Buy Narayana Hrudayalaya; target of Rs 2250: ICICI Securities

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • India operations: Strong growth driven by healthy volume expansion and better surgical mix, with a growth run-rate of 16.7% in India hospital revenue.
  • Cayman margins: Improving due to repricing, removal of unprofitable accounts, and process improvements, with EBITDA margin expansion of 883bps QoQ.
  • Capacity expansion: Plans to add 1,900 beds in India by FY30, which is expected to support medium-term growth.
  • Insurance business: Losses shrinking, with a focus on scaling the retail business and building the SME book.

Thesis Validation Checklist

  • Watch for: Continued strength in India operations, improving Cayman margins, and successful execution of capacity expansion plans.
  • Monitor: International patient growth, insurance losses, and NHS commissioning in the UK.
  • Signals for thesis validation: Sustained growth in India hospital revenue, improving EBITDA margins, and successful integration of new hospitals.