Aster DM Healthcare Q1 Results Review - Strong Quarter; Margin Improvement Continues: Prabhudas Lilladher

Prabhudas Lilladher Report

Aster DM Healthcare Ltd. Q1 consolidated Ebitda grew strongly by 37% YoY to Rs 1.7 billion. Aster DM Healthcare India’s Ebitda increased sharply over the last three years (29% compound annual growth rate over FY22-24).

We estimate 30% Ebitda compound annual growth rate over FY24-26E aided by scale-up in margins, healthy average revenue per occupied bed and bed additions. Our FY25E/26E estimates remain unchanged.

At current market price, the stock is trading at 21 times enterprise value /Ebitda on FY26E, respectively adjusted for minority stake and rental.

We maintain ‘Buy’ rating with target price of Rs 400, valuing at 23 times enterprise value /Ebitda on FY26E Ebitda. Utilization of proceeds and timely expansion will be key monitorables in the near term.

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