Prabhudas Lilladher Recommends This Healthcare Stock, Sees Potential Upside of 23%

Prabhudhas Lilladher sees a potential growth of 23% from the stock price of Krishna Institute of Medical Sciences, a leading multi-disciplinary integrated private healthcare services providers in southern India. Given below are the details.

Krishna Institute of Medical Sciences, a leading private player operates a chain of multispecialty hospitals with focus on tertiary and quaternary healthcare. It has evolved as the largest corporate healthcare group in Andhra Pradesh and Telangana with network of six hospitals. The Company offers a comprehensive bouquet of healthcare services across specialties and super specialties through network of six hospitals under the KIMS Hospitals brand. It has a market cap of Rs 10,843.36 crore.

According to Prabhudas Lilladher, Krishna Institute of Medical Sciences 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 and Sunshine units EBIDTA contribution to go up by 2x (Rs2.2 billion in FY25E vs Rs1 billon in FY23) over FY23-25E.

"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", as per the brokerage.

The current stock price of Krishna Institute of Medical Sciences is Rs 1350.60 per share, which is up by 0.12% on intraday basis. In last one year the stock price has marginally jumped up by 0.58% and since its IPO launch in 2021, it has grown by 42.66%. The 52-week high is at Rs 1,669.10 per share and 52-week low is at Rs 1,115.80 per share.

Disclaimer:

The stock has been picked from the brokerage report of Prabhudas Lilladher, Greynium Information Technologies and 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.