Buy Jupiter Life Line Hospitals; target of Rs 1800: Prabhudas Lilladher

Prabhudas Lilladher's research report on Jupiter Life Line Hospitals

JLHL’s Q2 consolidated EBITDA adjusted for one offs grew by 9% YoY to Rs850mn. Its operational efficiency has been strong in the competitive markets of MMR. The company reported revenue/EBITDA CAGR of 20%/25% over FY22-25. Given its expansion plans, scale-up in occupancy and improving margins, growth momentum is expected to sustain over the medium term. We believe strategic greenfield expansions in densely populated micro-markets of western regions will drive sustainable growth. Our FY27E and FY28E EBITDA stands reduced by 3-5% as we factor in lower margins. Overall, we see 19%/14% CAGR in EBITDA/PAT over FY25-28E with healthy return ratios of ~16%.

Outlook

Maintain ‘BUY’ rating with a TP of Rs1,800/share, valuing at 26x EV/EBITDA based on Sept 2027E EBITDA as we roll forward.