Buy Global Health; target of Rs 1630: Motilal Oswal

BUY

Motilal Oswal's research report on Global Health

Global Health (Medanta) delivered better-than-expected 1QFY26. Improved performance in mature as well as developing hospitals led to a 7%/6%/11% beat on our sales/EBITDA/PAT estimates for the quarter. Medanta achieved its highest-ever quarterly revenue, supported by increased patient volumes and improved realization. Notably, 1QFY26 is the first quarter to witness an increase in ARPOB in Patna, led by improved efficiency. This resulted in a dip in Average Length of Stay (ALOS). However, the performance was partly offset by an increase in the share of institutional patients at Lucknow, affecting ARPOB for developing hospitals.

Outlook

We broadly retain our estimates for FY26/FY27. We value Medanta at 30x 12M forward EV/EBITDA to arrive at our TP of INR1,630.

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