Shares of Aster DM Healthcare jumped 6 per cent in Thursdays trade ahead of its boards meeting on a proposed share buyback later in the day.Following the development, the stock rose 6.11 per cent to hit a high of Rs 170 on BSE.Aster DM Healthcare (Aster) comprises one of the largest healthcare networks.
It includes 25 hospitals with a bed capacity of 4,794, 231 pharmacies and 115 clinics across Gulf Cooperation Council (GCC) countries and India.GCC contributes 81 per cent of the firms revenues while India accounts for the rest.In the hospitals' segment, the company covers across-the-class income population in the GCC region under Medcare (high income), Aster (mid-income) and Access (lower income) brands.
In India, it has a network of 13 hospitals and eight clinics mainly in south India.In a December note, ICICI Securities said that while the India expansion remains on an investment curve, a firm footing and FCF generation from the GCC set-up is keeping the entire scheme of things under control, especially when the company is pursuing aggressive expansion in both GCC and India albeit via an asset-light model.We are positive on Asters integrated business model and expect a gradual improvement in margins and RoCE on the back of higher occupancy and capacity optimisation in new assets from FY20E onwards, the brokerage said last month.