HSBC has maintained a Reduce rating on Narayana Hrudayalaya with a target price of ₹1,220, even as the company posted an operational beat in Q4FY25, mainly driven by stronger-than-expected performance from its new Cayman Islands unit.
The brokerage highlighted that while the Q4 numbers exceeded their expectations, the key driver was the Cayman facility, which ramped up ahead of schedule. However, HSBC remained cautious on the medium-term growth outlook, pointing out that the benefits from Narayana’s ongoing bed expansion in India are still 3–4 years away.
The firm believes that while the current momentum is encouraging, valuations already factor in much of the near-term optimism, and the long gestation period for Indian operations tempers their overall outlook.
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