Stock To Buy For Long-Term: Nuvama Calls Park Medi World A Buy For Rs 280 Target; 39% Upside Seen

Park Medi World Ltd, a healthcare stock, has gained market attention after brokerage company Nuvama Wealth Management has assigned a buy call on the stock for a target price of Rs 280, which implies a 39.3% gain from the current market price of Rs 201 as of 12th March.

In order to reach around 5,260 beds by FY28E, PARKHOSP has a clearly visible and phased bed growth pipeline. This implies about 2,260 additions and a 21% CAGR during FY25-28E. By the end of December 2025, its capacity had increased from 2,550 beds in FY23 to 3,250 beds. Over the next five years, the management hopes to add about 10,000 beds using both organic and inorganic methods.

As per Nuvama, with a better demand-supply gap, speedier occupancy ramp-up, and more capital efficiency than crowded metro areas, Tier II markets are where Park Medi World is proactively recalibrating its development. Tier I capacity is anticipated to rise slightly from ~1,600 beds in FY25 to ~1,800 beds by FY28E, remaining mostly steady in the mix, while being crucial for greater realisations, case-mix improvement, and brand strength. Tier II beds, on the other hand, are expected to rise significantly from ~1,100 in FY25 to ~3,160 by FY28E, accounting for ~60% of total capacity and driving the majority of incremental growth.

Higher acuity super-specialty and quaternary care, which provide superior realisations and operating leverage, are replacing general medicine in PARKHOSP's clinical mix. While cardiology, neurology, and oncology are on the rise, internal medicine's contribution has decreased to about 30% in H1FY26 from about 41% in FY23. In order to increase income while maintaining volume stability, PARKHOSP has been deliberately rearranging its payer mix. According to the brokerage, revenue share from government programs and PSUs decreased to around 83% in H1FY26 from about 92% in FY23, while revenue share from self-pay patients, private insurance, and TPAs increased to 9%/8% from 4%/3%.

"The Indian healthcare industry is entering a favourable phase with recently added capacities expected to meaningfully contribute to earnings, even as the expansion momentum across the sector stays strong. Against this backdrop, PARKHOSP is well positioned to deliver healthy growth while trading at a reasonable valuation. Over the past two years, most listed hospital companies have seen a significant re-rating, particularly in the affordable healthcare segment. However, PARKHOSP trades at a discount of ~32% to its peer average on an FY27E EV/EBITDA, offering meaningful scope for a valuation catch-up. We expect the valuation gap to narrow driven by faster bed expansions, improving occupancy in core hospitals, a favourable shift in the specialty mix, and a strengthening Balance Sheet. We value the company at 18x FY28E EV/EBITDA, in line with its peer average, to arrive at a TP of INR280," commented the research analysts of Nuvama Wealth Management.

"North India-focused hospital platform Park Medi World (PARKHOSP) is all set to gain from India's structural bed deficit, rising reimbursement dynamics, and faster healthcare growth in Tier II markets. It operates 14 multi-super-specialty hospitals, with ~3,250 beds (including ~870 ICU beds), across Haryana, Punjab, Delhi, and Rajasthan. With a visible expansion pipeline, bed capacity is seen rising to ~5,260 by FY28E led by cluster-based additions in Haryana, Punjab, and NCR, along with its entry into the underpenetrated Uttar Pradesh. This expansion, coupled with a steady shift toward higher-acuity specialties such as cardiology, neurology, and oncology, is resulting in higher ARPOB and operating efficiency. A gradual rebalancing of payer mixes toward higher-yielding private and self-pay segments, besides supportive CGHS rate revisions (a hike of 25-30% effective October 2025), strengthens earnings visibility. We initiate coverage with a 'BUY' rating and TP of INR280," the brokerage further added.

By late 2025, the organization had developed into a sophisticated network of 14 multi-super specialty hospitals with 3,250 beds that are recognized by the NABH. With an ongoing pipeline planned to raise its overall capacity to around 5,260 beds by March 2028, it is the second-largest chain of private hospitals in North India.

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