1. At a Glance
Fortis Malar Hospitals Ltd is a hospital company without a hospital, a healthcare stock without healthcare, and possibly India’s most philosophical listed entity right now. As of 6 February, the stock trades at ₹55.2, with a market cap of ~₹104 Cr, despite having zero operating revenue post its February 2024 slump sale.
Over the last 3 months, the stock is down ~16%, and over 6 months, it’s down nearly 20%, which is what happens when reality slowly catches up with corporate shells. Yet, the company reported PAT of ₹4.54 Cr (TTM)—not from treating patients, but from interest income and write-backs.
Return ratios? ROE 0.56%, ROCE 0.83%—numbers so low they should come with a microscope. Debt is zero, current ratio is a chunky 12.2, and EPS stands at ₹2.42, which looks impressive until you realise it’s financial yoga, not operating muscle.
So the real question:
👉 Are you buying a healthcare business, or a restructuring lottery ticket?
2. Introduction – From ICU to Corporate Limbo
Once upon a time, Fortis Malar was a proper Chennai-based multi-speciality hospital, treating patients, billing insurers, and fighting the usual healthcare margin wars. Then came February 1, 2024, when the entire operating business was sold to MGM Healthcare Pvt. Ltd. for ₹45.7 Cr via a slump sale.
Since then?
🩺 No patients
🏥 No hospital operations
💊 No healthcare revenue
What remains is a listed entity with:
- Cash
- Bank deposits
- Residual liabilities
- A confused shareholder base
- And a management team “evaluating restructuring options”
In FY25, the company earned ~₹0.05 Cr in sales, which is basically accounting dust, while expenses existed just enough to keep the lights on. Yet the company reported profits because of other income, mainly interest on
deposits and provisions written back.
This is not a turnaround story.
This is not a healthcare growth play.
This is a corporate carcass being examined for organ donation.
So why is it still listed? Why is it trading at 3× book value? And why does it even have a P/E ratio?
Let’s dissect.
3. Business Model – WTF Do They Even Do?
Short answer: Nothing.
Long answer: They manage money and paperwork while figuring out what to do with their corporate existence.
Post slump sale:
- No hospital
- No doctors
- No nurses
- No beds
- No diagnostics
- No IPD or OPD revenue
Current “business activities” include:
- Parking cash in bank deposits
- Earning interest income
- Writing back old liabilities
- Handling legal, tax, and compliance matters
- Exploring restructuring options (undefined, undated, uncommitted)
Fortis Malar is now less “hospital” and more corporate waiting room.
If this were a startup pitch, the slide would read:
“Pre-revenue. Pre-product. Pre-idea. Post-exit.”
4. Financials Overview – Numbers That Exist, Business That Doesn’t
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 0.00 | 17.58 | 0.03 | -100% | -100% |
| EBITDA (₹ Cr) | -0.33 | -1.09 | -0.38 | NA | NA |
| PAT (₹ Cr) | 0.02 | -4.00 | 0.01 | NA | 100% |
| EPS (₹) | 0.01 | -2.13 | 0.01 | NA | 0% |
Yes, ₹0 revenue.
Yes, PAT exists.
No, this is not a typo.
EPS Annualisation (Q3
