Prabhudas Lilladher Sees Target Price of Rs 1600 for Jupiter Life Line Hospitals

Jupiter Life Line Hospitals Sees Strong Growth in Q4

Prabhudas Lilladher's research report has highlighted the strong financial performance of Jupiter Life Line Hospitals (JLHL) in the fourth quarter of the fiscal year. The company's consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 12% year-over-year (YoY) to Rs 892 million, meeting the research firm's estimates.

If we adjust for the loss incurred by the Dombivli unit, JLHL's EBITDA growth was a robust 24% YoY. The company's operational efficiency has been a key factor in its success, particularly in the highly competitive markets of the Mumbai Metropolitan Region (MMR). Over the past three fiscal years, JLHL has reported a revenue/EBITDA compound annual growth rate (CAGR) of approximately 20%.

Given its expansion plans, increasing occupancy rates, and improving margins, JLHL's growth momentum is expected to sustain over the medium term. The research firm believes that strategic greenfield expansions in densely populated micro-markets of the western regions will drive sustainable growth for the company.

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Financial Projections

Based on these projections, Prabhudas Lilladher has maintained a 'BUY' rating for JLHL with a target price of Rs 1,600 per share, valuing the company at 23 times its enterprise value to EBITDA ratio based on its estimated EBITDA for FY28.