Park Medi World shares hit an intraday high of ₹392 per share on NSE, just ₹13 away from its existing peak of ₹305 per share, as reported by Live Mint. The stock opened with an upside gap at ₹286 per share and touched the intraday high within minutes of opening, demonstrating strong market confidence following the company's Q1FY27 results. The healthcare stock has risen on three out of four sessions this week, with strong buying witnessed on Monday after the Q1 results announcement, though it faced profit-booking pressure on Tuesday before recovering for two consecutive sessions.
Emkay Global Financial Services has retained its 'Buy' rating on Park Medi World and raised its target price to ₹375 per share from ₹350. According to reports from Live Mint and Moneycontrol, the upward revision comes after the company's June quarter earnings surpassed the brokerage's estimates and implies a potential upside of about 32% from the stock's latest closing price of ₹285 per share. The brokerage based the revised target on 21x Jun-28E EV/EBITDA multiple, reflecting confidence in the company's acquisition-led expansion strategy. Choice Broking has also issued a target of ₹350, maintaining a bullish outlook on the healthcare stock.
As reported by Live Mint and Moneycontrol, Park Medi World delivered robust June quarter performance with revenue rising 19% year-on-year to ₹475.7 crore from ₹399 crore in the corresponding quarter last year. The company's profit after tax grew 42% YoY to ₹82.5 crore from ₹58 crore, supported by strong operating performance. EBITDA rose 20% YoY to ₹126.1 crore from ₹105 crore, while the EBITDA margin improved marginally to 26.5% from 26.3% year-on-year. The strong performance was driven by 12% YoY growth in average revenue per occupied bed (ARPOB) following the revision in CGHS rates and the company's focus on profitability. Emkay notes that management's laser-like focus on profitability (1Q PATM expanded by 156bps YoY) and the ramp-up of new units provide comfort on FY27 guidance.
According to Live Mint, inpatient volumes increased 16% YoY while outpatient volumes grew 17% YoY during the quarter. The average length of stay improved to 5.9 days in Q1FY27 from 6.4 days a year earlier. However, occupancy declined to 55.6% from 67.8% in the year-ago period due to significant capacity additions, with bed capacity expanding 32% YoY. The CONGO mix improved to 51.2% from 46% a year ago, while the payor mix stood at 23% cash + TPA and 77% government patients during the quarter. The company continues to execute its acquisition-led expansion strategy, strengthening its cluster presence in the Punjab Tricity region through the recently announced acquisition in Zirakpur, located around 15-20 km from its Mohali facility.
As reported by Live Mint and Moneycontrol, the company's management has laid out a clear expansion roadmap, targeting a 45% increase in bed capacity over the next two years with visibility on around 1,800 bed additions over the next 18 months. The management's FY27 guidance of 24% revenue growth and 19% EBITDA growth reflects its focus on profitable growth despite significant capacity additions. Choice Broking highlights that management plans to expand capacity from 3,960 beds to over 10,000 beds by FY33, creating a long-term growth runway, with another 1,000 beds planned in FY28 through projects at Gorakhpur, Ambala Oncology, Mohali and Rohtak. The company's focus on profitability, along with the ramp-up of new hospitals in Panchkula, Rudrapur and Agra, supports its FY27 guidance. Emkay expects the company to deliver a 25% revenue CAGR over FY26–FY29, driven by ARPOB CAGR of 5% and occupied bed days CAGR of 19%.
According to Live Mint, Emkay highlighted that delays in collections from government scheme patients and execution risks in new markets are key risks to monitor. The brokerage expects the company's improving payor mix, greater focus on high-acuity procedures, and affordable healthcare offerings to support healthy returns despite aggressive expansion plans. Choice Broking notes that management expects the payer mix to improve, from 77% government and 23% private to 70% government and 30% private, within 12–15 months. The company's net cash balance sheet, improving cash conversion cycle, and low capex-per-bed model should continue to support a re-rating. With the Zirakpur acquisition factored in, Emkay has revised its EBITDA estimates upward by 4% each for FY28 and FY29. The improving case mix and CGHS rate revisions during the remainder of the year are expected to offset investments in new hospitals.
