Global Health - Witnessing Recovery In Developing Hospitals: Motilal Oswal

The brokerage values the company at 33 times 12 months forward enterprise value/Ebitda to arrive at a target price of Rs 1,380 and reiterates Buy on the stock.

Medanta hospital building. (Source: Company website)

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Motilal Oswal Report

Global Health Ltd. (Medanta) recorded a robust 59% compound annual growth rate earnings over FY20-FY24, led by superior execution. We expect a healthy 18% earnings CAGR over FY24-FY26.

Given that Medanta is implementing efforts to further scale up Lucknow/Patna, expand its bed capacity, and add clinical talent, we witness moderate earnings in FY25. However, we expect robust earnings growth from FY26 onwards.

We value Medanta at 33 times 12 months forward enterprise value/Ebitda to arrive at a target price of Rs 1,380. We reiterate Buy on the stock.

Click on the attachment to read the full report:

Motilal Oswal Medanta Update.pdf
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Also Read: Persistent Systems - Worries On Margins To Recede: Motilal Oswal

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