GPT Healthcare Makes Strong Stock Market Debut, Begins Trading at 16% Premium Over IPO Price.
The much-anticipated listing of GPT Healthcare exceeded market expectations on February 29, with the stock debuting at a premium of 16% over its IPO price on both the NSE and the BSE.
Despite initial optimism, GPT Healthcare’s stock quickly dipped to Rs 202 within minutes of trading after its impressive opening at Rs 215 on the NSE and Rs 216.15 on the BSE, marking a notable shift in its early trading dynamics.
Prathamesh Masdekar, a research analyst at StoxBox, suggested that the bed occupancy rates must show improvement for a more favorable impact on financial performance. Given the current scenario, Masdekar advised investors to take profits and reassess investment opportunities in the company post evaluating its quarterly performance in the near future.
Masdekar highlighted that the company’s bed occupancy rate lags behind its listed peers, and its profitability is at risk due to fluctuations in the cost of medical consumables, pharmacy items, drugs, and surgical instruments. He emphasized that the intricate nature of treatments and procedures conducted at its hospitals necessitates continuous investments in new technology and equipment, which can be expensive. Moreover, Masdekar noted that the company has not yet achieved successful expansion of its operations into other regions of India.
“We recommend high-risk appetite investors to ‘hold’ for the long term while those investors who wish to ‘add’ can wait and watch the space post-listing performance before taking any action,” advised Prashanth Tapse, senior vice-president of research and research analyst at Mehta Equities Ltd.
GPT Healthcare (ILS Hospitals) stands as a prominent regional corporate healthcare entity in Eastern India based on bed count and hospital presence as of fiscal year 2023. The company operates a network of mid-sized full-service hospitals under its brand, delivering comprehensive healthcare services, particularly emphasizing secondary and tertiary care.
Disclaimer: The views and recommendations mentioned above are those of individual analysts or broking companies, and do not represent the views of Bystox. We encourage investors to consult certified financial experts before making any investment decisions.