt. The company's financial position is very strong, with reserves at the end of March 2023 standing at Rs 348 crore against its equity capital of Rs 18 crore.
Hariom's prospects going ahead are all the more promising. First of all, the intermediate products required act as an input for the next process and provide flexibility in alternation of their product mix as per market demand and supply, market price and the available gross margins. For example, its induction furnace plant output of MS billets can be segregated and sold independently or can be provided as an input for its rolling mills. Further, the output of its rolling mills, HR strips, can sold independently as well as used as an input for manufacturing MS pipes. This ability to change the product mix as per market demand and supply dynamics gives it the flexibility to serve a wider spectrum of customers across various sectors. In addition to the seamless and flexible operations, integration of its production process provides it a cost advantage over its competitors. This in turn helps the company fix a competitive pricing policy for its products which enables it to face competition from other industry players effectively.
The company has set up two new MS pipes plants adjacent to its existing plant at Mahaboobnagar, which have gone on stream recently. This greenfield expansion will raise the company's MS pipes capacity from the current level of 84,000 tonnes to 1,32,000 tonnes. In its second plant, the company has raised the capacity of its cold roll mill from 98,352 mtpa to 104,232 mtpa. These expansions will boost the company's topline as well as bottomline from the current fiscal (2024) onwards.
The company's shares (face value Rs 10) were quoted around Rs 647 on July 1 on widespread investor demand. Chances for further appreciation are immense.
| FACE VALUE | 01 |
| CMP | 56.55 |
| 52 WEEK HIGH /LOW | 72/45 |
Motherson Sumi Wiring India, newly listed on March 28, 2022 after well-known automotive components manufacturer Motherson Sumi Systems demerged its wiring harness business, has emerged within a short period of three years as a fast-growing company. Set up as a joint venture with leading Japanese corporate entity Sumitomo Wiring Systems, the company is a promising full system wiring harness solutions provider in India, catering to all major OEMs like Maruti Suzuki, Toyota Motors, Ashok Leyland and Tata Motors. The company has 23 plants in India with 40,000 employees. However, as it was recently carved out of erstwhile Motherson Sumi Systems, it is not that well-known.
The company started its journey in a modest way with the manufacture of a t-coupler for Maruti. This beginning paved the way for ties with its technical partner Sumitomo. The demerger from the parent company proved to be a boon for the new entity as it enabled the company to streamline and enhance its focus on the wiring harness business in India and better equipped the company to meet the current and future needs of Indian customers. Today, the company enjoys a product profile that benefits from favourable industry trends of premiumization, leading to an increase in electrification in automobiles. Little wonder then that Motherson Sumi Wiring is exploiting the recovery in the domestic automotive space with a superlative return ratio profile (RoCE of 50 per cent) and structural levers for longterm growth, given the content/vehicle increase due to the rise in electric/electronic content in vehicles.
The company has made rapid strides in its financial performance during the last three years, its sales turnover expanding from Rs 3,938 crore in fiscal 2021 to Rs 7,057 crore in fiscal 2023, with operating profit inching up from Rs 553 crore to Rs 781 crore and the profit at net level rising from Rs 396 crore to Rs 487 crore. Enthused by this performance, the board of directors of the company declared a bonus issue in the ratio of 2:5 in November 2022.
The company continues to be on the growth path. Recently it added two new plants in NOIDA and one new plant at Chennai. The ramp-up phase of the new facilities is over and the utilization is expected to scale up going ahead. Its order book position is stable, while it has a strong footprint in the electrical vehicle segment. Currently, it supplies to two of the top three e-PV OEMs and two of the top five e-2W OEMs in India. The company has participated in 23 new launches and 17 facelifts that took place in fiscal 2023 across PV, CV and 2W segments.
The company spent Rs 200 crore on capital expenditure during fiscal 2023 and the capex for fiscal 2024 has been earmarked at Rs 12,500 crore.
While ICICI Direct Research has factored in an OEM focus on premiumization in terms of technological advanced features like ADAS and sensors, and a greater share of UVs in the passenger segment, research analysts at Motilal Oswal have, after reducing the fiscal 2024 EPS by 2.7 per cent to reflect higher raw material prices, raised the fiscal 2025 EPS by 2.9 per cent to factor in the increase in new orders and improved cost control measures. Both the brokerages have reiterated a 'BUY' rating.
| FACE VALUE | 10 |
| CMP | 40.70 |
| 52 WEEK HIGH /LOW | 117/33 |
Chennai-headquartered Hemang Resources, a littleknown company which was going abegging at Rs 3 in the beginning of 2022, shot up - hold your breath - by 2,277 per cent to Rs 70 and advanced further to Rs 117 in 2023 before backtracking to Rs 33. The stock attracted fresh support at this rate and is now quoting around Rs 40.
The company, formerly known as Bhatia Industries and Infrastructure Ltd, is engaged in trading of all types of coal, stevedoring, logistics services and trading in land. It is a leading trader in imported coal. During the last 15-20 months, there was a serious energy crisis and hence imports surged, reaching 38.84 million tonnes during the April-October 2022 period. The cost of imported coal also increased and Hemang was one of the leading beneficiaries of the situation.
During the last 12 years, the company's sales turnover has advanced from Rs 148 crore in fiscal 2012 to Rs 205 crore in fiscal 2023. Operating profit has been like a seesaw, turning from a profit of Rs 9 crore in 2012 to a loss of Rs 12 crore in fiscal 2018, then to a profit of Rs 20 crore in fiscal 2022 before falling back to Rs 7 crore in fiscal 2023. During the last five years, its sales grew at a CAGR of 10 per cent and profit showed a CAGR of 21 per cent. The bumper profit in fiscal 2022 enabled the company to cut its debt from Rs 21.59 crore in March 2021 to just Rs 3.39 crore. The company has a good return on equity (RoE) track record for the last three years at 63.7 per cent. Its debtor days have improved from 28,343 to 70.8 days and its working capital requirements have reduced from 11,688 days to 59.3 days.
Though the uptrend in the company's stock price could not be sustained on a drop in coal imports and the price came down from Rs 117 to Rs 40 now, the long-term prospects for the company are considered quite encouraging.
| FACE VALUE | 10 |
| CMP | 283.55 |
| 52 WEEK HIGH /LOW | 308/173 |
Bangalore-registered and Dubai-headquartered Aster DM Healthcare is a multinational healthcare company which at present operates in six GCC countries and India. It has a unique portfolio of specialized brands to serve the needs of patients in primary, secondary, tertiary and quaternary care, healthcare retailing, diagnostic labs, digital health and medical education. The company has carefully curated three distinct sub-brands under the Aster umbrella that cater to three very specific audiences. This ensures that Aster caters to the healthcare needs of a wide spectrum of people through various touch points ranging from hospitals and clinics to pharmacies, labs and home care.
The company, promoted by Azad Moo - a doctorturned-entrepreneur -- covers an array of healthcare services, including hospitals, clinics, pharmacies and healthcare consultancy services. In February 2022, the company signed an agreement with Novartis to collaborate on digital transformation and technical research, and in March 2022 it entered into a partnership with Siemens Healthineers for technology upgradation and digital optimization in the GCC and UAE facilities.
The company is doing very well on the financial front. During the last five years, its sales turnover has expanded more than two and a half times from Rs 595 crore in fiscal 2019 to Rs 1,534 crore in fiscal 2023, with the profit at net level spurting by over four times from Rs 48.079 crore to Rs 173.29 crore during this period. The company's financial position is very strong, with reserves at the end of March 2023 standing at Rs 2,458 crore - over 40 times its equity capital of Rs 500 crore. However, the company has not been paying any dividends.
Future prospects are quite encouraging due to new hospitals ramp-up in GCC. The company has a unique business model with a presence in India and a stabilized business with strong returns in GCC. Research anlaysts at Prabhudas Lilladher expect a 15 per cent EBIDTA CAGR over fiscal years 2023-25 as margins in its India business will gradually improve with brownfield expansion and new hospitals ramp-up in GCC. The company added total 300 beds in fiscal 2023 under the O&M asset-light model and achieved breakeven for Aster Narayana Athri hospital in Tirupati within the first quarter of its operations. Further, the same model was employed at the 100- bed at Medegowda hospital at Mandya in Karnataka in April 2023.
Aster is going in for restructuring of its business in GCC in the first half of 2024. The company is going to sell a stake in the business and the proceeds will not attract capital gains tax as it comes under the Mauritius-India tax treaty.
Again, the company intends to launch 250+ pharmacies in the next 5 years in partnership with the Al Hokair group of Saudi Arabia. What is more, it has announced a franchise agreement to run pharmacies in Bangladesh. All these developments suggest that prospects for the company going ahead are quite encouraging.
The company's shares (FV Rs 10) are quoted around Rs 280-285, which is quite an attractive price for investors as they are at a 25-50 per cent discount to Indian peers.
February 15, 2025 - First Issue
Industry Review
VOL XVI - 10
February 01-15, 2025
Want to Subscribe?
Read Corporate India and add to your Business Intelligence
Unlock Unlimited Access
Lighter Vein
1 Year *
Subscription
Rs 2400 /-
3 Year *
Subscription
Rs 6000 /-
5 Year *
Subscription
Rs 9000 /-
5
International
Subscription
$ 99.99
Read Corporate India and add to your Business Intelligence
Popular Stories
A modern-day enigma and a ramification of humanity's never-ending advancements, e-waste refers to the scum con- cealed by the outward glow of ever-advancing technology.
Archives
Office Address
Unit No. 405, 4th floor, Madhu Industrial Park, Avadh Narayan Tiwari Marg, Mogra Village Road, Andheri (East), Mumbai – 400069.
Call/Whatsapp
If you are interested in advertising with Corporate India, please don't hesitate to contact us. Our team is here to assist you with the process and answer any questions you may have. We look forward to the opportunity to work with you and help your business reach its full potential.
Fill out the form below to subscribe to our newsletter and never miss an update