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Emkay lifts Park Medi World target price after June quarter results

The brokerage raised its target to ₹375 from ₹350 after revenue grew 19% YoY to ₹4.8 billion and profit after tax rose 31% YoY to ₹825 million.

Reported · Written up by our desk · Asia

Emkay Global Financial Services reiterated a Buy rating on Park Medi World and increased its share price target to ₹375 from ₹350 following stronger-than-expected June quarter performance, LiveMint Markets reports.

The brokerage said Park Medi World’s revenue rose 19% year-on-year to ₹4.8 billion, supported by 12% YoY growth in average revenue per occupied bed after CGHS rate revisions. It also pointed to a 16% YoY increase in inpatient volumes and a 17% YoY rise in outpatient volumes.

Emkay highlighted that EBITDA increased 20% YoY to ₹1.2 billion, coming in 11% above its estimate, while the EBITDA margin improved 22 basis points YoY to 26.5%. It added that profit after tax grew 31% YoY to ₹825 million, helped by strong operations and lower interest costs from reduced debt.

While the company expanded bed capacity by 32% YoY and occupancy fell to 55.6% from 67.8% a year earlier, Emkay noted management’s roadmap targets a 45% increase in bed capacity over the next two years. The brokerage also referenced FY27 guidance of 24% revenue growth and 19% EBITDA growth.

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