Buy Inventurus Knowledge Solutions DM Ltd For Target Rs.2,033 by Motilal Oswal Financial Services Ltd
Performance in line, progress on TruBridge integration remains a key catalyst
* Inventurus Knowledge Solutions’ (IKS) 2QFY27 USD organic revenue was up 13% YoY at USD101m (est. USD100m). TruBridge contributed ~USD68m (est. USD65m). Overall USD revenue stood at USD169m (est. USD165m), while INR revenue was INR15.9b (est. INR15.2b).
* Combined EBITDA stood at INR4.4b with margin of 27.7% (est. INR3.8b | margin 23.4%).
* PAT at INR2.1b was up 28% YoY (est. INR2.3b).
* We expect revenue/EBITDA/PAT CAGR of 50%/37%/21% in over FY26- 28. We value the stock at 33x FY28E EPS to arrive at a TP of INR2,033 and maintain our BUY rating on the stock
Our view: US healthcare cost pressure remains a structural tailwind
* TruBridge integration is progressing well, with stronger-thananticipated customer stickiness, significant cross-selling opportunities and higher potential operating synergies.
* Acquisition strengthens IKS's presence across ambulatory and acutecare markets, positioning it as an integrated healthcare platform offering end-to-end clinical and financial solutions.
* TruBridge's 600+ hospital EHR customer base, of which only ~200 use its RCM solutions, provides significant opportunities to cross-sell IKS's medical coding, clinical documentation and AI-enabled services.
* Access to ~17.5-20m patient records through TruBridge is expected to accelerate proprietary AI model development and strengthen IKS's long-term competitive advantage.
* FY27 will remain a stabilization and integration year for TruBridge, with growth expected to recover from FY28 and its system-of-action business targeting 10-12% growth by late FY28/early FY29.
* IKS aims to integrate three priority AI solutions—denial prediction and prevention, autonomous medical coding and clinical productivity— into TruBridge's existing EHR platform by 1QFY28.
* Project Endeavor, a next-generation AI-native healthcare operating system, aims to integrate EHR data, proprietary intelligence and autonomous workflows, potentially supporting growth from FY29 onward.
* Initial customer discussions indicate strong demand for integrated solutions, with two TruBridge hospitals already evaluating IKS's complete system-of-action platform.
* IKS secured four customer wins, including cross-selling at Augusta Health and new logos White Wilson, Evolve and UMass Memorial. TruBridge added MISH, a specialty surgical hospital.
* We expect operating synergies to materialize from 2HFY27 on the back of global delivery optimization, RCM automation, medical coding productivity and SG&A rationalization.
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