HSBC has maintained a ‘Buy’ rating on Krishna Institute of Medical Sciences (KIMS), assigning a target price of ₹805, implying an upside of 8% from the current market price of ₹744.95.
The brokerage noted that Q1FY26 revenue was in line with expectations, but EBITDA margins came under pressure due to losses from newly commissioned hospitals, particularly the Thane unit. Despite the short-term impact, HSBC remains constructive on the stock, anticipating that most new facilities will become cost-neutral within 12 months of their operational start.
HSBC reiterated that the company’s long-term outlook remains intact, and near-term margin volatility is a function of its expansion-led growth strategy, which is expected to yield scale benefits over time.
Disclaimer: The views and recommendations expressed by HSBC are their own and do not represent the opinion of this publication. Investors are advised to consult a certified financial advisor before making any investment decisions.
