Aster opens its 200th pharmacy, stock hits 52-week high

Stocks

Aster Pharmacy operates in Karnataka, Kerala and Telangana and will be looking at other states in the coming years to expand its presence

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Shares of private healthcare service provider Aster DM surged in the morning trade on September 6 and hit a 52-week high of Rs 261 on the BSE, after the company said it had opened its 200th pharmacy in the country.

In 18 months, its retail chain had gone from 1 to 200 in the country, the company said in a press release.

With the latest one, it opened the 58th Aster Pharmacy in Kerala. “In our endeavour to bring omnichannel healthcare delivery to the doorsteps of people, we are adding more pharmacies to our network of hospitals, labs, clinics and online consultation platform,” Aster DM Healthcare founder- chairman and managing director Dr Azad Moopen said.

Aster Pharmacy operates in Karnataka, Kerala and Telangana and will be looking at other states in the coming years to expand its presence.

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“We have been consistently witnessing a rising demand from different cities across India where people always look for trustable brands offering reasonably priced, easily available pharmaceutical goods,” Aster Pharmacy CEO Rama Krishna D said.

Aster DM reported subdued performance in Q1FY23 on the back of losses from new hospitals commissioned in the Gulf Cooperation Council  (GCC) region. However, the company has guided EBITDA margins to improve to 17-18 percent for GCC hospitals by Q4.

When it comes to India hospital business, the company is aiming for 18 percent and 20 percent operating profit margin by FY23 and FY24, respectively.

Brokerage firm Prabhudas Lilladher expects 9 percent EBITDA CAGR over FY22-24E. “Margin in its India business will gradually improve with brownfield expansion and new hospitals ramp-up in GCC,” it noted. After Q1FY23 numbers announcement, it had a “buy” rating on the stock with a target price of Rs 234.

At 11.23 am, Aster was trading 6.17 percent higher on the BSE at Rs 255.50.

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