Buy Medanta share, price target Rs 550: Jefferies

Medanta share price: Global Brokerage firm Jefferies has recommended a 'buy' rating on Medanta. It said that the healthcare provider can drive 17 per cent revenue compound annual growth rate (CAGR) along with 70 basis points margin expansion over FY22-25. The brokerage firm said that it believes that the company will close the value gap with peers.

Shares of Global Health, operator of the Medanta chain of hospitals, traded flat today even as benchmark indices Sensex and Nifty tanked 1 per cent each.

Jefferies said that Global Health, operator of the Medanta chain of hospitals, shares can yield more than 20 per cent return from the current level. It recommended buying the shares for a target price of Rs 550.

"As compared with its peers, Global Health's asking price comes with a lower P/E of 38.36, with an average EPS of Rs. 4.51 and an average RONW of 7.21 per cent," Manoj Dalmia, founder and director, Proficient Equities, said.

"Investors can invest with a long-term perspective," he added.

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Shares of Medanta made stock market debut on November 16, yielding around 19 per cent returns. The counter has yielded a positive return of 8 per cent since listing in the secondary market.

Global Health operates a network of five hospitals under the brand name Medanta. These hospitals are based in Gurugram, Indore, Ranchi, Lucknow and Patna. One hospital is under construction in Noida.

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