Global Health (Medanta) share scales 52 highs, more than doubles in 1 year. Should you Buy, Sell or Hold the stock?

Global Health (Medanta) saw gains of more than 3% in the intraday trades as it  scaled 52 highs on Friday. The stock price has more than doubled in last one year  

The hospital stocks are seeing positive outlook led by pick up in occupancy, rising indoor patient turnover, higher number of surgeries and expansions.

As the business outlook for hospitals in general has improved the Global Health (Medanta) has seen its new hospitals ramp up well. Medanta is witnessing strong demand in its new hospitals (Lucknow and Patna hospitals). The share of new hospitals in overall revenues is also improving favorably. For Lucknow, there is a significant demand-supply mismatch with respect to the population size and bed availability which bodes well for private hospitals as Global Health ( Medanta) said analysts. In Patna, there is a preference for private healthcare given weak infrastructure for government hospitals, as per analysts at Jefferies and Medanta is clearly seeing momentum building in Patna

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 Financial performance of Global Health has also remained supportive say analysts. 

Analysts at Motilal Oswal Financial Services highlighted that over the past four years, Medanta (Global Health) has delivered a stupendous performance (3 time earnings), witnessing a 35% Ebitda CAGR . Moreover, it turned net cash in FY23 from a net debt of ₹300 Crore in FY19.

The outlook remains strong over over FY23-26 too for Global Health (Medanta) on the back of a healthy pipeline of beds being added to the existing facilities (552 beds) and the upcoming ones in Noida, Indore, and South Delhi ( about1,000 beds on a combined basis).

Additionally, ARPOB average revenue per operating bed) is expected to witness a 6% CAGR due to the improving case mix/payor mix, as per analysts at MOFSL. 

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Overall analysts at MOFSL expect 28% earnings CAGR over FY23-26, factoring in faster scale-up of existing hospitals, additional business from new hospitals and better operating leverage. 

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 taking any investment decisions