Yatharth Hospital clarifies on market rumours & I-T matters; stock down 37% from record high

Yatharth Hospital & Trauma Care Services Ltd issued a clarification to bourses about certain rumours in the market and income tax (I-T) issues. "This is in reference to address recent market rumours concerning alleged non-disclosures and uncertainties related to income tax matters at Yatharth Hospitals. Regarding concerns about the recent update on the provisional attachment of equity shares and properties by the Income Tax Department, we would like to inform that there is no new development on the said matter. The ongoing issues were duly informed to the stock exchanges following receipt of the notice from the authorities and before the opening of the Qualified Institutional Placement (QIP)," it stated in a recent BSE filing.

Specifically, the company said it made a couple of disclosures on October 22 last year regarding a search operation by the I-T department and on December 17, 2024, over a tax issue.

"Further to our intimation during the QIP, an amount of Rs 6.23 crore was subsequently allowed to be used by the authorities from the lien amount disclosed earlier. We wish to emphasize that there is no pending information or announcement regarding the income tax issue as of this date. We are actively cooperating with the authorities to expedite the resolution of this matter and do not anticipate any material financial or operational liabilities arising from these proceedings," Yatharth further stated.

On the stock-specific front, the stock slipped 4.18 per cent in Friday's trade to hit a day low of Rs 438. At this price, it has tumbled 36.78 per cent from its all-time high level of Rs 692.85, seen on November 4, 2024.

The counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 16.41. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-equity (P/E) ratio of 42.12 against a price-to-book (P/B) value of 4.37. Earnings per share (EPS) stood at 10.59 with a return on equity (RoE) of 10.36.

It saw high trading volume on BSE today as around 92,000 shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 32,000 shares. Turnover on the counter came at Rs 4.12 crore, commanding a market capitalisation (m-cap) of Rs 4,272.35 crore.

As per BSE data available for the December 2024 quarter, promoters held a 61.44 per cent stake in the company.