Fortis Healthcare - Deleveraging picks up pace - AXIS Securities

Fortis Healthcare (FHL) monetized Rs20 bn in Q3 by transferring clinical establishments to Religare Health Trust - RHT. The company also announced sale of its 64% stake in Dental Corporation (DC), Australia for AUS $ 270 mn (subject to regulatory approvals). The proceeds from these transactions would be used to pare down debt and strengthen balance sheet. Moreover, revenue visibility improves since India would constitute over 70% of net revenue (vs. 50% earlier) post DC sale. We believe these are steps in the right direction and shall enable Fortis to turnaround from FY14E.

We reduce our DCF-based target price to Rs 125 (Rs 151 earlier) to factor in sale of Dental Corp.

Source : Equity Bulls

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