Choice Institutional Equities has maintained its buy rating on Park Medi World with a target price of ₹350 in its latest research report, implying an upside of 20.5% from the previous session's closing price. According to the brokerage's assessment, the company continues to expand its footprint across North India while strengthening its existing healthcare clusters. The recommendation is based on the company's scalable cluster-led growth strategy and disciplined capital allocation approach, with the target price reflecting confidence in the company's operational execution capabilities across its expanding healthcare network.
During their visit to the company's facilities, Choice Institutional Equities met with key management personnel including Mr. Sudesh Sharma - Chief Strategy Officer and Mr. Saurabh Pant – Head of Investor Relations. As reported by the brokerage, the interaction provided valuable insights into Park Medi World's expansion strategy across existing and new markets, including the upcoming Park Hospital Platinum facility in Gurugram and the recently-acquired Medicity Hospital in Rudrapur. The management reiterated their focus on scalable cluster-led growth, disciplined capital allocation, operational efficiency and strengthening presence in underpenetrated healthcare markets.
The commissioning of Park Hospital Platinum will increase the group's consolidated bed capacity in Gurugram to 750 beds, strengthening its position in one of North India's competitive healthcare markets. The management continues to focus on scalable cluster-led growth, disciplined capital allocation, operational efficiency and strengthening presence in underpenetrated healthcare markets. The company maintains its long-term aspiration of reaching 10,000 beds by FY33, demonstrating ambitious expansion plans across the healthcare sector. The recently acquired 330-bed Medicity Hospital in Rudrapur, Uttarakhand, purchased for ₹1.77 billion, marks the company's entry into the state and is expected to commence operations by next month-end with all beds operational from Day One, targeting ₹1 billion revenue in the first year.
Choice's forecast indicates significant earnings growth for Park Medi World, expecting revenue to rise from ₹16.8 billion in FY26 to ₹39.4 billion by FY29, with stable EBITDA margins of 26.5%. The brokerage projects EBITDA to increase from ₹4.4 billion to ₹10.4 billion during the same period, while PAT is estimated to increase from ₹2.6 billion in FY26 to nearly ₹7 billion in FY29. ROCE is projected to improve to 25.4% by FY29 from 19.5% in FY26. The company's total capacity is expected to reach around 5,590 beds by March 2028, supported by ongoing integration of acquired hospitals and expansion of existing facilities.
The shares of Park Medi World have demonstrated strong performance with 93% growth this year so far, according to BSE Analytics data. However, shares declined in today's trade at ₹286.70 per share on the NSE, down 1.29%. Choice Institutional Equities continues to value the company at 18x EV/EBITDA on FY28E and maintains their 'BUY' rating with the target price of ₹350. The brokerage noted that the company's 100 percent asset ownership, efficient bed mix, procurement scale benefits and industry-low capital expenditure of around ₹34-35 lakh per bed support the delivery of affordable tertiary and quaternary care while maintaining healthy profitability. The acquisition strategy remains focused on underpenetrated, high-growth healthcare markets based on strategic location, healthcare infrastructure gaps, expansion potential and availability of distressed assets at attractive valuations.
