Nomura Backs IKS Health On Integrated Tech, Strong Client Base; Initiates Coverage — Check Target Price

Inventurus Knowledge Solutions Ltd. is an attractive play on the US healthcare provider space, says brokerage firm Nomura, initiating coverage on the stock. Nomura values the stock at a target price of Rs 2,000, implying a 28% upside from the previous close.

The brokerage notes that the US healthcare outsourcing market is poised for a 12% CAGR through 2023-28 as the industry — complex, heavily regulated, and behind on tech modernisation — faces mounting cost and regulatory pressures.

This environment, Nomura says, creates strong demand for integrated care-enablement platforms, with Zinnov estimating the outsourced provider-centric tech solutions market will reach $59 billion by 2028.

IKS, through its comprehensive platform stack, offers healthcare organisations end-to-end support across the delivery value chain, helping them focus on core clinical work while it manages administrative “chores.” Its proprietary technology integrates with EHR systems and spans 16 feature clusters, including revenue optimisation, physician support, digital health and EHR assimilation.

The company has also cultivated long-term relationships with marquee enterprise clients, with 48% of FY24 revenue coming from customers using more than four solutions and an average top-10 client relationship vintage of nearly six years.

Nomura highlights IKS’s five-pronged growth strategy: an AI-native platform, cross-selling to Aquity clients, deepening platform leadership, a land-and-expand market approach, and evolving into an outcome-oriented model.

It expects revenue to grow at 16% (USD) and EPS at 32% (INR) over FY25-28. However, Nomura also flags risks including weaker-than-expected mining of Aquity clients and poor returns from equity-linked investments.

Shares of the company closed around 2% lower at Rs 1,568 apiece, as compared to a 0.47% decline on Friday.