Narayana Hrudayalaya Receives Bullish Recommendation from Prabhudas Lilladher with a Price Target of Rs 2250
Narayana Hrudayalaya Reports Strong EBITDA Growth, Maintains Aggressive Capex Plan
Narayana Hrudayalaya (NARH) has posted a strong EBITDA of INR5.1 billion for the quarter, representing a 43% year-over-year (YoY) growth. This performance is attributed to the robust performance of both India and Cayman operations, as well as the consolidation of the UK subsidiary. The company's EBITDA has exceeded its projected levels by 7%.
The management has reaffirmed its plans to invest in capital expenditures (capex) and to grow throughput over the next three to four years through debottlenecking, refurbishment, and improved bed mix. In the medium term, Narayana Hrudayalaya intends to add approximately 1,535 beds over the next three years through greenfield and brownfield expansion across Bengaluru, Kolkata, and Raipur.
Revised EBITDA Projections
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| Year | FY27E EBITDA | FY28E EBITDA |
|---|---|---|
| Current | Increase by 2% | Increase by 3% |
Maintaining its 'BUY' rating, Prabhudas Lilladher has revised its target price for Narayana Hrudayalaya to INR2,250 per share, based on an estimated earnings multiple of 23 times (EV/EBITDA) for the India business and 15 times (EV/EBITDA) for international operations, both calculated for the fiscal year 2028 (FY28E).
Investor Takeaway
Investors should consider buying Narayana Hrudayalaya with a price target of Rs 2250.
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