Buy Global Health; target of Rs 1480: Motilal Oswal

Motilal Oswal's research report on Global Health

Global Health (Medanta) delivered better-than-expected revenue (9% beat) in 2QFY26. However, it delivered marginally lower-than-expected EBITDA/PAT (3%/2% miss) for the quarter. In-patient (IP) and out-patient (OP) volumes saw healthy mid-teen YoY growth for the fourth consecutive quarter. Realization per patient (ARPOB) increased due to the rising share of Oncology in case mix and better realization in other therapies.

Outlook

We trim our earnings estimates by 6%/2%/3% for FY26/FY27/FY28, factoring in additional costs from operations at Noida/Ranchi hospitals and a moderation in the profitability of matured hospitals. We value Medanta at 30x 12M forward EV/EBITDA to arrive at a TP of INR1,480.