Anand Rathi's research report on Narayana Hrudayalaya
Lagging the consensus and in line with ARe, Narayana Hrudayalaya’s Q3 results were decent, revenue/EBITDA/PAT rising 14%/10%/3% y/y. Highlights: a) Cayman reported Rs2.8bn/Rs1.2bn revenue/EBITDA, up 14/2% y/y. b) India hospitals’ EBITDA was a healthy Rs2bn, up 14% y/y c) India occupancy was 58%. Management iterated its capex plan for the next 3-4 four years; further, it would focus on de-bottlenecking and a better bed mix. In the medium term, the company intends to add ~1,450 beds through greenfield expansions across Bengaluru, Kolkata and Raipur.
Outlook
We maintain our Buy recommendation on the stock with an unchanged TP of Rs1,550 based on 12x EV/EBITDA multiple to the Cayman business and 21x EV/EBITDA to the domestic business.
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