Buy Krishna Institute of Medical Sciences target of Rs 675 Prabhudas Lilladher

Prabhudas Lilladher is bullish on Krishna Institute of Medical Sciences has recommended buy rating on the stock with a target price of Rs 675 in its research report dated November 12, 2024.

Broker Research

November 12, 2024 / 11:05 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Krishna Institute of Medical Sciences

Krishna Institute of Medical Sciences (KIMS) reported strong EBITDA growth of 27% YoY, 7% beat to our estimate aided by higher profitability across clusters. Our FY26E/FY27E EBITDA estimates stands increased by 3-4%. New leadership team hiring across Karnataka and Kerala cluster provides comfort for faster ramp up in these clusters. Further new clinical talent hiring and addition of subspecialties across Telangana units will lead to ramp-up in revenues and profitability. Given its lean cost structure and partnership with local doctors/ leadership outside Andhra Pradesh (AP) & Telangana region, the management remains confident of achieving faster breakeven and +25% OPM across these new clusters over the next 4-5 years.

Outlook

We expect 22% EBITDA CAGR over FY24- 27E with healthy return ratios of ~20%. Maintain ‘Buy’ rating with revised TP of Rs675/share based on 26x FY27E EV/EBITDA. Delay in breakeven of new units will be a key risk to our call.

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