NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Fortis Healthcare Ltd. Q1 FY25 result was below our expectations. Hospital revenue (up 14%) was boosted by better average revenue per occupied bed(+4% QoQ to Rs 65,924) and occupancy (+100 basis points QoQ to 67%).
However, hospital margin dropped 280 basis points QoQ to 18.5%, dragged by Fortis Escorts Heart Institute, Vashi, Jaipur and Ludhiana (new) hospitals. Management aims for 20%+ margin in hospitals in FY25.
Diagnostic margin contracted 390 bps YoY to 17.9% due to higher rebranding cost and provisions. Fortis is likely to buyback 31% stake in Agilus from price to earning investors in next couple of months and fund it via debt (debt to Ebitda max at 1.5 times).
It is also adding 400 brownfield beds in FY25 which may increase leverage. We trim Ebitda estimates by ~2% for FY25-26E.
Downgrade to 'Hold' with revised target price of Rs 490 (earlier Rs 500), valuing hospitals/diagnostics at 21 times/23 times FY26E enterprise value/Ebitda, respectively.
Click on the attachment to read the full report:
LTIMindtree Gets GST Demand Notice Of Rs 62.4 crore
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
. Read more on Research Reports by NDTV Profit.