Gagan,
Would recommend an investment in Fortis as a long term play, not a short term play.
They have a solid management with some very good honest and pedigree backing. Their senior management has a clear vision of where they want to take the company and they have been working well to execute that vision. They do not talk themselves up much, focussing more on execution. As much is evident from the very selective writing one has seen on the people that run FHL itself, rather what you get is news from time to time about how the company is growing.
Make no mistake, this is a capital intensive business with long gestation periods. But Fortis have successfully managed much of that gestation already and what you have now is an experienced management team that knows how to execute projects and get them to profitability. They have come to market to get needed working capital to pay off their Escorts acquisition (which is most likely legal in light of the high valuations institutions bought at pre-IPO, they would have done thorough legal due diligence to assess litigation risk).
It makes sense because they can then have a much healthier balance sheet with a lower leverage ratio, what remains then is for management to keep driving the profitability of the propreties Fortis owns that are maturing, and to constructively engage in expansion.
Fortis has the makings of a powerhouse, but it needs the market's faith at this point as a reliable long term horse. Not a short term sprinter. I think the management team has the ability to successfully manage any hurdles that currently face and deliver solid returns over the long term.
Think of it as the Indian version of HCA, which was just taken private last year for USD33 billion. Indian healthcare has the potential to produce companies like HCA, but it requires the faith of investors. I beleive Fortis can and will reward investors well in the long term.
Hope this helps.
