Prabhudas Lilladher's research report on Krishna Institute of Medical Sciences
Krishna Institute of Medical Sciences (KIMS) Q4 operating performance was in-line with our estimate; reported EBIDTA growth of 44% YoY (8% QoQ) to Rs1.6bn. Company’s robust cost control, low capital intensive set-up and value accretive acquisitions have ensured good profitability in the past (with EBIDTA growth of 40% CAGR over FY18-22). Also recent acquisitions of Sunshine, Nashik and Nagpur are value accretive which will continue to aid growth momentum, in our view. We expect 17% EBITDA CAGR over FY23-25E with best in class return ratios of 20%/24% RoE/ RoCE. Our FY24E and FY25E EBITDA estimates broadly remain unchanged.
Outlook
We maintain our ‘Buy’ rating with TP of Rs1,660/share based on 20x EV/EBITDA. At CMP, stock is trading at 18x EV/EBITDA (adj for partner’s stake) and 29x P/E on FY25E.
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Krishna Institute of Medical Sciences - 22 -05 - 2023 - prabhu
