Buy healthcare stock for over 41% upside potential, says Ventura; target price | 'Positioned for next growth inflection'

Park Medi World is entering a new phase of growth, according to Ventura Securities, which has reiterated its Buy rating and sharply raised its target price to ₹406 from its earlier target of ₹284. At the current market price of ₹286, the revised target implies an upside potential of 41.9% over a 24-month horizon.

Ventura Securities believes the company's execution has remained robust since the brokerage initiated coverage. Faster-than-expected bed additions are positioning Park Medi World to achieve its FY28 capacity target ahead of schedule, while healthy occupancy levels could support both further expansion and margin improvement.

“Since then, execution has remained strong, with accelerated bed additions positioning the company to achieve its FY28 capacity target ahead of schedule. Healthy occupancy levels provide further headroom for both capacity expansion and margin improvement,” said the brokerage.

Park Medi World is also expected to benefit from improving margins, rising average revenue per occupied bed (ARPOB), a growing speciality mix and lower finance costs.

Ventura Securities expects the company's revenue, EBITDA and profit after tax (PAT) to record compound annual growth rates of 26.8%, 28.8% and 33.4%, respectively, between FY26 and FY29E. By FY29E, revenue is projected to reach ₹3,420 crore, EBITDA ₹949 crore and PAT ₹631 crore.

The brokerage expects EBITDA margin to improve by around 140 basis points, from 26.4% to 27.8%, while PAT margin is projected to expand by approximately 280 basis points, from 15.7% to 18.5%.

Ventura said the company is “positioned for the next growth inflection”, supported by its expanding hospital network and improving earnings outlook.

Why Ventura Securities is bullish on Park Medi World

One of the key strengths highlighted by the brokerage is Park Medi World's relatively low capital intensity. The company's capex per bed stands at ₹37 lakh, while its FY27-FY28 expansion programme is budgeted at a blended ₹36 lakh per bed.

The company has also demonstrated its ability to quickly translate capital deployment into operating capacity. Its 360-bed Agra facility was commissioned within two months of acquisition. Ventura highlighted the company's “affordable, volume-led positioning”, which it believes differentiates Park Medi World from several metro-focused hospital peers.

“Park Medi World’s blended ARPOB has increased from INR 26,206 to INR 30,040, supported by a richer case mix and a 440bps YoY increase in super-speciality revenue share to 61.7%,” it stated. Despite this improvement, FY27E ARPOB of ₹30,040 remains below metro peers.

Margins are also expected to benefit as hospitals mature and occupancy rises. Hospitals operating above 60% occupancy generate EBITDA margins of 30-31%, compared with 15-20% for hospitals below this level. New units, meanwhile, are EBITDA-positive from the first year at 10-12% margins.

Ventura pointed to Mohali as an example of this operating leverage, with margins improving from 12-13% in the first year to 18-19% in the second year and around 26% currently, generating EBITDA of approximately ₹23 crore.

The brokerage also noted the “margin ramp-up in action” as recently commissioned hospitals scale their operations.

Project Pipeline

Park Medi World's expansion pipeline is a key growth driver, with 2,680 beds planned across multiple projects, including facilities in Panchkula, Narela, Rudrapur, Gorakhpur, Mohali, Ambala, Rohtak, Palam Vihar and Zirakpur.

The largest project is the 550-bed Park Hospital-Prayagraj PPP project, expected to be commissioned in January 2029. Under a 45-year concession, the company will develop the multi-speciality hospital with estimated capex of around ₹200 crore, of which ₹76.52 crore, or approximately 38%, is reimbursable. Despite an annual concession fee of ₹18.10 crore, rising 3% annually, Ventura views the PPP as “a capital-efficient growth leg” for the company's Uttar Pradesh strategy.

Park Medi World share price

The stock ended 0.9% lower at ₹278.35 per share on BSE. It had hit its 52-week low of ₹138.15 in December last year and its 52-week high of ₹305.25 in July 2026.

The healthcare stock has lost 4% in 1 week, over 5% in 1 month but had jumped over 45% in 6 months.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.