Medanta - On Robust Runway For Sustainable Growth: Motilal Oswal

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..Motilal Oswal Report.Over the past four years, Medanta Operator Global Health Ltd. has delivered a stupendous performance (three times earnings), witnessing a 35% Ebitda compound annual growth rate. Moreover, it turned net cash in FY23 from a net debt of Rs 3 billion in FY19. Since listing in Q3 FY23, the stock has more than doubled today. Interestingly, over FY23-26E, the outlook remains strong, on the back of a healthy pipeline of beds being added to the existing facilities (552 beds) and the upcoming ones in Noida, Indore, and South Delhi (1,000 beds on a combined basis). Additionally, average revenue per occupied bed is expected to witness a 6% CAGR due to the improving case mix/payor mix. Moreover, we expect ARPOB of mature/developing facilities to reach Rs 70,000/Rs 67,000 at 5%/6% CAGR, respectively, over FY23-26. We expect 28% earnings CAGR over FY23-26, factoring-faster scale-up of existing hospitals,additional business from new hospitals and better operating leverage. Accordingly, we value Medanta at 26 times 12-month forward enterprise value/Ebitda to arrive at our target price of Rs 1,170. We reiterate our 'Buy' rating on the stock..Click on the attachment to read the full report:.IIFL Finance - Acing The Asset-Light Model: Motilal Oswal Initiates Coverage With A 'Buy' Rating.DISCLAIMERThis 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.

Medanta - On Robust Runway For Sustainable Growth: Motilal Oswal

Medanta continues to pursue initiatives not only to increase bed capacity, but also augment clinical resources

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Medanta - On Robust Runway For Sustainable Growth: Motilal Oswal

Medanta continues to pursue initiatives not only to increase bed capacity, but also augment clinical resources

Choose a plan

Follow Us

DOWNLOAD THE APP