Anand Rathi sees 40% rally in multibagger healthcare stock despite 600% rise in five years
Anand Rathi remains positive on the Multibagger healthcare stock Indraprastha Medical Corporation, maintaining it as a top pick, and expects about 40% upside to the target price of ₹ 590.
The Indraprastha Medical Corporation share price has risen more than 69% in a year. while it has grown almost 4-fold in the last two years. The Indraprastha Medical Corporation share price is up almost 613% in the last 5 years and has given Multibagger returns to the investors.
The primary re-rating trigger, as per Anand Rathi Research, is the Delhi government's stake sale expectation in the company
As per Anand Rathi, referring to their interaction with the management, they say that it was revealed that the promoters are negotiating to purchase all or a portion of the Delhi government's 26% stake, which they currently hold.
Although the timeline is uncertain, as per Anand Rathi Research, they think that if the deal proceeds, it will create more room for expansion in both emerging and existing regions, including the NCR.
Indraprastha is expanding its bed capacity from the present 802 beds. The expansions at its current location in Sarita Vihar (Delhi) are in accordance with the industry's expansion of bed capacity, with 350 beds anticipated to be added by mid-CY28.
The projected cost of this is ₹ 580 crore. About 40% of the project's cost is anticipated to be spent in FY26, with the remaining amount falling in FY27 and FY28.
Because the corporation is spending about Rs1.8 billion to create two underground floors for parking (about 1,300 automobiles and 350+ two-wheelers), the cost per bed is greater for this site. The goal is to increase the number of beds to approximately 1,800 at one location, which would likely be the largest number of beds at one location.
Anand Rathi research says that, further, with the new government coming in, Delhi should augur well for the company as it can expedite the Delhi government's stake sale to the promoters (can be an option value). They have broadly maintained their estimates for FY26 and FY27.
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.
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