Recommendation from Miscellaneous and Hospital & Healthcare Sector

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.

VA TECH WABAG LTD.
CMP - ₹385.35
BSE CODE 533269
Volume 1,32,324
Face Value ₹2
Target ₹400 - 410
Stoploss ₹366 (CLS)

Va Tech Wabag is a global leader in the water industry backed by rich experience spanning over 99 years. Being a pure-play water technology multinational, the company offers a complete range of technologies and services for total water solutions in both municipal and industrial sectors. In Q3FY23, the net sales of the company surged by 12.6 per cent from last year’s same quarter to ₹745.48 crore. The EBITDA level of the company dipped 5.86 per cent from the December 2021 quarter to ₹76.89 crore. The net profit of the company rose by 6.75 per cent from the corresponding quarter last year to ₹47.16 crore. The company announced on March 31, 2023 that it has secured a DBO order worth approximately ₹4,400 crore for 400 million litres per day of the Sea Water Reverse Osmosis Desalination Project from CMWSSB, enhancing its leadership position in the global desalination market. This landmark project will provide stable source of drinking water and enhance the water security situation for Chennai. Hence, we recommend BUY.

Kovai Medical Centre & Hospital Ltd.
CMP - ₹1,990.45
BSE CODE 523323
Volume 583
Face Value ₹10
Target ₹2,080 - 2,140
Stoploss ₹1,905 (CLS)

Kovai Medical Centre and Hospital Ltd., the most trusted multispecialty hospital in the southern Indian city of Coimbatore, offers cutting-edge medical services. It has developed a reputation in a variety of fields, including interventional radiology, its multi-organ transplant centre, the comprehensive cancer centre, critical care and trauma and the heart institute. Considering the hospital’s financial performance, it reported a significant growth of 15.69 per cent from ₹228.57 crore registered in Q3FY22, recording total revenue of ₹264.43 crore in Q3FY23. When comparing the net profit for the third quarter of FY23 to the same quarter last year, we see that it has climbed by 19.46 per cent from ₹26.06 crore to ₹31.14 crore. With 16-18 per cent return on equity and capital employed, the company displays strongprofitability. Some of the positives include a sizeable promoter ownership and significantly lower PE compared to its competitors and the overall industry. Hence, we recommend BUY.

(Closing price as of Apr 18, 2023)