FORTIS MALAR HOSPITALS a contra pick

Fortis Malar Hospital http://www.fortishealthcare.com/Malar/ is established as one of the largest corporate hospitals in Chennai providing quality super specialty and multi specialty healthcare services. Fortis Malar Hospital, with 180 beds, focuses on providing comprehensive medical care in the areas Cardiology, Cardiac surgery, Neurology, Neuro surgery, Orthopedics, Nephrology, Gynecology, Gastroenterology, Pediatrics, Diabetics and others...

Today it is one of the preferred hospital in Chennai for patients in several parts of Tamil Nadu and other parts of the World. We provide medical expertise with the finest talents amongst doctors, nurses, technicians and management professionals in an environment that enables them to deliver the highest quality of healthcare through state-of-the art facilities that aims to leave no stone unturned in perfecting ever enhancing patient centric care. Enhanced by the warmth & care of the professionally trained nurses and housekeeping staff, Fortis Malar Hospital at Chennai recreates the comfortable ambience of home within its four walls.

3 years back
-------------
The Delhi-based company had acquired a 46 per cent stake in Chennai-based publicly listed company Malar Hospital for Rs 25.76 crore ($6.3 million) back in October 2007. The acquisition was done through Fortis' wholly-owned subsidiary International Hospital Ltd (IHL) in association with Ranbaxy group company Oscar Investments. Fortis aslo made an open offer buying another 20 per cent equity from Malar’s public shareholders. The 180-bed multi-speciality Malar Hospital then had  an enterprise value of Rs 52 crore and an equity value of Rs 42 crore plus debt of Rs 14 crore. Malar is a leading centre for cardiac care, renal transplants, neurosurgery, limb reconstruction surgery and maxillo-facial orthodontology. Fortis, though, has a task at hand at Malar, which has an accumulated loss of around Rs 20 crore and also mounting debt
.Now what is hot at fortis malar
------------------------------
After 3 years of acquisition of 46 percent stake by FORTIS, the group has increased its stake in fortis malar to 63.20 percent as on 30.09.2010 held by International Hospital Ltd holds 93.01 lakh shares or  50.02 percent and Oscar Investments Ltd holds 24.51 lakh shares or  13.18 percent shares

Further the earlier promotor group holds 18.56 lakh shares or  9.98 percent in fortis malar hospitals

At CMP of Rs. 35.15 the Market capitalisation is Rs 65.36 crore and trading at forward PE of 16.5 x and forward P/BV of  2.9 x as against 44 x and 4.2 x respectively of the peer in the industry

Three years after Fortis Healthcare acquired Malar hospital,  Fortis completed its rebranding exercise from Malar Hospital to Fortis Malar on 26 October 2010.
http://timesofindia.indiatimes.com/city/chennai/Malar-hospital-completes-rebranding-to-Fortis-Malar/articleshow/6817751.cms

Tamil Nadu is the hub of medical tourism and has seen a rise in the number of patients seeking medical care. It is encouraging to see leading hospitals take interest and develop the health care scene in Chennai," said M R K Paneerselvam, the state minister for health and family affair who inaugurated the revamped hospital.

The new hospital will focus on providing comprehensive medical care in areas of cardiology, cardio-thoracis surgery, neurology, neuro surgery, orthopedics, nephrology, gynecology, gastroenterology, paediatrics, diabetics and others, said Bhavdeep Singh the CEO of Fortis Healthcare and chairman of Fortis Malar Hospitals.

http://www.fortishealthcare.com/Malar/news/210_19_19_20/Fortis-Malar-Hospital-conducts-rare-brain-by-pass-Neuro-surgery.html

LATEST FINANCIALS
Fortis Malar Hospitals Ltd. recorded a total income of Rs.40 crore during the half year ended 30th september 2010, a growth of 35.3% compared Rs.29.6 crore during the corresponding half year of the previous year.

Operating Profit (EBIDTA) for the half year ended 30th september 2010 stood at Rs.5.35 crore compared to Rs.4.38 crore achieved in the corresponding period of the previous year an growth of 22.1 percent

The Profit after Tax (PAT) for the half year ended 30th september 2010 stood at Rs.1.89 Crores as against the Rs. 1.78 crore achieve during previous year an increase of 6.2 per cent

Increase in depreciation and tax by 40 percent was the reason for reduction in NPM margin

The half year was marked by significant activity and this was in great part driven by a strong focus on clinical outcomes and patient care. To this end, the organization continues to invest in its clinical expertise with the addition of several new doctors covering multiple medical specialties. In addition, the work related to the facility renovation has continued and many new dimensions have been added to the infrastructure of the hospital. This includes a new Radiology department with a 64 slice CT Scan as well as the introduction of a new blood bank. With all of this in place, the feedback from patients and attendants is positive and the occupancy numbers continue to be strong.It should also be noted that the company has tied up with various agencies for increasing International business which has started showing encouraging results.