Ashish Chugh's Hidden Gems

Among the many hidden gems I liked this one. Not becuase its fundamentals are good or on the basis of technical analysis, but simply because I like the health sector and I think that in the near future this sector will have a dream run

Devaki Hospitals:
CMP: 37.35

In the last couple of days, this stock has run up from Rs 18 to Rs 32. So investors should wait for a correction before getting into this stock. This stock again was mired in a controversy. It was a management tussle around three years back. The earlier management was accused of financial irregularities, which led to company not paying up the banker. So they defaulted all the loans to the bankers. They could not even pay salaries of the employees and also defaulted on statutory liabilities, like PF and electricity bill.

In the last one year, this company saw a change in management. The new management was taken over by a set of doctors, who were working there. The old management sold out their shares to the new management.
The new management infused more capital into the company, and cleared all loan to the bankers. They have restructured the loans, and cleared the high cost loans, which were at 14-15%. They have recently substituted it with a loan from HSBC, at about 9%. They have paid off all statutory liabilities. Now the hospital seems to be coming back on track.
The new set of doctors who have taken over this hospital, enjoy a good reputation in their own fields. So in future, they have plans for this hospital. They are doing renal surgeries. The hospital is a specialist in kidney transplant, and it is also planning to add up a cardiac department, which could be a big money spinner. Mind you, this stock has run up from Rs 16-Rs 17 to Rs 32 in a matter of one month. So one can wait for a decline to Rs 25-Rs 26 before investing