1 largecap and 1 smallcap hospital stock to buy as HSBC remains bullish on healthcare sector

ZeeBiz WebTeam | Sep 13, 2024, 11:29 AM IST

Global brokerage amid the rising demand for good healthcare said companies profitability in the space will be tracked based on project execution.

1/10

Amid demand for quality heallthcare, global brokerage has sounded bullish on the pack. It said that the country's listed hospitals have embarked on a capex cycle.

2/10

Key to growth

It added that seven hospitals in our coverage plan to add 14,000 more bedss in the next 3-5 years. Key is clinical differentiation, & integrated ecosystem, it added.

3/10

Apollo Hospitals

For the hospital stock, the brokerage maintains buy with a raised target of Rs 7,720 from the earlier Rs 7,215.

4/10

For Krishna Medical (KIMS), the brokerage has initated a buy with a target of Rs 3,300. The stock in today's session traded ex-split in the ratio of 1:5 today.

I

5/10

Bets on KIMS strong operational performance

An affordable healthcare provider with a strong record of solid operational execution in its focus markets, said the brokerage about KIMS.

6/10

Key monitorable for now for KIMS remains its expansion of its hospital network

The brokerage estimates PAT CAGR of 26 per cent over FY24-27e, led by volume growth on bed additions & an improving mix. Further it adds that opening of new hospitals remains the key to watch.

7/10

Initiates sell on Global Health

For Medanta owned by Global Health, HSBC is bearish and suggested a 'sell' with a target of Rs 930. The target implies a downside of nearly 17 per cent.

8/10

Current prices do not go in sync with the challenges

At present the company to upscale in terms of new beds, hiring doctors and adding clinical specialities. Also, the brokerage added that the current market price of the stock does not truly reflects the challenges in its key lucknow market.

9/10

Narayana Hrudayalaya

For the stock, HSBC has initiated sell with a target of Rs 1,000. The company has been focussing heavily for better operational performance as well as scaling its presence in key markets.

10/10

Margin drag expected

So in light of the huge capex, the brokerage sees a drag in margin for the stock. The set target implies a downside of 27 per cent.

Next
Gallery