Anand Rathi's research report on Narayana Hrudayalaya
Below our estimate (mainly losses at Cayman Integrated Healthcare), Narayana Hrudayalaya’s Q1 EBITDA was Rs3.4bn, up 11% y/y, 7% q/q. Highlights: a) Cayman reported Rs1.4bn profit (up 17% y/y), adjusted for losses, up 25% y/y; b) the India business reported healthy EBITDA adjusted for the NHIC losses, up 13% y/y. Management iterated its capex plan for 3-4 years; further, it would focus on de-bottlenecking and a better bed mix. In the medium term, it intends to add ~1,935 beds through greenfield expansions across Bengaluru, Kolkata and Raipur.
Outlook
We introduce FY28e and roll forward our valuations to H1 FY28. We maintain our Buy on the stock with a higher TP of Rs2,000 (Rs1,550 earlier) on 20x H1 FY28e EBITDA (Cayman) and 25x H1 FY28e EBITDA (domestic).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
