India’s healthcare system, which includes over 70,000 institutions, is quickly expanding, fueled by a population of more than 1.4 billion. With a market value of $372 billion in 2022, it is expected to grow at a CAGR of 22.87%, driven by growing income levels, improved health awareness, and government efforts.
With a market capitalization of Rs 30,310.94 crore, the shares of Global Health Ltd were trading at Rs 1,130.00 per share, increasing around 3 percent as compared to the previous closing price of Rs 1,101.85 apiece.
Looking forward to the company’s financial performance, revenue grew 10 percent from Rs 780 crore in Q1FY24 to Rs 861 crore in Q1FY25, and during the same period of time, net profit grew 4 percent from Rs 102 crore to Rs 106 crore.
Motilal Oswal, one of the well-known brokerages in India, gave a ‘Buy’ call on the healthcare stock with a target price of Rs 1,380 apiece indicating a potential upside of 22 percent from Tuesday’s price of Rs 1,126.4 per share.
Here’s the explanation for the potential upward target:
● As per the brokerage, MEDANTA, with a current capacity of 3,440 beds, is expanding in north and central India, particularly in Lucknow, Patna, and Noida, aiming to add 500 more beds by FY25 while hiring clinical talent and investing in technology.
● The hospital group has a long-term goal of surpassing 5,000 beds and is pursuing an ambitious capex plan, including expansion into new regions like Mumbai-Oshiwara.
● MEDANTA recorded a robust 59% CAGR earnings over FY20-FY24, led by superior execution. The brokerage expects a healthy 18% earnings CAGR over FY24-FY26
● Medanta, with 2,823 beds as of 1QFY25, aims to expand to 3,373 beds by FY25 and 5,173 beds long-term, adding beds in Gurugram, Lucknow, Patna, and Noida. It is also focused on hiring clinical talent, particularly in cardiology, GI, and neurology for Noida.
● The Noida facility, benefiting from strong brand equity and good connectivity, is expected to reach 30-35% occupancy in its first year, with the potential to achieve an ARPOB of Rs 55k-60k within two years.
Global Health Limited (Medanta) is a multi-specialty tertiary care provider in northern and eastern India. Medanta provides modern, comprehensive healthcare in Delhi, Gurugram,
Indore, Ranchi, Patna, and Lucknow via a network of five hospitals, six medicines, diagnostic labs, homecare, and telemedicine services.
Written by:- Abhishek Singh
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