Buy Artemis Medicare Services; target of Rs 325: Choice Equity Broking

Choice Equity Broking is bullish on Artemis Medicare Services has recommended buy rating on the stock with a target price of Rs 325 in its research report dated November 11, 2025.

Broker Research

November 12, 2025 / 12:55 IST

Buy

26 Aug, 2025 12:21

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Choice Equity Broking's report on Artemis Medicare Services

ARTMSL’s flagship Gurgaon hospital recorded the highest ARPOB (INR 83,900 in Q1FY26), driven by advanced clinical programs such as robotic surgery and CyberKnife. It currently operates over 700 beds, with plans to add ~120 beds (~17%) in the Gurgaon facility over three years, plus 300 beds in Raipur and ~600 in South Delhi, effectively more than doubling the total bed capacity by FY29 to ~1,700 beds. By FY28E, total operational beds are expected to reach ~1,000 with an occupancy of ~65% and ARPOB of INR 88,490. The ~600-bedded capacity would get support from the binding MoU with VIMHANS. With this MoU, ARTMSL marks its entry into mental health and expand neurocare, committing INR 60,000 Mn over the next 2–3 years. ARTMSL de-risks growth with INR 3,300 Mn IFC CCD funding, enabling rapid quaternary hospital expansion in NCR and Tier-2 cities, but this would dilute ~15% EPS.

Outlook

Thus, we initiate coverage on ARTMSL with a BUY recommendation and target price of INR 325, with an upside of 32.7%, by valuing the company on 18x EV/EBITDA on an Avg of FY27–28E, implying a PE multiple of 41.4x/27.9x at FY27E EPS/FY28E EPS. ARTMSL trades at PEG ratio of 1.07 as compared to the peer group, which trades in the range of at 2—4, implying strong upside for ARTMSL.

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