Manipal Health Enterprises Ltd. has received a 'buy' rating from Jefferies, as the brokerage began its coverage for the stock with a target price of Rs 870.
The target price implies an approximately 21% upside to its current market price of Rs 742.90 apiece. The brokerage cited the healthcare giant's "excellence at scale," as one of the primary reasons for the bullish call.
In the last five years Manipal has made five acquisitions with a combined cash outflow of Rs 9,000 crore to enter new markets such as Kolkata (AMRI, Medica) and Pune (Sahyadri) and strengthen presence in its top market Karnataka (Columbia Asia and Vikram).
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
ALSO READ: Adani Ports Stays Bernstein's Top Pick With Key Risks Easing — Three Reasons To Buy The Stock
Jefferies said, "standardised protocols, targeted capex, and disciplined operations have enabled Manipal to scale efficiently while improving profitability of the acquired assets," adding that Sahyadri, the company's biggest acquisition till date, is already reaping fruits of profitability from the deployment of its established integration playbook.
"Manipal Hospitals (Manipal) is the third-largest hospital chain with leading operational and financial metrics," Jefferies noted, adding that certain factors position it will to achieve a 17% revenue and 19% Ebitda compound annual growth rate over Fiscal 2026 and 2028.
These factors include Manipal Health's diversified geographical presence, its dominant position in three metros, and a strong track record turning around acquisitions and a "healthy" mix of brownfield or greenfield expansion.
"Over FY26-30, Manipal plans to add 2,426 beds (26% of current capacity) of which 1,943 beds (80%) are greenfield and 483 are brownfield," Jefferies highlighted,
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
