Prabhudas Lilladher's research report on Aster DM Healthcare
ASTER DM Healthcare’s (ASTERDM) Q2 consolidated EBITDA grew 13% YoY to Rs2.53bn, above our estimate; aided by better recovery in performance at Kerala cluster. EBITDA has been increasing sharply over the last 3 years (30% CAGR over FY22-25). ASTERDM’s board has recently approved merger with Quality Care (QCIL), making it the third largest healthcare chain by revenue and bed capacity in India. We remain positive on ATSERDM given the rising visibility on post-merger synergies, occupancy improvement, margin expansion and upcoming bed additions. Our FY26-27E EBITDA estimate broadly remains unchanged. We estimate combined entity post Ind As EBITDA to grow at 24%+ CAGR over FY25-28E to Rs31bn+. The combined entity is trading at ~30x and 24x EV/EBITDA on FY27E and FY28E (adjusted for minority stake and rental) respectively.
Outlook
We maintain our ‘BUY’ rating with revised TP of Rs 775/share, valuing 30x EV/EBITDA for the combined entity on Sept FY27E.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
