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.
PL Capital Report
With earnings season round the corner, PL Capital recommends 10 stocks to Buy in healthcare pack.
Q4 FY26 is expected to be a mixed bag for hospitals with elective procedures rebounding according to PL Capital. However, some impact on occupancy is likely to be seen due to the Middle East conflict, new bed additions and festivals like Ramadan.
The brokerage estimates the sector to deliver 18% YoY Ebitda growth (up 4% QoQ), supported by healthy avearge revenue per occupied bed and new bed additions.
Despite initial losses from new bed additions, strong ARPOB momentum, improving operating leverage, central government health scheme rate hikes and sustained bed additions position the sector for growth over the medium term.
Max Healthcare, Fortis, HCG and Rainbow are PL Capital's top pick in the sector.
Top Picks
Fortis:
Though hospital margin has improved by 550bps YoY over FY23-9MFY26 to 23%, PL Capital sees further scope for improvement aided by-
- improving case and payor mix,
- cost rationalisation initiatives and ramp-up of Manesar and Greater Noida units, and
- new brownfield bed additions.
Additionally, the brokerage expects margin to expand further, driven by the recent acquisition of Shrimann Hospital and the O&M agreement with Gleneagles. PL Capital expects Ebitda to clock 20% CAGR over FY26-28E. Maintain ‘Buy' rating.
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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
