Narayana Hrudayalaya Shares Plunge In Diwali Muhurat Trade After Q2 Profit Decline

Narayana Hrudayalaya Ltd. share price plunged 4% during the Diwali Muhurat trading session on Friday after second quarter net profit fell. The earnings came after market hours a day prior.

The bottomline declined 12% to Rs 199 crore in the July-September quarter, compared to Rs 227 in the same period last year. Analysts' consensus estimates compiled by Bloomberg projected Rs 219 crore profit.

Revenue from operations rose 7% from Rs 1,305 crore to Rs 1,400 crore, meeting the estimate of Rs 1,423 crore.

On the operating side, Ebitda was flat at Rs 308 crore and missed estimate of Rs 324 crore. Margin was 22% versus 23.6% in the year ago period. The estimate was 22.7%.

"Despite the slowdown in international patient inflows due to geopolitical tensions in the neighborhood, we have been able to show an overall growth in revenues during the quarter through our enhanced focus on domestic business," said Emmanuel Rupert, managing director and Group CEO.

"The performance improvement is seen across our flagship units, other hospitals, and steady improvements in the performance of our newer hospitals," he added.

Narayana Hrudayalaya share price dropped as much as 4% to Rs 1,220 apiece. The benchmark NSE Nifty 50 was up 0.4%.

The stock has risen 25% in the last 12 months and 4% on a year-to-date basis. The total traded volume so far in the day stood at 2.4 times its 30-day average. The relative strength index was at 30.

Seven out of the 12 analysts tracking Narayana Hrudayalaya have a 'buy' rating on the stock, two recommend a 'hold' and three suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price target of Rs 1,407 implies a potential upside of 12%.

The Diwali Muhurat Trading session was scheduled from 6:00 p.m. to 7:00 p.m. on November 1, 2024.