Avendus Capital has initiated coverage on Inventurus Knowledge Solutions (IKS) with a buy rating and a target price of ₹2,020 per share, implying an upside of nearly 20% from the current market price of ₹1,688.
In its initiation note, Avendus Capital highlighted IKS’ growing relevance in the healthcare services ecosystem, particularly due to its shift towards outcome- and output-based pricing models. According to the brokerage, this transition is likely to drive stronger value creation for clients while fostering sticky, long-term relationships.
Avendus noted that Inventurus Knowledge Solutions operates in a large and underpenetrated opportunity, with a total addressable market of $222 billion, while the company reported revenues of $315 million in FY25. This gap underscores significant headroom for growth, which the brokerage believes will be supported by cross-selling opportunities and access to a wider client base following the integration of AQuity.
On growth metrics, Avendus expects IKS to deliver a 16% dollar revenue CAGR over the next three years, driven by deeper client engagement, scalable delivery capabilities and steady demand for value-based healthcare services. Profitability is also projected to improve meaningfully, with EBITDA margins seen rising to 33.6% by FY28.
The brokerage further forecasts a robust 30% earnings CAGR, aided by operating leverage and a favourable business mix. Strong cash generation remains a key positive, with cash conversion estimated at around 85%, while return on equity is projected at 30%, reflecting efficient capital deployment.
Overall, Avendus believes Inventurus Knowledge Solutions is well positioned to capitalise on structural shifts in healthcare outsourcing, supported by differentiated pricing models, expanding client relationships and improving financial metrics.
Disclaimer: This article is for informational purposes only. The views expressed are those of the brokerage and do not constitute investment advice or a recommendation to buy or sell the stock.
