Stock Market News: This hospital company trades in green after brokerage firm raises targets; check details here
The capacity of the newly opened hospitals (approximately 960 beds) in Panchkula, Rudrapur, and Agra is gradually increasing, giving confidence in achieving the company's guidance for FY2027.
Stock Market News
New Delhi: Shares of North India-based hospital chain Park Medi World, which made its stock market debut in December last year, are on investors' radar following positive reports from two brokerages. While Choice Institutional Equities reiterated its 'Buy' recommendation with a target price of Rs 350 per share, Emkay Global Financial Services retained its 'Buy' rating on the healthcare provider and raised its target price to Rs 375 per share, up from Rs 350 previously. The revised target implies a potential upside of over 32 per cent from recent trading levels.
Amid this, the stock opened in the red at Rs 282.35 against the previous close of Rs 284.95 on the BSE.
However, it witnessed buying at lower levels and gained to touch the intraday high of Rs 289.15.
The brokerage stated in its report that the company delivered a strong performance in the first quarter of fiscal year 2026-27 (1QFY27). Revenue grew 19 per cent year-on-year and EBITDA grew 20 per cent. The company is continuing its successful acquisition strategy to strengthen its presence in the Tricity region of Punjab. In this regard, it recently announced the acquisition of a hospital in Zirakpur, approximately 15-20 kilometres from its existing Mohali hospital. This will further strengthen the company's cluster-based expansion strategy.
The brokerage said the company remains focused on profitability. PAT Margin (PATM) grew 156 basis points year-on-year in the first quarter. Meanwhile, the capacity of the newly opened hospitals (approximately 960 beds) in Panchkula, Rudrapur, and Agra is gradually increasing, giving confidence in achieving the company's guidance for FY2027.
Furthermore, the benefits of improved case mix (520 basis points increase in CONGO Mix) and revised CGHS rates are expected to accrue in the remaining months of the fiscal year. This could significantly offset the impact of the investments and initial costs incurred in the new hospitals.
The brokerage expects the company's revenue to grow at a CAGR of 25% over FY26-FY29, given its clear plan to add approximately 1,800 new beds over the next 18 months. Considering the strong first quarter results and the Zirakpur acquisition, the brokerage has raised its EBITDA estimates by 4% each for FY28 and FY29.
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