KIMS continues to strengthen its healthcare empire with further Sarvejana healthcare acquisition

The day commenced with both Sensex and Nifty trading lower, each witnessing a decline of 0.53%. As the trading session progressed, the market sentiment remained bearish, leading to closing on a lower note, with Sensex and Nifty declining further by 1.02% and 1.05%, respectively.

Today, Krishna Institute of Medical Sciences Limited has strategically increased its investment by acquiring an additional 2.49% stake in its subsidiary, M/s. Sarvejana Healthcare Private Limited. As a result of this well-considered acquisition, the Company’s total holding in Sarvejana Healthcare now stands at an impressive 59.10% of the total share capital of the subsidiary.

This move reflects the Company’s commitment to strengthen its presence and influence in the healthcare domain while fostering a robust and symbiotic relationship with its subsidiary.

In this volatile market sentiment, the shares of Krishna Medical Institution Limited plunged 2.55%. The company’s current market capitalisation is Rs 14,794.34 crore.

On chats, the 200-day moving average (DMA) of the stock stood at Rs 1557.09 on August 02, while the 50-DMA was at Rs 1773.64. If a stock trades well above 50-DMA and 200-DMA, it usually means the immediate trend is upward. On the other hand, if the stock trades well below 50-DMA and 200-DMA both, it is considered a bearish trend and if trades between these averages, then it suggests the stock can go either way.

Company profile

Incorporated in 1973, Krishna Medical Institution Ltd (KIMS) stands as a prominent and expansive corporate healthcare group, catering to the needs of patients in Andhra Pradesh and Telangana. Renowned for its vast scale, the company provides a wide array of multidisciplinary healthcare services, encompassing primary, secondary, and tertiary care.

Operating in 2-3 tier cities, KIMS extends its reach even further by offering a quaternary healthcare facility in tier-1 cities, making it a comprehensive and well-established player in the healthcare sector.

Over the past five years, the company has achieved an impressive CAGR of 55.4% in terms of profit, reflecting its strong financial performance. Additionally, the company boasts a commendable track record of return on equity (ROE), with a consistent 25.5% ROE over the past three years.

Furthermore, the stock has experienced remarkable buying activity, resulting in a substantial surge of over 45% in the last two years, indicating growing investor confidence and market interest in the company’s prospects.

Keep a close eye on this trending stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.