Aster DM Healthcare Q4 Results Review - Margin, Bed Expansion To Drive Growth: Prabhudas Lilladher

Prabhudas Lilladher Report

Aster DM Healthcare Ltd. Q4 consolidated Ebitda grew strong by 29% YoY to Rs 1.6 billion. GCC stake sale concluded in March 2024 and the company distributed 80% of proceeds as a one-time dividend.

Aster DM India’s Ebitda increased sharply over the last three years (29% CAGR over FY22-24). We estimate 30% Ebitda compound annual growth rate over FY24-26E aided by scale-up in margins, healthy average revenue per operating bed and bed additions.

Our FY25E/26E estimates for India business Ebitda remain unchanged. At current market price, the stock is trading at 20 times earning value/Ebitda on FY26E, respectively adjusted for minority stake and rental.

We maintain ‘Buy’ rating with target price of Rs 400, valuing the India hospital segment at 23 times earning value /Ebitda on FY26E Ebitda.

Utilisation of proceeds and timely expansion will be key monitorables in the near term.

Click on the attachment to read the full report:

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.