Buy Jupiter Life Line Hospitals Ltd For Target Rs. 1,600 by Prabhudas Liladhar Capital Ltd
Strong growth ex Dombivli unit
JLHL’s Q4 consolidated EBITDA grew by 12% YoY to Rs 892mn; in line with our estimates. Adjusted for Dombivli unit loss; EBITDA growth was strong at 24% YoY. Its operational efficiency has been strong in the competitive markets of MMR. The company reported revenue/EBITDA CAGR of ~20% over FY23-26. Given its expansion plans, scale-up in occupancy and improving margins, growth momentum is expected to sustain over the medium term. We believe strategic greenfield expansions in densely populated micro-markets of western regions will drive sustainable growth. Our FY27E and FY28E EBITDA stands marginally increased by 3-4% as we factor in faster occupancy ramp up in Dombivli unit. Overall, we see 17%/10% CAGR in EBITDA/PAT over FY26-28E. Maintain ‘BUY’ rating with a TP of Rs1,600/share, valuing at 23x EV/EBITDA based on FY28E EBITDA.
In-line EBITDA; 24% YoY EBITDA growth Ex of Dombivli unit:
JLHL Q4FY26 EBITDA increased 12% YoY to Rs 892mn. OPM declined by 60bps YoY and improved by 20bps QoQ to 23%. During the quarter, JLHL operationalised new Dombivli unit with 200 operational beds and reported an EBITDA loss of INR 94mn. Adj for Dombivli losses, EBITDA growth was at 24% YoY. Adjusted PAT stood at INR 500mn; up 11% YoY; in line with our estimates.
Strong ARPOB; YoY occupancy declines due to new bed addition:
JLHL reported revenue growth of 15% YoY to INR3.9bn vs we estimated at INR 3.8bn ARPOB continues to improve by 12% YoY to INR 67.7k per day for FY26, driven by maturation of the Indore unit and improvement case mix, insurance renewals and inflation-linked pricing. Occupancy for FY26 decreased by 410bps YoY to 61.2%, Ex of Dombivli unit it was at 62.3%; down 300 bps YoY impacted by weak seasonality and new bed addition at Indore unit. IP & OP volumes increased by 4% YoY & 9% YoY respectively in Q4. For FY26, IP volumes increased 2% YoY, while OP volumes increased 10% YoY.
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SEBI Registration No. INH000000271Accumulate Paradeep Phosphates Ltd For Target Rs.141 by Prabhudas Liladhar Capital Ltd
