Fortis Rally Backed By IHH Stake Buy; SEBI Analyst Sees Healthy Says ‘Multibagger’ Setup Emerging

SEBI approval for IHH Healthcare to buy an additional 26% stake in Fortis sparks a rally above ₹1,000.

Shares of Fortis Healthcare rose over 1% on Wednesday on the heels of SEBI’s approval for IHH Healthcare’s plan to buy an additional 26% stake in the company. Fortis shares have gained nearly 9% in the last five sessions. 

Fortis-linked IHH Healthcare, which already holds a 31.1% stake in the healthcare group, can proceed with its ₹19,308 crore open offer, whose closure has been in limbo since 2018 due to protracted litigation by the Singh brothers and Daiichi Sankyo. 

The original offer was made at ₹170 per share, while Fortis now trades near ₹1,000, a more than fourfold increase since then.

Finkhoz said the approval signals a significant turning point for the company, offering regulatory clarity and setting the stage for better governance, a stronger balance sheet, and fresh investment from IHH.

Fundamental View

According to Finkhoz, Fortis has quietly turned itself around in the past few quarters. Sales increased 45% from ₹1,488 crore in Jun-2022 to ₹2,167 crore in Jun-2025 and operating profit increased from ₹251 crore to ₹491 crore during the same period. 

The operating profit margin increased from 17% to 23% driven by cost control and pricing power.

Net profit more than doubled from ₹134 crore to ₹267 crore. Visibility on profits is strengthened by the EPS, which has improved every quarter. Finkhoz said the business is benefitting from higher occupancy rates, premium treatments, and expansion in diagnostics. “In short — fundamentals are getting healthier, just like their patients,” he said.

Technical View

Finkhoz said the weekly chart shows a decisive breakout above ₹1,000 after weeks of consolidation. “The stock was stuck between ₹900–₹1,000, but last week’s 7% jump with volume signals institutional buying,” he said.

He added that relative strength index (RSI) above 70 shows good momentum, even though mildly overbought levels suggest the possibility of some minor corrections. 50-day exponential moving average (EMA) at ₹544 and 200-day EMA at ₹370 show a strong uptrend, he added.

“Support zone: ₹900–₹950,” Finkhoz said. “If it holds above ₹1,000, next target zone opens around ₹1,150–₹1,200.”

He added, “So technically, this isn’t a random jump — it’s a breakout with strength backed by rising volumes and long-term structure.”

What Should Traders Do Now?

Finkhoz said, “This breakout looks more ‘multibagger’ than ‘false’ — backed by clean fundamentals, global backing (IHH), and strong chart structure.”

Finkhoz noted that if Fortis were to close below ₹900, the breakout could lose strength, but as long as it stays above ₹1,000, the bullish momentum is likely to remain intact.

He concluded, “Simple verdict: Fortis just got its ‘clearance certificate’ — from both SEBI and the charts.”

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘bullish’ amid ‘normal’ message volume.

Fortis Healthcare’s stock has risen nearly 50% so far in 2025.

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