Core Healthcare to settle dues via sale of assets - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Core Healthcare to settle dues via sale of assets

Jan 13, 2000

Core Healthcare is set to finance the settlement of its dues with 20 creditors through a sale of large chunks of its assets. The Rs 3.2 billion company owes its creditors almost Rs 10 billion. The fact however remains that the company is left with no option but to sell parts of mainstream business which includes its new IV fluids, syringes and indictable units. Ironically, these are the very assets, which increased the company’s debt burden substantially.

The moot point is that the company will be severely hampered while competing with units such as Wockhardt which have started to aggressively market their IV fluid range. And the fact remains that once a hospital uses a particular brand of IV fluid it does not change its supplier since the hospital staff gets used to a particular type of supporting equipment.

So while reduction of the debt burden will pare the interest burden, the topline growth itself will be adversely affected one because of the lack of facilities which will be sold off and two because of the loss of market share which the company will find extremely difficult to recover.

Equitymaster requests your view! Post a comment on "Core Healthcare to settle dues via sale of assets". Click here!

  

More Views on News

Points to Keep in Mind Before Subscribing to Krishna Institute of Medical Sciences' IPO (Views On News)

Jun 15, 2021

All you need to know about the IPO of Krishna Institute of Medical Sciences.

Why Did Shares of Divi's Lab Rally Today? (Views On News)

Jun 10, 2021

The stock jumped 3.6% in intraday trade to hit its 52-week high.

Laurus Labs Hits New Life High. Up 500%+ in One Year (Views On News)

Jun 8, 2021

Laurus Labs trades higher for the eight straight day, soars 73% in 3 months.

Jubilant Pharmova Drops 6% on Weak March Quarter Numbers (Views On News)

Jun 8, 2021

Here's a rundown on the latest quarterly results of Jubilant Pharmova.

Lupin Gains 16% in a Month. Here's Why it Could Rally More (Views On News)

Jun 4, 2021

Recent developments in digital healthcare and revised targets by brokerages send Lupin shares flying.

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

TRACK CORE HEALTHCARE

  • Track your investment in CORE HEALTHCARE with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MARKET STATS