Medanta Q4FY24 review: Diverse revenue mix, ARPOB set for 4.6% CAGR

We initiate coverage on Global Health Ltd. with a Buy recommendation and DCF-based target price of Rs 1,475/share (enterprise value/Ebitda of 26.5 times FY27E Ebitda), implying an upside of 25% from the current market price. Medanta boasts a robust Brand Equity, established by Dr. Trehan, a globally recognized cardiovascular and cardiothoracic surgeon.

The company has fortified its position with a strong moat, providing the highest standard of care and specializing in high-complexity work. A diverse revenue mix, notably from complex specialties like Cardiac, Digestive, Oncology, and Neuro (constituting 59% of overall revenue), contributes significantly to its financial profile.

Additionally, the Institute of Liver Transplantation, Kidney and Urology, Orthopedics, and Internal Medicine involve intricate procedures, further propelling the company’s topline growth.

For full Q4FY24 results review, click. Axis Securities