Accumulate Narayana Hrudayalaya; target of Rs 911: Geojit

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Geojit recommended accumulate rating on Narayana Hrudayalaya with a target price of Rs 911 in its research report dated March 09, 2023.

Geojit’s research report on Narayana Hrudayalaya

Narayana Health Ltd (NH) is a chain of multi-specialty hospitals operating in India and the Cayman Islands. NH reported 9MFY23 revenue of Rs. 3,303cr (+20% YoY) from Rs.2,760cr in 9MFY22 driven by higher momentum in both Indian and Cayman businesses. The company registered an EBITDA of Rs.690 cr from Rs. 478cr in 9MFY22 with an EBITDA margin of 20.9% (up 360 bps YoY) on account of improvement in payor mix and cost efficiency. Resultantly, PAT grew 59% YoY to Rs.434 cr. The unit at Cayman Island reported revenues at $80mn (18% YoY) for the nine month period due to lifting of restrictions. The recently acquired orthopaedic hospital, Sparsh, began operations in October 2022 and generated 30% EBITDA for the quarter. We expect the growth to continue on the back of increased patient footfall, rising Average Revenue Per Operating Bed (ARPOB) and the aggressive capex plan for both organic and inorganic expansion.


Outlook

Hence we reiterate our “Accumulate” rating based on 17x FY25E EV/ EBITDA with a target price of Rs.911.

For all recommendations report, click here

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Narayana Hrudayalaya – 09 -03 – 2023 – geo


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