NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Fortis Healthcare Ltd.'s hospital division margin of 22.4% in Q4 FY24 was the best under the new management. It has recently divested two underperforming hospitals in Chennai to curtail cost. Focus on adding brownfield beds (2,200 beds in next four years) is likely to improve scale without denting profitability.
Occupancy in FY24 rose 200 bps YoY to 67% and is likely to touch 70% on the existing beds in Q1 FY25E. Rebranding of diagnostics arm to Agilus has taken a toll on diagnostic revenue growth and margins. The branding cost of Rs 310 million may reoccur in FY25E, a 5-7% price increase in B2C business (53% of sales) in Feb-24 can help it safeguard profitability.
We resume coverage on the company with Add rating and target price of Rs 500, valuing hospitals/diagnostics at 21 times/23 times FY26E enterprise value/Ebitda.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
