Equity Watch

CHENNAI MEENAKSHI MULTISPECIALITY HOSPITAL Likely to take a u-turn after bottoming out

Chennai Meenakshi Multispeciality Hospital (CMMH), formerly known as Devaki Hospital, is a 100-bedded hospital located in the heart of Chennai at Mylapore..It is headed by its CEO, Dr.V.Krishnamurthy, an eminent Rheumatologist.Financial performance of the hospital has improved during the last Q ended March 2012 and is expected to take a U-turn during the next few years .

 
Scrip Code : 523489      Company : CHENNAI MEENAKSHI MULTISPECIALITY HOSPITAL LTD.-$
Type Un-Audited Un-Audited Un-Audited Un-Audited Un-Audited Un-Audited
Period Ending 31-Mar-12 31-Dec-11 30-Sep-11 30-Jun-11 31-Mar-11 31-Mar-11
No. of Months 3 3 3 3 3 12
Description Amount(Rs. million)
Net Sales / Interest Earned / Operating Income 40.04 33.73 35.47 36.62 33.74 124.06
Other Income 0.73 0.50 0.52 0.39 0.46 1.58
Expenditure -31.74 -28.80 -35.33 -29.19 -31.02 -115.71
Interest -3.84 -3.93 -3.92 -3.95 -3.88 -14.76
Profit Before Depreciation and Tax 5.19 1.50 -3.26 3.87 -0.70 -4.83
Depreciation -1.15 -1.83 -1.81 -1.77 -1.55 -6.20
Profit before Tax 4.03 -0.34 -5.06 2.11 -2.25 -11.03
Net Profit 4.03 -0.34 -5.06 2.11 -2.25 -11.03
Equity Capital 74.69 74.69 74.69 74.69 74.69 74.69
Reserves 5.98 5.98 5.98 5.98 5.98 5.98
Basic EPS after Extraordinary items 0.54
Diluted EPS after Extraordinary items 0.54
Nos. of Shares – Public 3,517,362.00 3,517,362.00 3,517,362.00 3,517,362.00 3,517,362.00 3,517,362.00
Percent of Shares-Public 47.10 47.10 47.10 47.10 47.10 47.10
Operating Profit Margin 22.55 16.10 1.86 21.35 9.43 8.00
Net Profit Margin 10.06 -1.01 -14.27 5.76 -6.67 -8.89
Cash EPS 0.69 0.20 -0.44 0.52 -0.09 -0.65
  Notes Notes Notes Notes Notes Notes
  Detailed Detailed Detailed Detailed Detailed

The company’s market cap. at CMP is less than Rs. 6 crores ( equity of Rs. 7.5 crFV Rs.10 and CMP @ Rs. 8) and with loans amounting to about Rs.18 crores(see annual report ) .the enterprise value is much less than even the land cost on which the 100 bedded hospital is standing.Management have plans to start a medical college next to the hospital and expand the hospital to 200 beds. 

Buy at CMP is recommended for a term of 3-4 years.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

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