Narayana Hrudayalaya up 3% on 3.3-acre Bengaluru land buy for expansion

Narayana Hrudayalaya shares gained 2.8 per cent on BSE, logging an intra-day high at ₹1,879 per share. At 10:46 AM, Narayana Hrudayalaya’s share price was trading 2.15 per cent higher at ₹1,866.8 per share. In comparison, the BSE Sensex was up 0.32 per cent at 83,081.18.

 

In a year, Narayana Hrudayalaya shares have gained around 28 per cent as compared to the Sensex’s rise of 11.2 per cent.

 

The buying on the counter came after the company informed stock exchanges that it has purchased an immovable property in Bengaluru as part of its business expansion plans.

 

In a filing, the company said the asset comprises land measuring about 3.3 acres, along with buildings and structures of around 36,475.96 sq metres, located in the southern part of Bengaluru at Electronic City.

 

The company said the property will be used for software development, setting up a Global Capability Center (GCC), and to support its business expansion plans.  ALSO READ | AU SFB shares fall 7% after Haryana govt de-empanelment; analysts weigh 

That apart, in Q3, Narayana Hrudayalaya reported a consolidated net profit of ₹126.78 crore, as compared to ₹193.05 crore a year ago. Its revenue from operations stood at ₹2,15.17 crore, as compared to ₹1,334.59 crore a year ago. 

 

PL Capital, in its post Q3 results report, said that Narayana Hrudayalaya reported a strong operational performance, with Earnings before interest, tax, depreciation and amortisation (Ebitda) rising 44 per cent year-on-year (Y-o-Y) to ₹440 crore, adjusted for one-time costs. The figure was 7 per cent above PL Capital’s estimates, driven by robust performance across its India and Cayman operations, along with the consolidation of its UK subsidiary.

 

The Cayman business posted profitability of ₹188 crore, up 42 per cent Y-o-Y, while the India business reported healthy Ebitda growth of around 24 per cent Y-o-Y (adjusted for NHIC losses).  ALSO READ | Cohance Lifesciences share price jumps over 8% after block deal 

Management reiterated its aggressive capex plans and commitment to increasing throughput over the next three to four years through debottlenecking, refurbishment, and improving bed mix. In the medium term, the company plans to add over 1,500 beds in the next three years via greenfield and brownfield expansions across Bengaluru, Kolkata, and Raipur.

 

Factoring in the strong performance, PL Capital has raised its FY27E and FY28E Ebitda estimates by 6–7 per cent. The brokerage has maintained a ‘Buy’ rating with a target price of ₹2,150 per share, valuing the India business at 23x FY28E EV/EBITDA and international operations at 15x FY28E EV/Ebitda.