Aster is likely to now enter a phase where it would have to sweat assets, improve cash flows and add leverage.
Goldman Sachs initiates a buy on Aster DM Healthcare Ltd with a target price of Rs213. Aster is likely to now enter a phase where it would have to sweat assets, improve cash flows and add leverage.
Solid demand across Gulf Cooperation Council (GCC) and India is likely to drive utilisations, said the Goldman note. It expects utilisations to improve to 65 percent over the next 3 years.
Goldman Sachs expects 17 percent revenue CAGR over the next 3 years. It expects 500 bps margin expansion over FY17-20. The valuations look attractive, and the stock is trading at a discount to Indian/GCC peers.
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