Shares of Aster DM Healthcare Ltd. ended 16 percent higher on Tuesday, marking the biggest single-day gain on record since the company listed in 2018. The stock also reached an all-time high on Tuesday.

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Brokerage firm HSBC maintained a buy rating on the stock and also raised its price target on the stock to Rs 330 from Rs 265 earlier. Today's surge has also taken the stock beyond HSBC's price target as well.

HSBC said that the stock is now factoring in the company's expected restructuring.

The brokerage observed that the company’s management has said that a majority of the healthcare company's due diligence on the sale of its Gulf business has now been completed, with the likelihood of binding bids doing the rounds and expected soon. When this happens, the said sale will be considered by Aster DM Healthcare’s Board.

If and when the sale does take place, the company’s Gulf Central Committee (GCC) business will be seen as an investment on the balance sheet. The company’s shareholders can expect some form of shareholder returns, as Aster DM Healthcare now appears to reflect some possibility of restructuring which will unlock value, HSBC said.

HSBC expects the company’s strong revenue growth to continue going ahead, with margins of new hospitals to impact Aster DM Healthcare’s overall margins.

Shares of Aster DM Healthcare ended 16.2 percent higher at Rs 333.35.