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%.
Outlook
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.
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Krishna Institute of Medical Sciences - 18 -03 - 2023 - prabhu
