Shares of Aster DM Healthcare, one of the largest integrated healthcare providers in GCC and India, jumped over 8 per cent to hit an intraday high of Rs 195 on BSE after the company announced that it has signed a Memorandum of Understanding with the Government of Tamil Nadu, India to set up healthcare facilities in the State.
The stock opened a tad higher at Rs 182.40 against the previous close of Rs 180.40. With a market capitalisation of Rs 9,638 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The MoU proposed an investment of Rs 500 crores in hospitals, pharmacies and laboratories in the State. This will help provide quality healthcare at affordable cost to the people of Tamil Nadu and generate employment for more than 3500 people, the company said.
"With 5 hospitals in Kerala including Aster Medcity, the flagship hospital of the group, the investment in Tamil Nadu will further solidify its presence in the South," it added.
The MoU was presented by Dr. Azad Moopen, Founder Chairman and Managing Director, Aster DM Healthcare, who met Shri M.K Stalin, Honourable Chief Minister of Tamil Nadu, on Saturday during his visit to Dubai.
According to MarketsMojo, the company has declared positive results for the last three consecutive quarters. However, it has a low ability to service debt as the company has a high Debt to EBITDA ratio of 3.90 times.
Currently, Aster has 14 hospitals, 9 clinics and 66 labs and patient experience centres in India, with an approximate investment of Rs 3000 crores.
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