Current price is more than the intrinsic value

Intrinsic Value

Stock has not been able to generate better return on equity than bank FD

ROE vs FD rates

Stock doesn't offer attractive dividend returns

Dividend Returns

Good time to consider, as stock is not in overbought zone

Entry Point

Stock not in ASM/GSM lists and not a lot of promoter holding is pledged

No Red Flags

Market regulator SEBI slapped a fine on Fortis Healthcare subsidiaries on account of fund diversion by erstwhile promoters

Board evaluating Sebi penalty of Rs 1 crore, says Fortis Healthcare

SEBI has imposed penalties totalling Rs 38.75 crore on 32 entities, including Fortis Healthcare Holdings.

Fortis Healthcare Case: SEBI Slaps Penalties Worth Rs 38.75 Crore On 32 Entities

Sebi has imposed penalties totalling Rs 38.75 crore on 32 entities, including Fortis Healthcare Holdings, in a case related to diversion of funds

Fortis Healthcare case: Sebi slaps Rs 38.7-cr penalties on 32 entities

Rainbow Children's Medicare saw a discount of 6-7% in the bourses. The scrip settled in both the exchanges between Rs 506-510/share, while the IPO price was Rs 542. 
The south-based multi-specialty hospital chain was totally subscribed 52 times and anchor investors included the likes of the Government of Singapore, SBI Mutual Fund, Axis Mutual Fund, Neuberger, and HDFC Life. 
The company trades at a relatively expensive valuation at 21 times its 12-month forward EV/EBIDTA multiple as compared to its peers like Shalby, Aster DM Healthcare, Fortis Healthcare, and Narayana Hrudayalaya. 
Guidance of 40% revenue growth in coming years given by management. 



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Rainbow Children's Medicare Lists At 6-7% Discount | ET Now | Business News

Observes Singh brothers siphoned off money through layers of transactions between January and May 2016

Fortis Healthcare funds diversion case: SEBI bans Shivinder and Malvinder Singh from markets

Confirmatory order by SEBI imposed a monetary penalty of Rs 5 crore each on Malvinder Singh and Shivinder Singh in Fortis Healthcare matter

SEBI bars Malvinder, Shivinder Singh from markets for three years

The case pertains to misappropriation of funds by the erstwhile promoters and their related entities from Fortis Healthcare

Fortis case: Sebi slaps Rs 24 crore penalty on Singh brothers, 7 others

In its order, Sebi noted that Singh brothers, RHC Holding, Malav Holdings and Shivi Holdings played a key role in the diversion of funds in the garb of investment through ICDs from Fortis Hospitals/ Fortis Healthcare, as the funds from the listed company moved through various conduit entities.

Fortis Healthcare case: Sebi slaps Rs 24 cr penalties on Singh brothers, 7 other entities

Sebi on Tuesday barred the Singh brothers from the securities market for a period of three years. They have also been restrained from being associated as a director or Key Managerial Personnel in a listed company or an intermediary registered with Sebi of any Market Infrastructure Institution.

Fortis Healthcare case: Sebi slaps Rs 24 crore penalties on Singh brothers, 7 other entities | The Financial Express

Passing a 109-page final order, the watchdog has slapped a fine of Rs 5 crore each on the two Singh brothers besides Rs 2.5 crore on RHC Holding Pvt Ltd.

Fortis Healthcare case: SEBI slaps Rs 24 cr penalties on Singh brothers, 7 others

While Apollo Hospital had said on Friday that it would begin vaccinating people with the dose from April 11, authorities running other big Covid Vaccination Centres (CVCs), like those at Fortis Healthcare and Max Healthcare, said they are expected to begin from tomorrow.

Slow start to administering of Covid precaution dose in Delhi; big CVCs expected to begin tomorrow | The Financial Express

Fortis Healthcare Limited is an integrated healthcare delivery service provider. The Company is engaged in establishing, administering hospitals, diagnostic centers and research centers.

Fortis Healthcare Ltd

Fortis Healthcare Ltd

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Board evaluating Sebi penalty of Rs 1 crore, says Fortis Healthcare

Fortis Healthcare Case: SEBI Slaps Penalties Worth Rs 38.75 Crore On 32 Entities

Fortis Healthcare case: Sebi slaps Rs 38.7-cr penalties on 32 entities

News Video

Rainbow Children's Medicare Lists At 6-7% Discount | ET Now | Business News

Fortis Healthcare funds diversion case: SEBI bans Shivinder and Malvinder Singh from markets

SEBI bars Malvinder, Shivinder Singh from markets for three years

Fortis case: Sebi slaps Rs 24 crore penalty on Singh brothers, 7 others

Fortis Healthcare case: Sebi slaps Rs 24 cr penalties on Singh brothers, 7 other entities

Fortis Healthcare case: Sebi slaps Rs 24 crore penalties on Singh brothers, 7 other entities | The Financial Express

Fortis Healthcare case: SEBI slaps Rs 24 cr penalties on Singh brothers, 7 others

Fortis Healthcare Ltd

Intrinsic ValueIntrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD ratesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend ReturnsA dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry PointHigh demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Board evaluating Sebi penalty of Rs 1 crore, says Fortis Healthcare

Fortis Healthcare Case: SEBI Slaps Penalties Worth Rs 38.75 Crore On 32 Entities

Fortis Healthcare case: Sebi slaps Rs 38.7-cr penalties on 32 entities

News Video

Rainbow Children's Medicare Lists At 6-7% Discount | ET Now | Business News

Fortis Healthcare funds diversion case: SEBI bans Shivinder and Malvinder Singh from markets

SEBI bars Malvinder, Shivinder Singh from markets for three years

Fortis case: Sebi slaps Rs 24 crore penalty on Singh brothers, 7 others

Fortis Healthcare case: Sebi slaps Rs 24 cr penalties on Singh brothers, 7 other entities

Fortis Healthcare case: Sebi slaps Rs 24 crore penalties on Singh brothers, 7 other entities | The Financial Express

Fortis Healthcare case: SEBI slaps Rs 24 cr penalties on Singh brothers, 7 others

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock