Healthcare stock Unihealth Hospitals hits 5% upper circuit; here's why

Unihealth Hospitals share price was locked in the 5% upper circuit on Monday, 6 July, after the company announced that its Board of Directors had approved the acquisition of an additional 49.81% equity stake in Victoria Hospital Limited (VHL), Uganda, through a strategic share swap transaction, according to the company's exchange filing.

As per the filing, upon completion of the transaction and receipt of the necessary shareholder and regulatory approvals, Unihealth Hospitals' stake in Victoria Hospital will increase from 50% to 99.81%, making the Ugandan healthcare provider an almost wholly owned subsidiary.

The company said the acquisition marks a significant milestone in its international expansion strategy by consolidating ownership of one of its fastest-growing and most profitable overseas assets. It added that the transaction will allow substantially all future economic benefits generated by Victoria Hospital—including earnings, cash flows and long-term value creation—to accrue directly to Unihealth Hospitals' shareholders.

According to the exchange filing, the acquisition will be executed through the issuance of 12.5 lakh fully paid-up equity shares of Unihealth Hospitals on a preferential basis to the existing shareholders of Victoria Hospital—Bhasker Kotecha and Dr. Chirag Kotecha—in exchange for their aggregate holding of 2,55,544 equity shares, representing 49.81% of Victoria Hospital Limited.

Dr. Akshay Parmar, Managing Director of Unihealth Hospitals, said the acquisition marks a significant step in the company's evolution as an international healthcare platform. By increasing its stake in Victoria Hospital to 99.81%, Unihealth will consolidate ownership of one of its strongest growth assets, enabling substantially all future earnings, cash flows and value creation from the hospital to accrue directly to Unihealth shareholders.

Parmar highlighted Victoria Hospital's strong financial performance over the past three years, with revenue rising from ₹60.48 crore to ₹115.27 crore and profit after tax increasing to ₹43.53 crore. He also noted that the hospital benefits from a corporate tax holiday until June 2034 and maintains a debt-free balance sheet, which supports strong free cash flow generation and provides financial flexibility for future expansion across East Africa.

He added that the transaction is expected to be materially earnings-accretive, improve the quality of Unihealth's consolidated financial performance, and strengthen its long-term growth platform. Parmar also emphasised that the deal has been structured as a share swap, allowing the company to preserve capital while maintaining a strong balance sheet and following a disciplined approach to capital allocation and shareholder value creation.

Unihealth Hospitals share price today

Unihealth Hospitals share price today opened at an intraday high of ₹655.85 apiece on the NSE, the stock touched an intraday low of ₹650 per share.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, said the stock remains in a strong uptrend, consistently forming a higher-high, higher-low pattern, with every decline seeing fresh buying interest. He noted that the stock has once again hit the upper circuit, indicating sustained bullish momentum.

According to Bhosale, there are no signs of technical weakness at present, and the stock is likely to extend its upward move. However, given the sharp rally and the stock's deviation from its short-term moving averages, he advised investors to accumulate on dips rather than chase the price higher.

Bhosale identified the ₹600-580 zone as the immediate support range, while on the upside, he expects the stock to potentially advance towards ₹725, based on the reciprocal retracement pattern.

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