SHFA

⚡ Flash Summary

Shifa International Hospitals Ltd. reported strong financial results for the year ended June 30, 2025. Revenue increased by 18.7% to Rs. 27.97 billion, while net profit surged by 71.0% to Rs. 2.33 billion. The company declared a final cash dividend of Rs. 5 per share, a 50% payout. Shifa is strategically expanding with a new national hospital in Faisalabad and a planned acquisition of Shifa Medical Center Islamabad, demonstrating a commitment to growth and quality healthcare across Pakistan. The firm also stands firm on its dedication to ethical labor practices and environmentally conscious strategies.

📌 Key Takeaways

• 🚀 Revenue jumped 18.7% to Rs. 27.97 billion.
• 💰 Net profit soared 71.0% to Rs. 2.33 billion.
• 📈 Earnings per share surged 71.0% to Rs. 36.84.
• dividend announced per share (50% payout).
• 🏥 Strategic expansion continues with the new Shifa National Hospital Faisalabad.
• 🤝 Acquisition of Shifa Medical Center Islamabad planned to strengthen footprint.
• 🌱 Strong commitment to digitization of healthcare services to improve efficiency.
• ⚖️ Debt-to-equity ratio remains healthy at 11:89.
• Exceeds contribution to the national exchequer, 4,571 million
• 🤝 Partnered up with national clusters and international forums to improve medical quality
• 🌱 Commitment to environmental stewardship through renewable energy and waste reduction programs.
• 💸 A high percentage 90.90% of the directors completed the Directors Training Program (DTP)

🎯 Investment Thesis

Shifa International Hospitals presents a compelling BUY opportunity based on its strong financial performance, strategic expansion initiatives, commitment to digitalization, and healthy balance sheet. The company’s commitment to ethical labor practices and environmental stewardship further enhance its long-term sustainability. Target a P/E of 15, leading to a price target = 15*36.84 = 552.6 with a medium term time frame.