Buy Krishna Institute of Medical Sciences; target of Rs 800: Prabhudas Lilladher

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Strong ARPOB growth of 15% YoY, driven by increasing operational beds and improving occupancy rates
  • New unit ramp-ups, including Thane and Mahadevapura, contributing to revenue growth and expected to achieve breakeven in the next 3-4 years
  • Lean cost structure and partnerships with local doctors/leadership outside Andhra Pradesh and Telangana, expected to drive faster breakeven and +25% OPM across Maharashtra, Karnataka, and Kerala clusters
  • Bed expansion plans, including the commissioning of new hospitals and renovation of existing facilities, expected to drive long-term growth

Thesis Validation Checklist

  • Occupancy rates and ARPOB growth across clusters, particularly in new units like Thane and Mahadevapura
  • EBITDA margin expansion, driven by operational efficiencies and cost discipline
  • Progress on bed expansion plans and new hospital commissions
  • Management's ability to stabilize existing operations and drive growth in new clusters