ASTER DM’s FY24E and FY25E EBIDTA stand increased by 4-5%. ASTER DM’s consolidated EBIDTA (Post IND AS) grew 33% YoY (down 23% QoQ) to Rs 3.9bn; 13% above our estimates. ASTERDM has a unique business model with presence in India and an established business with strong returns in GCC. We expect 17% EBIDTA CAGR over FY23-25E, as margin in its India business will gradually improve with brownfield expansion and new hospitals ramp-up in GCC. At current market price, the stock trades at an attractive valuation of 9x FY25E EV/EBIDTA (Pre IND AS), which is at 25-50% discount to Indian peers. Timely stake sale of GCC business will re-rate and lower gap with peers.
OutlookWe maintain our ‘Buy’ rating with TP of Rs. 345/share (earlier Rs 335/share) based on 18x FY25E EV/EBIDTA to India business and 8x EV/EBIDTA to GCC business.
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