KIMS surges to record high after HSBC initiates coverage with buy rating; target implies 21% upside
Krishna Institute of Medical Sciences (KIMS) Share Market News: Krishna Institute of Medical Sciences (KIMS) shares saw buying interest as the stock of the hospital operator began trading ex-split in the ratio of 1:5. Many analysts are positive on KIMS for the companys long-term growth potential and operational execution.
Krishna Institute of Medical Sciences (KIMS) Share Market News: Krishna Institute of Medical Sciences (KIMS) shares soared to a record high as the stock of the hospital chain operator traded ex-split in the ratio of 1:5. The KIMS stock jumped by as much as Rs 33.6, or 6.1 per cent, to Rs 580.1 apiece on BSE. Many analysts are positive on KIMS for the company's long-term growth potential and operational execution.
HSBC initiated coverage on KIMS with a 'buy' rating and a target price of Rs 3,300, implying an upside of about 21 per cent over its adjusted previous close.
According to the foreign brokerage, KIMS is an affordable healthcare provider with a strong record of solid operational execution in its focus markets.
HSBC estimates KIMS to register a CAGR of 26 per cent in its net profit over the period from FY24 to FY27, led by volume growth on bed additions and an improving mix.
The opening of new hospitals will be a key thing to watch out for, according to the brokerage.
Here's how KIMS shares have fared in comparison with some of their peers:
| Stock | Return (%) | PE (TTM) | |
| YTD | 1 year | ||
| KIMS | 38.2 | 30.6 | 93.7 |
| Apollo Hospitals Enterprise | 22.5 | 40 | 96.9 |
| Max Healthcare Institute | 32.9 | 57 | 124 |
| Global Health | 18.1 | 60.1 | 80.7 |
| Narayana Hrudayalaya | 8.9 | 26.6 | 64.8 |
How KIMS fared in Q1 FY25
Hyderabad-headquartered Krishna Institute of Medical Sciences registered a consolidated net profit of Rs 86.6 crore for the quarter ended June 30, making an increase of 7.2 per cent over the corresponding period a year ago.
Its quarterly revenue expanded to Rs 688.4 crore from Rs 606 crore a year ago, according to a regulatory filing.
The company reported Rs 184 crore in June-quarter earnings before interest, taxes, deprecitation, and amortisation (EBITDA), marking an increase of 14.9 per cent.
Its EBITDA margin—a key measure of operational performance—expanded to 26.6 per cent from 26.3 per cent a year ago.
The company said its bed occupancy stood at 49.8 per cent in the April-June period.
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