Shalby hits 52-week high on deal with Divine Super Specialty Hospital

Shalby shares surged nearly 8 percent to hit a 52-week high in early trade on June 28, a day after the company signed an agreement with Divine Super Specialty Hospital, in Ranchi, to set up a franchise-owned-Shalby-managed (FOSM) hospital in the region. Divine Super Specialty Hospital has a capacity of 60 beds.

As per the terms of the agreement, Shalby will provide its expertise, operational guidance, specialist doctor services, supply chain and learning and development support to facilitate the establishment and smooth functioning of the hospital. Divine Super Specialty Hospital (Franchisee) will be responsible for the day?to?day operations of the hospital.

“Ranchi has witnessed rapid growth in recent years, creating a demand for high?quality healthcare services. Our partnership with Divine Super Specialty Hospital, will leverage our extensive experience to meet this demand effectively,” Shalby stated in an exchange filing.

“This collaboration aligns with our long?term vision of expanding our presence and making quality healthcare accessible to a wider population,” the company added.

At 9.24am, shares of Shalby were trading 6.5  percent higher at Rs 178.40 on the National Stock Exchange. The stock also hit a 52-week high of Rs 180.35 intraday.

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With this deal, Shalby continued with the trend of capacity expansion across the hospital sector as it aims to rein in the strong demand trajectory for healthcare services. Many other hospitals are also on an aggressive capital expenditure to increase their offerings, dive into tier II and tier III cities and expand their capacities.

Moreover, the positive sentiment around hospital stocks on the back of their strong growth prospects, robust capex and resilient demand also aided gains for the stock.

Likewise, shares of the multi-specialty hospital chain has risen over 44 percent in the past three months, outperforming most other listed hospitals.

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