Buy Narayana Hrudayalaya; target of Rs 2100: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Narayana Hrudayalaya has recommended buy rating on the stock with a target price of Rs 2100 in its research report dated November 19, 2025.

Broker Research

November 19, 2025 / 11:45 IST

Buy

26 Aug, 2025 12:21

Volume

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Prabhudas Lilladher's research report on Narayana Hrudayalaya

Narayana Hrudayalaya (NARH) reported strong EBITDA of Rs4.1bn (up 32% YoY) in Q2FY26, 8% above our estimates driven by robust performance across India and Cayman operations along with reduced losses in the insurance business. The Cayman business reported profitability of Rs1.56bn (up 58% YoY), adjusted for CIHL losses, up 61% YoY. India business reported healthy EBITDA adjusted for NHIC losses, up ~21% YoY. The management reiterated its aggressive capex plan and commitment towards growing throughput over the next 3-4 years through debottlenecking, refurbishment and better bed mix. In the medium term, NARH intends to add +1,500 beds expansion over next 3 years through greenfield and brownfield across Bengaluru, Kolkata and Raipur.

Outlook

Our FY27E and FY28E EBITDA stands increased by 15-17% as we factored in UK acquisition while PAT largely remain unchanged. We maintain ‘BUY’ rating with a TP of Rs2,100/share, based on 26x EV/EBITDA for India business and 15x EV/EBITDA for international operations based on Sept 2027E.

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