Nuvama Forecasts Up to 39% Growth Potential in Select Healthcare Company

Nuvama Initiates Coverage on Park Medi World with 'Buy' Rating

Park Medi World, a North India-focused hospital network, has been initiated with a 'buy' rating by Nuvama, a brokerage firm, citing strong growth prospects.

The brokerage firm believes that Park Medi World is well-positioned to benefit from India's structural hospital bed deficit, improving reimbursement dynamics, and faster healthcare growth in Tier II markets. The company is expected to experience a gradual rebalancing of payer mixes toward higher-yielding private and self-pay segments, as well as supportive CGHS rate revisions of 25-30% effective October 2025, which will strengthen earnings visibility.

Nuvama expects an inflection in the company's financial performance over FY25-FY28E, projecting revenue, EBITDA, and profit after tax to grow at a compound annual growth rate of 24%, 20%, and 28%, respectively. The growth will be supported by operating leverage and lower interest costs following debt repayment from IPO proceeds.

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The company is expected to turn net debt-free by FY26 and generate cumulative free cash flows of about Rs 167 crore over FY26E-FY28E, even after a planned capital expenditure of around Rs 620 crore. The strengthened balance sheet is also expected to provide room for further expansion.

The board of Park Medi World has approved the launch of a multi-speciality hospital in Panchkula on March 29, 2026. Shares of the company settled lower at Rs 203.6 per share on the NSE, down 0.54% in Wednesday's trade. The target price for the company is set at Rs 280, indicating an upside potential of up to 39% in the stock.