Buy Aster DM Healthcare; target of Rs 270: ICICI Direct

ICICI Direct's research report on Aster DM Healthcare

Aster operates in segments like hospitals, clinics, retail pharmacies and provides healthcare services to patients across economic segments in several GCC states through various brands such as Aster, Medcare and Access. Its network consists of 13 hospitals, 109 clinics and 240 retail pharmacies in GCC states;14 hospitals, 11 clinics, 131 pharmacies and 114 labs in India; total bed capacity: GCC: 1160, India: 3905 • Revenue break-up FY22: hospitals: 56%, pharmacies: 21%, clinics: 23% with GCC & India contributing 77% & 23% of revenues, respectively.

Outlook

Maintain BUY for a unique blend of GCC healthcare network and a quest to expand in India with a calibrated capex approach. We value Aster DM at an SOTP of Rs 270.

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