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As Jeena Sikho Lifecare continues to scale up its integrated Ayurveda healthcare ecosystem, we interacted with the company's senior management, including Mr. Manish Grover (Managing Director), Mr. Nanak Chand (Chief Financial Officer), Dr. Ish Sharma (Executive Director) and Mr. Ankush Kaushal (Executive Director), to gain deeper insight into its long-term growth strategy, expansion roadmap and preventive healthcare model.

The discussion reinforced our view that the company has moved from proving its model to scaling it up. The management remains focussed on adding beds, deepening the preventive care ecosystem and widening its wellness and product offering. JSLL is targeting 7,000–10,000 operational beds over the next 3–5 years through a capital-efficient expansion model, while guiding for ~30% annual revenue growth, a balanced 50:50 services-products mix and 4–5x PAT growth over the same period. The management projects EBITDA margin of 40%+ and PAT margin of 27–30% to be sustained.

Expansion Strategy & Growth Plans

* The management reiterated its target of 7,000–10,000 operational beds in 3-5 years, supported by a capital-light expansion strategy

* Operational beds are anticipated to increase to nearly 3,000 within 3-4 months. New large hospital projects are under evaluation in Lucknow, Ahmedabad, Patna, Kolkata and Pune, alongside capacity addition in Mumbai

* Beyond organic bed additions, JSLL is actively exploring acquisition opportunities to speed up network expansion and enter new geographies. This adds a second growth lever to the greenfield and lease-based rollout

* Jeena Sikho commenced international expansion with its entry into the UAE, while premium wellness resorts and specialised treatment centres are expected to broaden the addressable opportunity.

Capital-efficient Expansion Model

* The company continues to operate one of the most capital-efficient expansion models in the healthcare sector, requiring only INR 3-4 lakh per bed, with six-month payback for smaller facilities.

* The management reiterated that the company is partnering with Ayurveda medical colleges to accelerate hospital expansion. Each partnership can provide access to up to ~100 operational beds at an estimated capex of only ~INR 1 lakh per bed, significantly lower than conventional hospital expansion and further improving capital-efficiency.

Operational & Demand Drivers

* Higher occupancy across newly-operational beds is projected to remain a key profitability driver, with incremental patient volumes benefitting from significant operating leverage.

* The company continues to focus on improving its private payer mix while reducing exposure to government receivables, supporting stronger cash flows and capital-efficiency.

* Increasing insurance penetration, higher patient retention and expansion of research-backed Ayurveda offering are anticipated to improve revenue quality and strengthen margin in the medium term.

Valuation:

We maintain our ‘BUY’ recommendation on JSLL with our target price of INR 1,000 on the basis of our DCF valuation. We project JSLL to deliver significant Revenue/EBITDA/PAT CAGR of 33.6%/34.9%/39.4% over FY26–29E, respectively. This equates to an implied PE of 28x on FY28 EPS and PEG of 0.8x, which further supports our valuation

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