The Hindu Business Line : Indraprastha Medical gains on global healthcare status

AMONG the hospital stocks, Indraprastha Medical is getting increased attention of the market because of its improving status as one of the top global healthcare outfits and relatively low market price.

The stock today closed 4.38 per cent up at Rs 47.65 with a traded quantity at 3.25 lakh shares on the BSE.

According to brokers and analysts, institutional investors are showing greater interest in the counter recently after it got accreditation from the Joint Commission International (JCI), US, and became the first Indian hospital to achieve this.

A joint venture between the Government of Delhi and Apollo Group, the hospital is considered one of the largest for corporate clients in the world.

"With medical tourist flow beginning to arrive and international tour operators and medical insurers showing keen interest in the Indian healthcare infrastructure, [due to] cost and time advantage, Indraprastha is poised to become one of the top destinations for its various medical packages," said a fund manager.

"The country's hospital industry has been witnessing a major transformation in healthcare delivery with institution moving from a general to specialised and corporate-owned management and to medical insurance as also managed care. Indraprastha is in a unique position to take advantage of the changes," said Mr Rajesh Agarwal of CD Equisearch.

The hospital, which provides complete range of diagnostic, medical and surgical facilities, has treated over 25,000 overseas patients in the last 9 years.

Mr Ritesh Nair of Anagram Stockbroking pointed out that it has planned to invest Rs 18 crore to further upgrade its facilities. The hospital has 562 beds currently and would add 57 more by November 2005. Another 300 beds are in the pipeline. "Occupancy rates as well as average rates are expected to go up going forward leading to higher profitability," Mr Nair added.

Total FII holding in the company has increased to 2.66 per cent in June 2005 from zero investment in December 2004.

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