Name: Shifa International Hospital Ltd (SHFA)
Market Capitalization: PKR 15.99 billion
Price: PKR 258/share (July 7, 2020)
52 Week Range: 172 - 350
P/E: 11.98
Div. Yield: 1%
Company Profile
Shifa International Hospital is a 550 bed tertiary care hospital in Islamabad offering comprehensive diagnostic facilities, outpatient clinics and inpatient services in 35+ medical & surgical specialties. It covers the national footprint and outreach with a network of lab collection points, pharmacies & medical centers including a 40+ bed hospital in Faisalabad
Strengths
International Finance Corporation (IFC) equity investment of USD $12 million at approximately PKR 230/share
15% revenue growth and 6% earnings growth (Q3 2019 YTD vs. Q3 2018 YTD)
Expansion of operations leading to significant increase in future earnings (Shifa Islamabad expansion: Shifa Faisalabad: Shifa Neurosciences)
Monopolistic market share in Islamabad private health space (best in class)
Health Care is a non-discretionary expense that is largely resistant to an economic recession
As of Q3 2019, share price was declining yet revenue and profit were trending upwards. It should be noted this was a period of overall market collapse.
Risks
A relatively high debt load could be problematic in a high rate interest environment.
Introduction of a new entrant in Islamabad's health space