Buy Krishna Institute of Medical Sciences; target of Rs 725 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 725 in its research report dated May 14, 2025.

Broker Research

May 15, 2025 / 15:03 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 EBITDA growth of 29% YoY, adj for one offs; was in line with our estimates. Our FY26E/FY27E EBITDA broadly remain unchanged. The company is on track to commercialize greenfield expansions across Thane and Bengaluru markets by H1FY26. New leadership team hiring across Karnataka and Kerala provides comfort for faster ramp-up in these clusters. Given its lean cost structure and partnership with local doctors/ leadership outside Andhra Pradesh (AP) and Telangana, the management remains confident of achieving faster breakeven and +25% OPM across Maharashtra, Karnataka and Kerala clusters over the next 4-5 years. We expect 25% EBITDA CAGR over FY25-27E with healthy return ratios of ~20%.

Outlook

Maintain ‘Buy’ rating with TP of Rs725/share based on 27x FY27E EV/EBITDA. Delay in breakeven of new units will be a key risk to our call.

For all recommendations report, click here