“Ask and it will be given to you; seek and you will find; knock and the door will be opened to you. For everyone who asks receives; the one who seeks finds; and to the one who knocks, the door will be opened. Matthew 7:7-8

26 Feb 2018

Share market--a Broker choice/ A multibagger share

KMC Speciality Hospitals KMC Speciality Hospitals runs a chain of hospitals including those in Chennai, Tiruchirapalli, Hosur, Karaikudi, Salem etc. Some of the hospitals provide full fledged services catering to a very wide array of needs and requirements in healthcare. The company over the next few years is likely to benefit from the growing healthcare needs of patients as well as value addition. The company runs 1200 plus beds across all its centres. Kauvery Hospital deploys the Avant-Grade technology, especially in diagnostics and remedial care in heart diseases, transplantation, vascular and neurosciences medicine. KMC Hospitals: Reasonably valued For the quarter ending Dec 31, 2017 the company reported a decent performance. The net profits at the company nearly doubled to Rs 2.01 crores from Rs 1.29 crores in the quarter ending Dec 31, 2016, 2016. Revenues at the company was Rs 19.37 crores. We expect the hospital to continue to show good growth in the coming quarters. The hospital can report an EPS of Re 1 by 2019-20. Hospital stocks generally get a very high p/e multiple of 40 to 50 times. If we apply the same for KMC Speciality, the stock should trade at Rs 40 at the very least in the coming years. At the current price of Rs 21, the stock is not a bad bet.

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