This Healthcare Services Stock rose 10% in the first hour of market open on Thursday after the promoter entity released information on huge capex plans shortly after markets opened on Thursday. The stock has been on an uptrend since Q4 FY23 and is currently 6% away from the 52 week high.
The stock has seen consistent volume averages over weeks and months but today saw ~5x weekly average volume.
According to Dr Agarwal’s Eye Hospital’s (“DAH”) exchange filing, it has raised USD ~80 million or Rs. ~665 crores for major capex plans from their existing investors Temasek and TPG Growth. The plan is to expand its centers from 150+ currently to 300+ within the next 3 years. The plan also involves expanding geographic presence in Tier 2 and Tier 3 cities in existing states and also expanding into new states.
Along with the expansion of the network, the company will also be investing in technological advancements for vision diseases such as Diabetic Retinopathy and Age-related macular degeneration.
The stock has a market cap of Rs. ~881 crores and is a multibagger, returning ~140% in a 1 year period, which means if you invested Rs. ~1 lakh into it around a year ago, it would have currently been worth Rs. ~2.4 lakh!. This stock has further return opportunities, indicated by its much lower P/E of 21.59 vs industry average of 34.52 and high ROE of 38.6%.
Dr. Agarwal’s Group of Eye Hospitals started as a single facility in Chennai in 1957. The group is led by Chairman Prof. (Dr.) Amar Agarwal. He is a pioneer in the field of eyecare, known for several ground breaking surgical innovations such as Glued IOL, PDEK and PhakoNit.
Dr. Agarwal’s Eye Hospitals now has a total network presence of 151 centers (140 hospitals and 11 eye clinics) spread across India and Africa. The Group’s presence spans 10 countries and over 14 states in India. Its facilities are staffed by a team of over 500 ophthalmologists and 3500 employees
Written by Sandeep R
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