Aster DM share price target 2025 to 2030

Aster DM share price target 2025 to 2030: Welcome and thank you for joining this article on Aster DM Healthcare Ltd share price target 2025, 2030! In today’s review we’ll focus on its operations, how it makes profits and any areas for growth within this business, in order to gain an in-depth knowledge about its share price targets and gain more clarity into this company.

Aster DM Healthcare Ltd – Company Overview

Aster DM was founded in 1987 by Azad Moopen who was a doctor and later became an entrepreneur. 

The company was established in UAE and is now expanding its network in India, Oman, Qatar, Bahrain and Kuwait. In India, the company has its hospitals in cities like Kochi, Calicut, Kotakkaal, Kannur, Kolhapur, etc. 

Aster DM Healthcare Limited is present as one of the premier integrated private healthcare service providers operating within GCC countries and India, known for their strong emphasis on clinical excellence. 

They boast as one of the few global organisations with strong presence across primary, secondary, tertiary, and quaternary healthcare provision.

The first medical centre of Aster DM was opened in Sharjah, OAE in 2011. Initially the company wanted to focus on opening more and more pharmacies. In Fact the star cricketer Sh. Sachin Tendulkar was the brand ambassador of Aster Pharmacy and CSR activities in 2015 and inaugurated the 150th pharmacy of the company in Abu Dhabi.

Financial ratios of Aster DM

Let’s now examine some financial figures before discussing Aster DM share price target 2025 and 2030. These numbers should give us an indication of how well their company is doing.

First and foremost, Aster DM boasts a market cap of Rs 22198 crores which makes them a large cap company. Right now the share price stands at Rs 444 trading close to its 52 week high of Rs 496.The stock P/E ratio is 60.9 which suggests overvaluation when compared to sector P/E of 44.

Aster DM’s book value per share stands at Rs 87. Its return on its capital (ROCE) has been 9.21% and equity returns (11% ROE) may not be very appealing for investors; however, their returns in recent times are impressive: 92.27% in year one and 46.1% over 3 years. This shows Aster DM’s efficiency as it consistently delivered solid returns over its lifetime.

The company’s Debt of Rs 5,995 Crore is enormous and its debt to equity ratio sits just above 1 at 1.37. Although, ideally this should have been lower.

Sales growth over the last twelve months was 18.5% while profit growth had decreased to an annual negative profit growth rate of -24%.

As previously discussed, Aster DM is an established large cap company which can easily pay its debts off, offer attractive returns to investors and be an excellent long-term investment option. Now we will learn what are Aster DM’s future share price targets!

Aster DM share price target table

Aster DM Share Price Target 2024

Aster DM sales are continuously increasing every year. The sales in 2019 were Rs 7963 crores which have increased at a good rate to Rs 13505 crores in trailing twelve months. These sales numbers are huge and impressive. 

The company is constantly working on increasing its hospitals and bed capacity. They are also offering patients cheaper rates to beat its competition and increase bed occupancy. The integrated pharmacies help the company improve its revenue and serve the patients better.

The positive trend in the company’s sales suggests that Aster DM share price target in 2024 will be between ₹ 554.28 and ₹ 566.24 . 

Also Read: Evexia Lifecare share price target

Aster DM Share Price Target 2025

In the past quarter, the hospital clinic sector saw an EBITDA margin of 20.8%, with 20.2% for the nine-month span. It’s projected that margins will increase by 3-4% over the next two to three years. 

Both labs and pharmacies are forecasted to reach profitability and aid in expansion beyond 20% during the same timeframe. There’s a strategic plan to grow hospitals in smaller cities and anticipate a steady 8-9% rise in average revenue per occupied bed.

If the strategy pays off , Aster DM share price will reach a target price of ₹ 720.19 by the end of 2025.

Aster DM Share Price Target 2026

As we mentioned, Aster DM is really focused on India because it is the fastest growing economy in the world right now. To expand well in India, the company is separating its GCC and Indian business and making them separate entities. 

The company has already conducted voting for the segregation and a significant number of shareholders have voted in favour of the separation of GCC business from Indian operations.

The shareholders showed strong support with an impressive 99.96% of votes in favour. This separation of businesses will help the Indian entity to focus on Indian operations only. 

We project a share price target of ₹ 915.28 for Aster DM in 2026.

Aster DM Share Price Target 2027

During the covid time, the business of the hospital chains increased and the bed occupancy was very high. However, Aster DM has experienced even higher growth after the covid. The company’s Non-covid revenue has grown at 41% CAGR over FY 21-23. 

At this rate of growth we project the Aster DM share price target of ₹ 1084.60 in 2027.

Aster DM Share Price Target 2028

The incredible growth of Aster DM has resulted in promoters increasing their share from 37.88% to 41.88% and the FIIs have also taken up huge shares in the company with 41%. Usually FIIs dont invest so much in a company and that is why Aster DM has become a very lucrative option for investors.

Aster DM share price target for 2028 will be between ₹ 1245.88 and ₹ 1259.58. 

Aster DM Share Price Target 2029

In India, there is a shortage of hospitals and hospital beds due to the large population. Aster DM has future plans to invest more capital to increase bed capacity to 6600 by 2027. The way the company is planning this is by adding 1700 additional beds over 3 years till 2027. Apart from this the company has established 224 new labs, patient experience centres and 223 pharmacies across Karnataka, Kerala and Telangana. These initiatives have increased the company’s revenue by 36% during the nine months of FY24.

As Aster DM continues to add more resources and hospitals for patients, its share price should reach ₹ 1505.10 in 2029.

Aster DM Share Price Target 2030

The GCC operations of Aster DM generate 25% of ROCE and the Indian operations operate much less i.e. 6%. After the segregation of Indian and GCC business the ROCE of Indian business will definitely increase. The expansion in bed capacity and occupancy will also help Aster DM to increase its revenue. 

In financial year 23, the firm spent Rs 280 crore on capital expenditures and aims to invest Rs 1000 crore over the next five years, adding 7 hospitals, 5 clinics, 257 drugstores, and 205 laboratories and patient experience centres.

The prospects look bright and the company’s share price will definitely rise at a faster pace and that is why we project a share price target of ₹ 1695.22 for Aster DM in 2030.

Also Read: Ajooni Biotech share price target

Profit and loss of Aster DM healthcare Ltd.

Consolidated Figures in Rs. Crores

To make an informed decision to invest in a company or not, it’s important to analyse the profits and losses of the company. Let’s have a look at the Aster DM profit and loss statement in detail. We will find out the company’s profitability, risk profile and growth potential. 

In 2019 the company made a sale of Rs 7963 crore which has almost doubled in trailing twelve months to 13505 crores. This is 12% sales growth year on year. 

The expenses have also grown at a faster pace and that is probably the reason why the company’s net profits have not increased much. In March 2019 the net profit was Rs 367 crores against a sales of 7963 and now in TTM it is Rs 396 crores against a sales of Rs 13505 crores. 

The reason why profits have not grown much is because of the rising expenses. The company is focusing on expansion and the manufacturing costs have increased and that is why it is not able to increase the profits as much. 

Aster DM is also not paying any dividend to its investors right now. The company is probably reinvesting its profits.

Overall, Aster DM is a strong company with good profits. The company is making profits for itself and is also paying good returns to its investors. The company needs to reduce the expenses slightly to improve profit margins. 

Conclusion

In this post we explored Aster DM healthcare ltd share price targets between 2025 to 2030 based on company performance over recent years. Aster DM is consistently making healthy profits and yielding significant returns to investors; its sales continue to expand while expenses increase significantly. Yet net profits haven’t grown proportionately with sales; therefore it needs to cut expenses to boost profitability; should that happen Aster DM will experience better profits and long-term investors will become . This post should not be seen as buy/sell advice but rather as informational purposes only and research your own investments before making decisions based on this post!

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