IKS has come up with three key client engagement models: Underwriting performance outcome model (e.g., Palomar Health – running successfully currently). Investing in medical group growth. JV structure, which has the lowest level of capital requirement – currently in use for WWMG deal. These constructs lead to higher Ebitda gains on top of ~900 bps of Ebitda gain just from platform implementation – from synergies (220 bps) and compounding effect (60 bps), resulting in total Ebitda gains worth 1,170 bps.
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ICICI Securities Report
Inventurus Knowledge Solutions Ltd. announced a $17 million investment via its US subsidiary to acquire a 48.02% stake in IKS WWMG MSO LLC, a newly formed Management Services Organization in the US. Our remarks:
We reckon a resemblance with the Palomar-like deal blueprint (announced in Q3 FY25, wherein IKS paid $16.5 million). This JV investment reflects IKS’ maturing capital strategy—moving from balance-sheet leveraged deals to structured, transparent, and accountable JVs.
It will likely forge client stickiness for IKS. Success shall hinge on disciplined execution, integration with core offerings, and realisation of strategic and financial synergies.
We maintain our Add rating on IKS with a Q2 FY27 target price of Rs 1,820 (based on 35x target P/E).
Key risk: Lack of cost and revenue synergies with Aquity.
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