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Buy Fortis Healthcare; target of Rs 330: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Fortis Healthcare has recommended buy rating on the stock with a target price of Rs 330 in its research report dated May 24, 2023.

May 26, 2023 / 04:35 PM IST


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Prabhudas Lilladher's research report on Fortis Healthcare

Our FY24/25EEBIDTA estimates stands reduced by ~7% as we factor in lower margins across segments. Fortis Healthcare (FORH) Q4FY23 adjusted EBIDTA for one offs (Rs115mn) was 9% below our estimate, led by lower profitability in diagnostic segment. Though margins across segments in Q4 were below our estimates, we remain positive on margin improvement in hospital segment aided by 1) improving case and payor mix 2) cost rationalization initiatives and 3) traction in international patient’s footfall. We expect 17% Pre IND AS EBIDTA CAGR over FY23-25E. At CMP, stock is trading at 16.5x EV/EBIDTA on FY25E, adjusted for SRL stake.


Maintain‘Buy’ rating with revised TP of Rs.330 (earlier Rs. 360) valuing at 18x EV/EBIDTA on FY25E. Resolution of legal issues and monetization of non-profitable assets would be a key additional trigger for re-rating.

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Fortis Healthcare - 25 -05 - 2023 - prabhu

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first published: May 26, 2023 04:35 pm