Why big investors, brokerages like Fortis Healthcare

Higher proportion of mature hospitals and listing of diagnostics business bode well

The Fortis Healthcare stock was up 8 per cent after buy ratings from brokerages and on news that Rakesh Jhunjhunwala picked up a stake in the company on Tuesday. For a company whose stock has taken a beating - down almost a third per cent in about three months, due to issues at the promoter group that have little direct impact for Fortis, these latest developments are a welcome. So, why this positive stance on Fortis?

Goldman Sachs, which has a buy rating on the company, believes the mature hospitals and better occupancies will lead to margin expansion to the tune