Rs 40/Share Dividend: April 23 Fixed As Record Date; Buy The Healthcare Stock To Be Eligible?

As of Monday's closing session, Fortis Malar Hospitals Limited's market valuation was Rs 126.68 Cr, making it a small-cap healthcare firm. One of India's top providers of comprehensive healthcare services is Fortis Healthcare Limited, an IHH Healthcare Berhad company. With 28 healthcare centers, more than 4,500 functioning beds (including O&M facilities), and more than 400 diagnostic centers (including joint ventures), it is among the largest healthcare organisations in the nation. India, Nepal, Sri Lanka, and the United Arab Emirates (UAE) are the places of operation of Fortis. Following the Board of Directors' announcement of a substantial dividend of Rs 40 per share, the shares of Fortis Malar Hospitals ended on the BSE on Monday at a 20% upper circuit limit, or Rs 67.59 a share.

Fortis Malar Hospitals Dividend

"Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), this is to inform you that the Board of Directors of Fortis Malar Hospitals Limited ("the Company") at their adjourned meeting held today inter-alia considered and approved declaration of Interim Dividend of Rs. 40/- (Rupees Forty only) per equity share of Rs. 10/- each on the entire issued, subscribed and paid-up share capital of the Company of 1,87,41,759 equity shares of the nominal value of Rs. 10/- (Rupees ten only) each. The Company had, in its postal ballot dated November 30, 2023, in respect of the divestment of the business operations of Malar hospital, stated that, "the management/ Board of the Company will thereafter endeavour to distribute the available surplus funds of the Company to its Members in the most optimal and efficient manner and in compliance with applicable law and regulations," said Fortis Malar Hospitals in a regulatory filing.

"In furtherance of the abovementioned obligations and in discharge of its fiduciary duties, the Board has decided to declare this interim dividend of 400% (on face value of Rs.10 per share) which it believes is optimal after taking into consideration various factors including Company's obligations under various agreements, as well as contingencies and available distributable free reserves. As intimated to the Stock Exchanges vide our letter dated April 8, 2024, interim Dividend will be paid to those members whose names appear in the Register of Members of the Company and as beneficial owners in the Depositories, as on the Record Date fixed for the purpose i.e., April 23, 2024. The dividend will be credited to the account of the shareholders, or the dividend warrant in respect thereof will be dispatched within 30 days from the date of its declaration," the company further added in the stock exchange filing.

Fortis Malar Hospitals Financials

For the October-December quarter of FY24, Fortis Healthcare Ltd. reported a 5.6 percent year-on-year (YoY) decline in net profit, to Rs. 134 crore, from Rs. 142 crore in the corresponding quarter of FY23. The hospital operator had a 7.7% rise in its consolidated revenue from Rs 1,560 in Q3FY23 to Rs 1,680 crore in Q3FY24. During the reporting quarter, the company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) was Rs 284 crore, compared to Rs 276 crore during the same period in FY23. In Q3FY24, the EBITDA margin was 16.9%, which was a 17.7% margin in Q3FY23. Fortis Malar Hospitals is yet to declare its Q4FY24 results.

Fortis Malar Hospitals Share Price Target

"Fortis Malar Hospitals Limited is a small-cap segment company that offers super specialty and multi-specialty healthcare services. The company is closely engaged in establishing hospitals and clinics to conduct healthcare for society in various branches of medicine. Recently, it has come in the news for declaring a cash dividend of Rs. 40 per share, when the current market price stands at just Rs.67, garnering the interest of investors. The ex-dividend date for the payout is scheduled for April 23, 2024. Notably, the company has also delivered a 14.73% y-o-y gains, displaying its profitable business fundamentals. Today, the company stock witnessed a surge of 19.99% with a gap opening, which could lead to potential wealth creation. Given the current momentum and the company's business fundamentals, the current price range of Rs.60-70 acts as a lucrative entry point. However, to maximize gains and minimize losses, individuals should chase the target of Rs.77-100, while setting their stop loss at Rs. 52 with a holding period between 1 and 4 months. Those who intend to bet on this stock before the scheduled ex-dividend date to bag the earnings should consider setting their stop loss at Rs.52 to maximize gains and protect capital," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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