Witnessing recovery in developing hospitals

Company
09 Sep 2024
5 Min read 
  • Stock information: MEDANTA has a market cap of INR 298.3b and 52-week range of INR 1514 / 675.
  •  Financial snapshot: Sales expected to grow at 11% CAGR over FY24-FY26.
  •  Stock performance: Witnessing recovery in developing hospitals, capex progressing well.
  •  Building capacity: MEDANTA aims to grow its capacity to ~3,373 beds by FY25 and 5,173 beds over the longer term.
  •  Matured hospitals: Witnessed a 15% sales growth YoY in FY24 with a margin expansion of ~300bp.
  •  Valuation and view: MEDANTA is valued at 33x 12M forward EV/EBITDA to arrive at a TP of INR1,380, maintaining BUY.
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