Buy Park Medi World Ltd for the Target Rs.350 by Choice Institutional Equities
Key Conference Call Highlights
Operational Updates
* FY26 marked the strongest year in the company’s history across every key operating and financial metric, with record revenue, profitability and occupancy level.
* The company undertook its largest-ever single-year capacity addition of 610 beds through the commissioning of the 250-bed Bhatinda facility and 360-bed Agra acquisition.
* FY26 census bed capacity stood at 2,851 beds, while the total capacity has now reached 3,960 beds after Panchkula commissioning.
* Around 56.9% of revenues are now contributed by high-end specialties.
* Management highlighted that greenfield hospitals typically turn EBITDA-positive within the first year, while brownfield acquisitions become PAT-positive from the first month itself.
Expansion Pipeline and Capex
* The company aims to add ~1,500 beds by March 2028, taking the total capacity to ~5,460 beds.
* Panchkula was developed as a 350-bed greenfield project at a capex of ~INR 125 crore, implying an efficient cost of ~INR 35 lakh per bed.
* FY27 capex guidance stands at ~INR 550 Mn, while FY28 capex is expected at ~INR 2500 Mn.
* The company is significantly strengthening its oncology footprint, with the Ambala facility being expanded by 200 beds primarily dedicated towards oncology and advanced cancer care services.
* The current focus remains on consolidating presence across North India before expanding into South, East and West India.
Acquisition Strategy
* Of the 16 existing hospitals, 10 were acquired while the remainder were developed through greenfield expansion.
* Management reiterated that acquisition evaluation is based on strategic location, regional strength, existing healthcare infrastructure gaps, expansion headroom and availability of distressed assets at deep discounts.
Outlook
* Long-term management aspiration is to scale up the network to 10,000 beds by FY33.
* The company continues to maintain a non-hub-and-spoke operating structure, focusing instead on regional cluster synergies with hospitals located within 40–50 km of each other.
* Management expects government receivable days to reduce from ~3 months at present to below 100 days over the next year.
* Recent CGHS tariff revisions are expected to provide a 7–7.5% revenue benefit, with the full impact likely to reflect post Q1FY27.
* The management indicated that the long-term payor mix is expected to stabilise at nearly 75% government share, while the remainder would comprise insurance and self-pay patients.
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SEBI Registration no.: INZ 000160131
