Brokerage Firm Prabhudas Lilladher Sets Target Price of Rs 1450 for Global Health Stock

Global Health (MEDANTA) Surpasses Earnings Estimates with 13% YoY Growth

Global Health, also known as MEDANTA, has reported a 6% beat to its estimated EBITDA for the fourth quarter of fiscal year 2026. This growth is largely attributed to higher growth across its units in Lucknow and Patna. Additionally, the company has seen a reduction in losses quarter-over-quarter in its Noida unit, with its ramp-up progress on track. MEDANTA's reported EBITDA growth stands at 7% compound annual growth rate (CAGR) over the fiscal years 2024-2026, primarily due to issues at its Lucknow unit and start-up losses related to the Noida unit in fiscal year 2026.

The company has a total bed capacity of approximately 3,663 beds and plans to add an additional 3,190 beds over the next 3-4 years. With the issues at its Lucknow unit largely resolved and the ramp-up in Noida expected to be visible from the second quarter of fiscal year 2027, MEDANTA's EBITDA is anticipated to clock a compound annual growth rate of approximately 24% over fiscal years 2026-2028.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Outlook and Recommendation

The research firm has increased its estimated EBITDA for fiscal years 2027 and 2028 by 6%. In light of this, the firm maintains a 'BUY' rating on MEDANTA with a revised target price of Rs1,450 per share. This valuation is based on an enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio of 27x on fiscal year 2028 estimates.