KIMS shares turn multibagger, rise 5% today to hit new highs after block deal

Shares of Krishna Institute of Medical Sciences (KIMS) surged about 5 per cent on Wednesday to hit a new 52-week high after the bulk deal buzz in the recent times. The hospital chain has turned into a multibagger within two years of listing in June 2021.

Shares of KIMS surged about 5 per cent to 1,804 on Monday, hitting its new 52-week high, as the company commanded a total market capitalization of around Rs 14,500 crore. The scrip had settled at Rs 1,720.95 on Tuesday. The stock has gained about 13 per cent in the last one week.

On Tuesday, General Atlantic sold more than 40.7 lakh shares of the company, accounting for around 5 per cent stake, through a block deal at a price of Rs 1,710 per share. The company saw buying from SBI Mutual Funds, which bought almost the entire share sale at an average price of Rs 1,710.

Shares of KIMS have surged about 60 per cent in the last one year, while the stock has surged about 119 per cent from its issue price at Rs 825. The company was listed at the bourses in June 2021, when the company raised about Rs 2,144 crore via its primary stake sale.

Incorporated in 1973, Krishna Institute of Medical Sciences is one of the largest healthcare groups in Andhra Pradesh and Telangana, which provides multidisciplinary healthcare services with a key focus on tier II and tier III cities. The company offers a comprehensive range of healthcare services.

For the March quarter, KIMS reported consolidated revenue growth of 54.7 per cent year-on-year (YoY0 to Rs 575.9 crore, while it was up 2.4 per cent when compared to the December quarter. Consolidated net profit recorded an YoY growth rate of 18.5 per cent to Rs 99 crore.

KIMS remains among the high conviction picks of Prabhudas Lilladher from the healthcare sector. "Expansion plan is on track. We remain structurally positive on hospital space and expect this momentum to continue in FY24 with improvement in occupancy, better case mix and sustainability of current ARPOB," it said.

"KIMS saw healthy improvement in occupancy levels in line with historical QoQ trend and it is likely to add about 1,500 beds over the next three years," said ICICI Securities, which has also shortlisted the stock in its top picks from the sector.

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