Anand Rathi Initiates Coverage of Jupiter Hospitals with Buy Recommendation, Price Target of Rs 1,560
Jupiter Lifeline Hospitals Posts Stable Performance in Q4FY26
Jupiter Lifeline Hospitals delivered a stable performance in the fourth quarter of fiscal year 2026, in line with the estimates provided by Anand Rathi's research report. The hospital's revenue and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a year-over-year (y/y) increase of 15% and 12%, respectively. However, the Profit After Tax (PAT) grew by only 11% y/y, primarily due to higher interest costs and depreciation charges resulting from the commissioning of the new Dombivli unit.
Key Performance Indicators
The Average Revenue Per Occupied Bed (ARPOB) rose by 12% y/y to Rs67,700/day in fiscal year 2026, while the overall occupancy rate stood at 61.2% (excluding the Dombivli unit, the occupancy rate was 62.3%), compared to 65.3% in the previous fiscal year. This decline in occupancy rate can be attributed to the commissioning of the Dombivli unit and the addition of beds in Indore. The In-Patient Department (IPD) and Out-Patient Department (OPD) volumes grew by 2% and 10% y/y, respectively, indicating strong service utilization.
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Recent Developments and Future Plans
Jupiter Lifeline Hospitals has made significant progress in the past fiscal year, including the addition of 187 operational beds (123 census and 64 non-census beds) and the ongoing development of its second unit at Pune, which is expected to begin operations in fiscal year 2029. The Mira-Bhayandar project is awaiting regulatory clearances, with architectural drawings already complete. Additionally, the company has acquired a land parcel in the Bandra-Kurla Complex (BKC) for Rs3.5 billion on an 80-year lease, with 25% of the cost already paid and the remaining amount to be paid in fiscal year 2027e.
Outlook and Recommendation
Anand Rathi maintains a BUY rating on the stock with a revised Target Price (TP) of Rs1,560 (previously Rs1,700), valuing the company at 22 times its estimated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for fiscal year 2028.
Investor Takeaway
Investors should consider buying Jupiter Hospitals due to its stable performance and growth prospects.
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