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Jhunjhunwala, MFs, FPIs raise stake in this midcap hospital chain

Jhunjhunwala bought 75,00,000 shares of the company to bring his stake in the firm to 2.65 per cent.

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Last Updated: Jan 22, 2020, 12.58 PM IST
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Rakesh Jhunjhunwala bought 75,00,000 shares of the company to bring his stake in the firm to 2.65 per cent from 1.66 per cent in the September quarter.
Ace investor Rakesh Jhunjhunwala, domestic fund managers and overseas investors increased their stake in Fortis Healthcare in the October-December quarter, the company’s latest shareholding pattern show.

Rakesh Jhunjhunwala bought 75,00,000 shares of the company to bring his stake in the firm to 2.65 per cent from 1.66 per cent in the September quarter.

Mutual funds also increased stake and now hold 4.99 per in the hospital chain. The figure stood at 3.69 per cent during the preceding quarter ended September 30. ICICI Prudential Equity and Debt Fund held 1.16 per cent and Nippon India Retirement Fund owned 3.31 per cent stake in the company.

Likewise, holdings of foreign institutional/portfolio investors surged to 43.24 per cent from 38.69 per cent during the same period. Number of total FPIs holding shares of the company increased to 193 from 163 earlier.

Meanwhile, YES Bank liquidated either part or full 6.56 per cent stake in the company during the quarter. Axis Bank also brought down its stake to 1.19 per cent from 1.26 per cent.

In the last three years, the stock has underperformed Sensex by a wide margin. The scrip has dipped 21 per cent, while the 30-share pack gained 53 per cent during January 2017-2020.

Fortis Healthcare has also underperformed its peers in the last one year. The stock is up 7.22 per cent against 92.33 per cent jump in Narayana Hrudayalaya and 22.81 per cent gain in Apollo Hospitals.

Brokerages recently turned bullish on domestic hospitals. Citi in an October note had said that investment phase for these companies was ending and RoCE improvement will drive re-rating.

“Leading hospitals are entering a phase of consolidation after adding significant capacity in recent years. We see meaningful operating leverage as occupancy rises, translating into better margins and return ratios, which in turn should help valuations,” it added.

Elara Capital in December advised buying Fortis with a target at Rs 175, a potential upside of 22 per cent from the current level.

Shares of Fortis Healthcare closed 2.27 per cent higher at Rs 146.50 on BSE.

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