Choice Institutional Equities's report on Yatharth Hospitals
YATHARTH’s focussed expansion across underserved areas of Delhi-NCR, combined with its strong super-specialty portfolio, is propelling higher ARPOB and sustaining healthy margins, reinforcing its position as a leading advanced tertiary-care provider. View and Valuation: We project Revenue/EBITDA/PAT to expand at a CAGR of 35.5%/35.7%/43.6% over FY25–FY28E.
Outlook
Upgrading our valuation multiple to 20x EV/EBITDA (from 17x) on the average of FY27–FY28E, we revise our target price to INR 1,050 (earlier INR 850) and maintain our BUY rating. We expect growth to be driven by higher ARPOB (8–10% growth every year), improved occupancy levels (aiming for 70% across existing facilities), strategic acquisitions and a sustained revenue growth trajectory of +30%.
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