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KMC Hospitals upgraded to hold after strong financials

KMC Speciality Hospitals (India) is a smallcap healthcare services company that has recently caught the attention of investors. The stock has been upgraded to a ‘Hold’ by MarketsMOJO on May 13, 2024.

One of the reasons for this upgrade is the company’s low Debt to Equity ratio, which is at an average of 0.06 times. This indicates a strong financial position and stability for the company.

In addition, the company has shown positive results in the last quarter, with its net sales reaching a high of Rs 49.12 crore and its PBDIT at Rs 14.41 crore. The operating profit to net sales ratio was also at its highest at 29.34%.

Technically, the stock is in a mildly bullish range and has shown improvement since May 10, 2024, generating a return of -1.82%. The key technical factor, KST, has also been bullish since May 10, 2024.

KMC Speciality Hospitals (India) has also outperformed the market, with a return of 45.79% in the last year, compared to the market’s return of 31.64%. However, with a ROCE of 22.3, the stock is currently trading at a very expensive valuation with a 9.6 Enterprise value to Capital Employed.

Despite its small size, the company has not gained much interest from domestic mutual funds, with them holding only 0% of the company. This could be due to their lack of comfort with the current price or the business itself.

Overall, KMC Speciality Hospitals (India) has shown strong financials and market-beating performance, but its expensive valuation and lack of interest from domestic mutual funds may be a cause for concern. Investors may want to hold onto the stock for now and keep an eye on any future developments. MarketsMojo

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