Antique initiates with 'Buy' on Artemis Medicare; sees 45% stock upside

Antique initiated coverage on Artemis Medicare with a 'Buy' rating and a target price of ₹340, a potential upside of 45 per cent from Wednesday's close

Shares of Artemis Medicare Services Ltd. rose over 4 per cent on Thursday after Antique Stock Broking initiated coverage, citing increased volumes and improved profitability accruing in a short span of time. 

 

The brokerage has initiated coverage on Artemis Medicare with a 'Buy' rating and a target price of ₹340, a potential upside of 45 per cent from Wednesday's close. 

 

Artemis Medicare operates a 700-bed multi-specialty hospital in Gurgaon, accredited by Joint Commission International (JCI) and the National Accreditation Board for Hospitals and Healthcare Providers (NABH). The brokerage highlighted that the facility remains a preferred destination for international patients.

 

 

Over the next three to four years, the company plans to add around 1,300 beds - 300 in Gurgaon, 300 in Raipur and 650 in South Delhi - taking the total capacity to about 2,200 beds. Apart from its core hospital business, Artemis Medicare operates Artemis Cardiac Care, a joint venture with Philips with six centres across India, Daffodils Mother and Child Care Hospitals, and Artemis Lite specialty clinics for short-stay surgeries.

 

Antique expects operating leverage to drive higher profitability as scale improves. It estimates the Gurgaon facility’s margin to expand by 350 basis points (Bps) to 21 per cent over FY25–FY28, while Ebitda per bed is projected to clock a 13 per cent compound annual growth rate to reach ₹7 million. 

 

At the consolidated level, the brokerage expects revenue, Ebitda and profit after tax to grow at 23 per cent, 31 per cent and 34 per cent, respectively, with margins expanding by 330 bps to around 20 per cent over the same period.

 

The brokerage said brownfield bed additions in Gurgaon are likely to see a faster ramp-up in volumes and profitability. It also noted that the company has launched new programmes, including heart and lung transplants in collaboration with KIMS Hyderabad, a longevity clinic based on gene sequencing, geriatric medicine services with specialists from AIIMS, and new nephrology and gastroenterology units at the Gurgaon facility.  CHECK Stock Market LIVE Updates

Artemis Medicare share price history

The company's stock rose as much as 4.49 per cent during the day to ₹246 per share, the biggest intraday gain since February 9 this year. The stock pared gains to trade 3.1 per cent higher at ₹242 apiece, compared to a 0.39 per cent decline in Nifty 50 as of 11:07 AM. 

 

Shares of the company rose to the highest level since February 3 and currently trade at 3.2 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 10 per cent this year, compared to a 1 per cent decline in the benchmark Nifty 50. Artemis Medicare has a total market capitalisation of ₹3,860.29 crore. 

 

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