Prabhudas Lilladher's research report on Krishna Institute of Medical Sciences
We remain positive on Krishna Institute of Medical Sciences (KIMS)’s occupancy, profitability and scalability post our recent hospital visits across Nagpur and Sunshine units. KIMS will continue to focus on creating a strong cluster based investment approach and likely expand operations across Maharashtra and Karnataka region by adding more units. Overall, we expect Nagpur + Sunshine units EBIDTA contribution to go up by 2x (Rs2.2bn in FY25E vs Rs1bn in FY23) over FY23-25E. We also expect ~17% consolidated EBIDTA CAGR and best in class return ratios with RoE/RoCE of ~20%/26% over the same period. Our FY24 and FY25E EBITDA marginally stands reduced by ~2%.
Maintain ‘Buy’ rating with TP of Rs1,660/share (unchanged) based on 20x FY25E EV/EBIDTA. At CMP, stock is trading at valuations of 16x EV/EBIDTA (adj for IND AS and partner’s stake) and 25x P/E on FY25E.
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.
Krishna Institute of Medical Sciences - 18 -03 - 2023 - prabhu