Buy Jupiter Life Line Hospitals; target of Rs 1475: Prabhudas Lilladher

buy

Prabhudas Lilladher's research report on Jupiter Life Line Hospitals

Jupiter Life Line Hospitals (JLHL) Q1 consolidated EBITDA grew by 21% YoY (3% QoQ) to Rs. 639mn; in line with our estimates aided by higher ARPOB and steady occupancy. JLHL’s operational efficiency has been strong in competitive markets of MMR. The company reported Revenue/EBITDA CAGR of 24%/35% over FY21-24. Given expansion plans, scale up in occupancy and improving margins, business is expected to aid growth momentum over the medium term in our view. We believe strategic greenfield expansions in densely populated micro-markets of western regions augur well to drive sustainable growth.

Outlook

Overall we see 25%/25% EBITDA/PAT CAGR over FY24- 26E with healthy return ratios of ~20%. Maintain ‘Buy’ rating with a TP of Rs 1,475/share valuing at 25x EV/EBITDA based on FY26E EBITDA.

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Jupiter Life Line Hospitals - 190824 - prabhu