Hold Jupiter Life Line Hospitals: target of Rs 1610: ICICI Securities

ICICI Securities recommended hold rating on Jupiter Life Line Hospitals with a target price of Rs 1610 in its research report dated February 09, 2025.

Broker Research

February 13, 2025 / 22:24 IST

HOLD

26 Aug, 2025 12:21

Volume

Todays L/H

ICICI Securities's research report on Jupiter Life Line Hospitals

Jupiter Life Line Hospital’s (Jupiter) Q3FY25 result undershot our expectation. Revenue growth of 17.6% was driven by its Pune/ Indore hospitals while price hike fuelled modest growth at the Thane hospital. Dombivli (200–220 beds) hospital is likely to commence operations in Q1FY27. Jupiter recently bought land parcels in Pune and Mira-Bhayander (MMR) region to add two new hospitals (800 beds total) over CY28–29. By CY29, it would have six hospitals (presently three) and should achieve its goal of doubling bed capacity to ~2,500 beds. Capex of INR 9bn for two new hospitals shall be funded through internal accruals (cash balance of INR 2.5bn; likely to generate CFO of INR 2.5–3bn every year). In Jan’25, Jupiter added 78 beds to its existing hospital at Indore (capex per bed of INR 3mn) and may add 122 beds in the future as occupancy picks up.

Outlook

Reduce FY25E/FY26E EBITDA by ~1% to factor in lower margin. Downgrade to HOLD; raise TP to INR 1,610, valuing Jupiter at 28x FY26E EV/EBITDA.

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