Kotak Institutional Equities has initiated coverage on Dr. Agarwal’s Health Care with an ‘ADD’ rating and a target price of ₹425, citing strong growth potential driven by scale and strategic expansion.
The brokerage notes that Dr. Agarwal’s is India’s largest eye care hospital chain, with a 65% revenue mix from surgical procedures. The company’s rapid expansion trajectory is expected to continue, with a 2.3x increase in center count projected between FY24 and FY28.
However, Kotak expects the company to now be more selective in its acquisition strategy, which should contribute to improved return on invested capital (RoIC). Combined with the ongoing scale-up of recently added centers, Dr. Agarwal’s is forecast to clock a robust 23% CAGR in EBITDA and 27% CAGR in EPS over FY2024–28E.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
