Shares of Narayana Hrudayalaya opened at ₹1,840 against its previous close of ₹1,815.80 and extended positive momentum by up to 3% to hit an intraday high of ₹1,876 on Monday, August 24. As per CNBC TV18, the stock was trading 2.85% higher at ₹1,867.50 as of 2:29 pm, significantly outperforming the Nifty 50 benchmark which dropped 0.26%. The positive market response reflects investor confidence following Kotak Institutional Equities' upgrade to Buy rating, with the target price of ₹2,350 implying nearly 29% upside from Friday's close of ₹1,815.80. According to The Economic Times, the stock has recovered after testing crucial support levels around ₹1,780-1,790 and is now trading above several moving averages, indicating positive momentum for short-term traders.
Kotak Institutional Equities upgraded Narayana Hrudayalaya to Buy from its previous rating, with a target price of ₹2,350. The upgrade is underpinned by strong fundamentals in the company's domestic hospital operations, with the brokerage highlighting that market concerns surrounding the healthcare company's insurance initiatives are overblown. According to CNBC TV18, the stock has been under pressure following higher losses in the company's insurance verticals in India and Cayman during Q1 FY27, with the Indian insurance business reporting a loss of around ₹20 crore and the Cayman insurance vertical posting a loss of approximately ₹35 crore. However, Kotak expects the combined ratio in the Indian insurance business to gradually improve as the retail mix increases, and remains relatively more sanguine about Narayana Hrudayalaya's Cayman insurance foray, citing the company's dominant healthcare presence and high renewal rates following recent repricing.
On a consolidated basis, Narayana Hrudayalaya delivered robust financial results in Q1 FY27, with profit after tax rising 5.7% year-on-year to ₹207.30 crore, though it declined 9.2% quarter-on-quarter. As per CNBC TV18, revenue from operations jumped 78% YoY and 3.5% QoQ to ₹2,683.60 crore in the quarter ended June 30, 2026. EBITDA increased 40% YoY to ₹505.20 crore, reflecting strong operational performance across the company's diversified portfolio. India operating revenue grew 17% YoY and 6% QoQ to ₹1,324.70 crore, while Cayman operating revenue increased 39% YoY to ₹551.40 crore. The newly acquired UK business reported operating revenue of ₹825.70 crore in Q1 FY27, up 2.1% QoQ.
The core India hospital segment delivered robust operational metrics, with EBITDA growth of 39% year-on-year in Q1 FY27, reflecting resilient patient volumes, operational efficiencies, and superior cost management. According to CNBC TV18, Kotak expects EBITDA to have delivered an 18% CAGR between FY23 and FY26 and forecasts a 14% CAGR between FY26 and FY29E. At the current market price, Kotak said Narayana Hrudayalaya's India hospital business is trading at an attractive valuation of around 17 times FY28E pre-Ind AS 116 EV/EBITDA. The brokerage highlighted that the company's standalone India hospital portfolio is currently trading at attractive valuations, presenting a favorable risk-reward profile for long-term investors.
According to Kotak Institutional Equities, key catalysts for Narayana Hrudayalaya's growth prospects include price hikes absorption in Cayman, narrowing integrated care losses, and UK margin expansion. The Cayman insurance business is expected to achieve EBITDA breakeven by the end of FY28, following strong market acceptance of recent price increases. Margins in the United Kingdom operations are poised for expansion, supported by better capacity utilization and optimized cost structures. These positive triggers across the company's overseas operations provide additional support for the upgrade, with the brokerage remaining relatively more sanguine about Narayana Hrudayalaya's Cayman insurance foray citing the company's dominant healthcare presence and high renewal rates following recent repricing.
