Aster unveils its 200th drugstore, the stock strikes a 52-week high

7 Sep 2022 , 08:32 AM

After Aster DM announced that it had launched the 200th drugstore in the nation, the company’s shares soared in the morning trade on September 6 and reached a 52-week high of Rs261 on the BSE. According to a press statement from the firm, its retail chain across the nation increased from 1 to 200 in just 18 months.

The 58th Aster Pharmacy in Kerala was inaugurated with the most recent one. Dr. Azad Moopen, the founder-chairman and managing director of Aster DM Healthcare, said that the company is expanding its network of pharmacies as part of its effort to bring omnichannel healthcare delivery to people’s homes. The network already includes hospitals, labs, clinics, and an online consultation platform.

In order to increase its footprint, Aster Pharmacy is now operating in the states of Karnataka, Kerala, and Telangana. Aster Pharmacy CEO Rama Krishna D remarked, “We have been continually noticing an increasing demand from different cities throughout India where consumers usually hunt for trustworthy brands giving fairly priced, simply accessible pharmaceutical items.”

Aster DM reported a weak Q1FY23 performance owing to losses from newly opened hospitals in the Gulf Cooperation Council (GCC) area. However, the business forecasts that by Q4, GCC hospitals’ EBITDA margins would increase to 17—18%. By FY23 and FY24, respectively, the company hopes to achieve operating profit margins of 18 and 20 % in the hospital sector in India.

Over the period of FY22—FEB24E, brokerage company Prabhudas Lilladher anticipates a 9% EBITDA CAGR. With the brownfield expansion and new hospital ramp-up in the GCC, the margin in its India business would progressively increase, it was highlighted. It has a “buy” recommendation on the company with a target price of Rs234 following the release of Q1FY23 financial results.

For feedback and suggestions, write to us at [e-mail]