Hold Krishna Institute of Medical Sciences: target of Rs 630: ICICI Securities

HOLD

ICICI Securities's research report on Krishna Institute of Medical Sciences

Krishna Institute of Medical Sciences’ (KIMS) Q3FY25 revenue was in-line while EBITDA and PAT were dragged by seasonality and its new Nashik hospitals. KIMS’ hospitals in Telangana/Andhra Pradesh grew a robust 26.1%/27.8% YoY. In Q3FY25, it commenced operations at its 325-bed hospital in Nashik (EBITDA loss of INR 50mn in Q3FY25), which is likely to break even by Q3FY26. Timeline of addition of Thane and two Bangalore hospitals have shifted by 1–2 quarters.

Outlook

Each of these facilities may drag EBITDA by 100–150mn p.a. when added. Rise in surgical revenue, curb in ALOS and better occupancy at Sunshine, Nagpur and Nashik hospitals may help KIMS safeguard its margins. Maintain HOLD on expensive valuation, raise TP to INR 630, based on 29x FY26E adj. EV/EBITDA.

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