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Fortis Healthcare Ltd Stock Analysis

Mid Cap
Evaluated by 2681 users | BSE: 532843 | NSE: FORTIS |
Hospital & Healthcare Services

Fortis Healthcare (FHL) incorporated in 1996 is engaged in running chain of hospitals. FHL started its hospital operations in 2001 through its flagship Mohali Hospital. Fortis Healthcare Limited is a leading integrated healthcare delivery service provider in...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Fortis Healthcare Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 5.65%3.69%2.69%1.71%0.76%0.27%1.03%0.58%3.52%7.38%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 265281353369611612645659656702
Y-o-Y Gr. Rt.-6%25.5%4.5%65.5%0.2%5.5%2.2%-0.5%6.9%
Adjusted EPS (Rs.) 3.461.760.520.33-0.41-0.7-0.47-0.321.628
Y-o-Y Gr. Rt.--49.1%-70.5%-36.5%-224.2%NANANANA393.8%
Book Value per Share (Rs.) 74.4278.9878.9980.1679.580.6582.1280.93110.43117.56
Adjusted Net Profit 14071.421.215.3-18.8-32.5-24.2-16.5123604
Net Op. Cash Flow (Rs. Cr.) -0.11001.5-44.7-144-76121.7-14.8-61.399.9
Debt to Cash Flow from Ops -8,809.7411.02697.65-28.64-8.57-1.4129.77-37.52-23.677.2
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Fortis Healthcare Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.4%2.8%2.9%6.9%
Adjusted EPS 9.8%NANA393.8%
Book Value per Share 5.28.112.76.5
Share Price 9.6% 5.9% 14.5% 89.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 6.12.290.660.44-0.51-0.88-0.6-0.391.957.01
Operating Profit Margin (%) 11.591.791.29-21.64-20.39-20.42-12.11-5.69-18.749.79
Net Profit Margin (%) 52.8725.386.024.15-3.08-5.32-3.75-2.518.6686.04
Debt to Equity 0.150.350.320.340.340.290.150.130.170.08
Working Capital Days 2,3112,5731,9711,9011,3311,373939536627769
Cash Conversion Cycle 19192945175-15-37-51-67
Entity Percentage Holding
Promoters 31.17%
Institutions 47.99%
Non-Institutions 20.84%
Pledged *0.230.230.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Fortis Healthcare Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Fortis Healthcare Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Fortis Healthcare Ltd's performance infers:

Fortis Healthcare Ltd earnings have grown by 0%, whereas share price has appreciated 5.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Fortis Healthcare Ltd share prices over the last 10 years. Here is what we found out:

Fortis Healthcare Ltd share price has appreciated 3.5% annually over the past ten years.

Fortis Healthcare (FHL) incorporated in 1996 is engaged in running chain of hospitals. FHL started its hospital operations in 2001 through its flagship Mohali Hospital. Fortis Healthcare Limited is a leading integrated healthcare delivery service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities.

On November 13, 2018, IHH Healthcare

Fortis Healthcare (FHL) incorporated in 1996 is engaged in running chain of hospitals. FHL started its hospital operations in 2001 through its flagship Mohali Hospital. Fortis Healthcare Limited is a leading integrated healthcare delivery service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities.

On November 13, 2018, IHH Healthcare Berhad, Malaysia acquired 31.10% stake in the Company and appointed majority of board of directors, thereby, becoming the controlling shareholder of the Company.

Business area of the company

The company is a leading integrated healthcare delivery service provider. The Company is primarily engaged in the business of healthcare services. The Company holds interests in its subsidiaries, associates and joint ventures which manages and operates a network of multi-specialty hospitals and diagnostics centres.

Awards & Accolades

2016-17

  • Fortis adjudged ‘Hospital of the Year in India’ and ‘Digital Savvy Hospital of the Year’ at the 2016 APAC Healthcare and Medical Tourism Awards
  • Fortis Hospital, BG Road, wins ‘Best Medical Tourism Hospital’ Award
  • Fortis Hospital, Mohali, wins coveted Asia Pacific Hand Hygiene Excellence Award
  • Fortis Escorts Hospital, Jaipur, wins Quality Council of India recognition for the fourth time in a row
  • Fortis C-DOC bags ‘Best Diabetic Care Centre in India’ award for the 3rd time in a row
  • Dr Bidhu K. Mohanti, Director and Head, Radiation Oncology, FMRI, receives Lifetime Achievement Award
  • Fortis creates history at the CII 17th National Awards for Excellence in Energy Management; four hospitals win top honours
  • Fortis Hospital, Ludhiana wins Best Multi-speciality Hospital and Best Quality in Service Delivery awards
  • Fortis Mulund wins two awards each at CIMS Healthcare Excellence and 3rd Asia Healthcare Excellence Awards
  • Dr Narottam Puri receives Lifetime Achievement Award at FICCI 8th Annual Healthcare Excellence Awards, 2016

2017-18

  • Team Nursing of Fortis Mulund won two prestigious honours at the 7th International Patient Safety Conference, held in Mumbai
  • Two Fortis luminaries, Dr Ashok Seth and Dr Ashok Rajgopal, received the prestigious Dr B. C. Roy National Award from the President of India.
  • The Pharmacy Team at Fortis Hospital, Mulund, has received the 'Pharmacie de Qualite' certification and has been honoured with Platinum rating
  • Fortis Healthcare won the prestigious 'Gurgaon Best Employer Brand Award 2017
  • Fortis Hospital, Mulund, won an award for its project, 'One Fortis: Training in Action' at the Asian Hospital Management Awards 2017.
  • Fortis Hospitals, Bengaluru, bagged three awards, ‘Best Patient Safety Initiative,’ ‘Best CSR Practices in Healthcare’ and ‘Best Use of Social Media and Digital Marketing’ at Times Television Network - National
    Marketing Excellence Awards - 2017
  • Fortis Escorts Hospital, Jaipur, won the National Quality Council of India (QCI) D. L. Shah Award for the fifth time in a row
  • Fortis Escorts Hospital, Faridabad, was recognised as the 'Best Heart Hospital' at the Double Helical State Health Awards 2017

2018-19

  • Fortis Hospital, Mulund, earned the JCI re-accreditation for the fifth time in a row
  • Fortis Healthcare won the ‘Business Process Management (BPM) Asia Master Award’ for the Enterprise level at the BPM Asia Star Championship 2018 organised by CII
  • Fortis Healthcare received the prestigious FICCI Healthcare Excellence Awards 2018 in the Social Initiative category for the 'Umeed Dhadkan' programme
  • Fortis Healthcare's MORETOGIVE ad film won a Bronze at the Indian Content Marketing Awards
  • Fortis Hospital, BG Road, Bengaluru, was ranked by the Medical Travel Quality Alliance (MTQUA) as one of the Top 10 World’s Best Hospitals for Medical Tourism for 2018
  • For the fifth consecutive year, Fortis C-DOC, New Delhi, was named the ‘Best Hospital in India Diabetic Care’ recognition at the Current Index of Medical Specialities Healthcare Excellence Awards 2018

2019-20

  • Economic Times Healthworld Hospital Awards’20
  • FICCI Medical Travel Value Awards 2019
  • Excellence in Cardiac Sciences
  • Joint Commission International (JCI) accreditation
  • National Award for Excellence in Energy Management, 2019
  • Best Hospital to Work For
  • International Patient Safety Congress
  • Most Trusted Diagnostic Centre of the Year

Milestones

  • 2008: Fortis Hospital, Noida Becomes first hospital In Uttar Pradesh to receive the coveted NABH Accredita
  • 2008: Fortis Escorts Becomes First Hospital in Faridabad to Launch Total Knee Replacement Unit
  • 2009: Announces taking over of the operational and management control of the 200-bed Apollo Modi Hospital in Kota (Rajasthan) for providing superior healthcare services in the region.
  • 2009: Launches dental centre at Malar Hospital, Chennai, with the aim of promoting dental tourism in the city. The Fortis Dental Centre has been floated on partnership basis with dental chain Axiss Dental
  • 2010: Completes acquisition of 23.9% stake in Parkway Holdings
  • 2010: Divests entire stake in Parkway to Khazanah
  • 2010: Adds cancer institute in its hospital portfolio
  • 2010: Inks pact with Republic Of Burundi
  • 2010: Inks MOU with RAK Hospital and Tanzania's RMC
  • 2010: Strengthens presence in Central India Network; touches 50 hospitals mark
  • 2010: Acquires O P Jindal Hospital in Raigarh, Chhattisgarh
  • 2010:  Unveils new hospital in Shalimar Bagh in Delhi
  • 2010: Adds Vivekanand Hospital to its network
  • 2011: Signs MoU with Utah University for specialized care in emergency medicine
  • 2011: Changes name of company from Fortis Healthcare Ltd to Fortis Healthcare (India) Ltd.
  • 2011: Adds 100 bed Lifeline Hospital at Alwar in Rajasthan,
  • 2011: Fortis Healthcare Ltd acquired Super Religare Laboratories (SRL), South-east Asia's largest diagnostics laboratory network to further strengthen presence across the healthcare value chain
  • 2012: Fortis Healthcare Ltd acquired Fortis Healthcare International Pte. Ltd.-Fortis Healthcare Ltd launched the first colorectal hospital in Singapore, becoming the first Indian hospital chain with a greenfield hospital abroad'
  • 2017: Fortis Healthcare and wayForward collaborate on a unique emotional wellness programme to combat workplace stress
  • 2018: Board of Fortis Healthcare approves the binding investment proposal from IHH Healthcare for an investment of Rs 4,000 crore at a per share price of Rs 170
  • 2019: Fortis join hands with Tips for #Music4MentalHealth Initiative
  • 2019: Fortis School Mental Health Programme initiates internship for students
  • 2020: Fortis rolls out e-Consultations for remote patient care in 23 hospitals across multiple locations in India
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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