Volume growth, improved efficiency aid earnings growth

Company
11 Mar 2024
5 Min read 
  • Global Health (Medanta) delivered strong performance in 3QFY24 with robust YoY growth in sales, EBITDA, and PAT.
  •  Revenue growth was driven by high volumes in both in-patient and out-patient services.
  •  Earnings estimates have been raised to reflect strong demand and improved performance of mature hospitals.
  •  Medanta is well-positioned for consistent earnings growth with bed additions, new hospital projects, and addition of medical talent.
  •  The company is on track with its Noida project but facing hiccups with the Indore project.
  •  Shareholding pattern shows significant promoter and institutional ownership.
  •  Margins have improved due to increased volume and operating leverage.
  •  Medanta plans to increase bed capacity in Patna and is focusing on expanding its presence in underpenetrated markets.
  •  The company has entered into a JV with DLF to develop a super specialty hospital in Delhi.
  •  Maintain a Buy rating with a target price of INR1,460.
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