Buy Midcap Healthcare Stock, Likely To Give Upto 24% Return, Says Prabhudas Lilladher

Prabhudas Lilladher has come up with a "Buy" recommendation for Krishna Institute of Medical Sciences Ltd., (KIMS), a midcap Healthcare sector stock. The brokerage has assigned a "Buy" on the stock with a target price of Rs 1,660/share. It sees 24% potential upside in the share price of the stock. KIMS is one of the largest corporate healthcare groups in Telangana & Andhra Pradesh in terms of patients treated and treatments offered. The company offers multidisciplinary healthcare services with primary, secondary, and tertiary care across 2-3 tier cities and an additional quaternary healthcare facility in tier-1 cities. It has a market capitalisation of Rs 10,826.16 crore.

KIMS's Stock Current Market Price, 52-Week Low/High, & Returns

The stock KIMS is currently trading at Rs 1,339.55/share, trading 0.77% down compared to the previous close of 1,350/share. Its 52 week low is Rs 1,113.25/share, and 52 week high is Rs 1,668.40/share, recently. The stock was listed on 28 June 2021.

Since the listing date, the stock has given 34.36% positive returns. However, it has fallen 2.62% in 1 week. In the past 1 month, it has fallen 4.3% and in 3 months, it has fallen 11.33%. In the past 1 year, it has fallen 0.2%.

Sunshine and Nagpur units scalability on track, Buy

Prabhudas Lilladher said, "We remain positive on Krishna Institute of Medical Sciences (KIMS)'s occupancy, profitability and scalability post our recent hospital visits across Nagpur and Sunshine units. KIMS will continue to focus on creating a strong cluster based investment approach and likely expand operations across Maharashtra and Karnataka region by adding more units. Overall, we expect Nagpur + Sunshine units EBIDTA contribution to go up by 2x (Rs2.2bn in FY25E vs Rs1bn in FY23) over FY23-25E."

It added, "We also expect ~17% consolidated EBIDTA CAGR and best in class return ratios with RoE/RoCE of ~20%/26% over the same period. Our FY24 and FY25E EBITDA marginally stands reduced by ~2%. Maintain 'Buy' rating with TP of Rs1,660/share (unchanged) based on 20x FY25E EV/EBIDTA. At CMP, stock is trading at valuations of 16x EV/EBIDTA (adj for IND AS and partner's stake) and 25x P/E on FY25E."

Disclaimer - The stock has been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.