Artemis Medicare share price target 2025, 2030

Artemis Medicare share price target 2025, 2030: Hello friends, welcome to another post where we will discuss another stock that is in the health sector and has given 158% returns in the last one year and 93% returns in the last 3 years. We will talk about Artemis Medicare services ltd. 

Friends, treating and serving patients is an act of virtue. However, while serving the patients and relieving them of their illness some hospitals start looking at the business aspect as well and to build more hospitals they form a company and issue shares to raise more money.

Overview of Artemis Medicare Services Ltd

Artemis Medicare was incorporated in 2007 by the promoters of Apollo Tyres Group. The company operates a 550 bed multi-speciality hospital in Gurgaon which is spread across 9 acres. It is the first NABH and JCI accredited hospital in Gurgaon. The hospital is equipped with advanced technology and experienced doctors.

The company operates a chain of 13 other small hospitals in various cities of India under the joint venture with Philips Medical Systems in Gurugram, New Delhi, Jaipur, Patna, Jammu, Ludhiana etc. These hospitals are called Daffodils, Artemis Lite, or Cardiac Centres.

13% of the company’s revenue comes from Orthopaedics & Joint Replacement, 18% from Oncology, Cardiovascular contributing 10%, Neurology Neurosciences & some others together contributing 17% and Others incl. Medicine,Gynae,Nephrology etc contribute 42%.

Artemis Medicare share price target table

In this article, we will analyse Artemis Medicare revenue, net profit, ratios, and other financials to conclude what will be the Artemis Medicare share price target 2025, 2030.

If you do not want to go through our research and stock analysis, then you can refer to the table below for Artemis Medicare share price targets.

Financial Ratios of Artemis Medicare Services Ltd.

Now let’s inspect the company’s business in detail and assess some of its financial ratios to find out how investable Artemis Medicare Services Ltd is. 

This is a relatively small cap company with a market cap of only Rs 2245 crores and current stock price of Rs 165. The highest the stock price has hit is Rs 194 and the lowest was Rs 61.4.

Talking about the Stock P/E, it stands at 49.2 against the industry P/E of 41.4 which means the stock is overvalued right now and may not be a good buy at this price.

AMSL has made an ROCE of 11.4% and an ROE of 10.1% in the last one year which shows that the company is making decent returns off its capital and equity. These are average numbers and there is definitely some scope of improvement.

The Book Value per share is Rs 31.3 which again shows that the stock is overvalued.

The company has a current debt of Rs 306 crores but the Debt-to-Equity ratio of only 0.72 suggests that the company is capable of paying off the debt without much problem.

The sales growth of 21% and profit growth rate of 7.06% is also good and shows that the company is making sales or since this company is basically a hospital, it is getting new patient visits with high bed occupancy. 

Overall, the financial ratios of the company are good except the P/E ratio which is high. We suggest you do your own research before buying the stock at this price.

Profit and loss of Artemis Medicare

In this segment we will analyse the profit and loss statement of Artemis Medicare based on last 5 years numbers. 

Standalone Figures in Rs. Crores

When we look at the sales of the company, there have been some ups and downs but the sales numbers have pretty much remained consistent at around Rs 540 crores mark. However, there was a significant growth of 31% in sales. The sales reported for March 2022 was Rs 545 crores and in March 2023 it jumped to 714 crores. The sales numbers are also impressive for the trailing twelve months at Rs 815 crores.

The expenses have also risen according to the sales. In March 2019 the company incurred a total expenses of Rs 480 crores against a revenue of Rs 547 crores and in March 2023 the expenses were Rs 620 crores against a revenue of 714 crores.  These expenses mainly include manufacturing cost of 66% and employee cost around 16%.

As a result the operating profits have increased from Rs 66 crores to Rs 94 crores but the operating profit margins have remained pretty much the same at around 12-13% throughout this period.

After deducting other income of Rs 7 crores, interest of Rs 19 crores, depreciation of 29 crores and tax of 25% the net profit of the company for March 2023 comes out to be Rs 40 crores. This net profit is a decent amount for such a small company. However, the company needs to reduce the expenses to increase its margins.

Also Read: Evexia Lifecare share price target

Balance sheet of Artemis Medicare

For analysis of the Balance sheet we will consider the period from March 2020 to September 2023. 

Standalone Figures in Rs. Crores

During this period the company has not issued new shares or split the shares because  equity capital has stayed fixed at Rs 13 crores. 

The reserves have also grown at a slow pace from Rs 301 crores in March 2020 to Rs 411 crores in September 2023.

The borrowings (Debt) have almost tripled from Rs 106 crores to Rs 306 crores including Rs 198 crores in long term, Rs 26 crores in short term and Rs 44 crores in lease liabilities. 

Other liabilities including trade payables, advance from customers make a total of Rs 205 crores. 

Artemis Medicare’s fixed assets have almost doubled from Rs 387 crores to Rs 659 crores in September 2023. If we add CWIP of Rs 54 crores, investments of Rs 15 crores and other assets of 208 crores, the total assets of the company are Rs 937 crores by September 2023.

All in all the company does not have any major debt to pay. The reserves and fixed assets have increased over the years at a steady pace. This makes for a strong balance sheet. 

Artemis Medicare share price target 2024

Artemis Medicare has recently built a second tower adjacent to the Gurgaon Hospital building. This second tower is getting occupied really fast, and the company is ready to reap the financial benefits very soon. This will improve the revenue and profit of Artemis Medicare.

According to our analysis share price target for Artemis Medicare in 2024 would be Rs 202.12.

Artemis Medicare share price target 2025

Artemis Medicare’s third tower construction is in progress and going according to plan. It will become operational in early FY25, helping the company increase sales and improve operational efficiency.

If things go according to the plan, Artemis Medicare will easily achieve a share price target of Rs 285.25 by the end of 2025.

Artemis Medicare share price target 2030

In the long run, Artemis Medicare is focussing on adding more light hospitals to strengthen its presence across North India. The company is also expecting to add 3-5 cardiac care centers every year across India. In addition, the company is working to increase its footprint internationally.

Artemis Medicare’s future plans are promising. If the company manages to achieve what it has promised, the share price target of Artemis Medicare will reach at least Rs 569.48 by the end of 2030.

Also Read: Biogen Pharmachem share price target

Shareholding pattern of Artemis Medicare Services Ltd

Numbers in percentages

When we talk about the shareholding of Artemis Medicare services ltd, everything looks positive here as well. 

Promoters

The promoters have kept their share at around 69% since 2020. This goes to show that the promoters trust the company and see a bright future ahead.

FIIs

Foreign Institutional Investors (FIIs) had no share in the company till December 2023 when they bought just 0.11% shares. FIIs usually do extensive research before investing in a company and their presence is a positive indicator for general investors.

DIIs

Domestic Institutional Investors (DIIs) had a stake of 1.22% in the company in March 2020 and since then they have increased or decreased their share slightly. Currently they hold 1.96% of the company.

Government

The government also holds 7.18% share in the company which is very encouraging for the company. Government doesn’t invest in average companies.

Public

Public shareholding has also increased very slightly from 21.59% in 2020 to 22.72% in December 2023. 

In summary, promoters not selling or pledging their shares, FIIs, DIIs and Govt. presence gives a very positive outlook of the company. 

Conclusion

As per our analysis Artemis Medicare Services Ltd is a great healthcare sector company to invest in. The company has strong financial performance and a bright future ahead. Ofcourse, the company has to earn from ill people to make profits. However, since it’s a nobel job to heal patients and the company targets high society people anyways. 

The company has given 158% returns in the last 1 year and has also shown steady growth in sales. The company is profitable, has a strong balance sheet and a manageable debt. The stock is overvalued and we recommend you to do your own research before investing in the company.

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