Indraprastha Medical spurts 20% on heavy volumes; stock hits record high

Till 02:33 PM; a combined 6.22 million equity shares of Indraprastha Medical representing 6.8 per cent of total equity of the company changed hands on the NSE and BSE.

Indraprastha Medical Corporation share price today

 

Shares of Indraprastha Medical Corporation hit an all-time high of ₹573.80, and were locked at the 20 per cent upper circuit on the BSE in Tuesday’s intra-day trade backed by heavy volumes. The stock price of the hospital company surpassed its previous high of ₹571.95 touched on January 8, 2025. In the past one week, the stock has rallied 29 per cent.

 

As of 02:33 PM on Tuesday, the average trading volumes at the counter had jumped multiple-fold with a combined 6.22 million equity shares representing 6.8 per cent of total equity of the company having changed hands on the NSE and BSE. There were pending buy orders for combined buy orders for around 200,000 equity shares on these exchanges.

 

 

Why smallcap hospital stock in focus?

 

The growing health insurance market is creating new opportunities for healthcare providers. With the continuous rise in health insurance coverage, there is significant potential for further expansion. Increasing awareness of health insurance benefits and affordability is making quality healthcare accessible to more people, thereby boosting the demand for medical services.

 

According to media reports, the Union health ministry has revised rates for ~2000 medical procedures under the Central Government Health Services (CGHS) and is expected to come into effect from 13 October. 

 

Under these changes, a multi-dimensional rate structure has been created based on 4 different parameters (earlier the rates were the same across OPD and IPD consultation; cities and wards). Any consultation at NABH or NABL accredited healthcare organisation (HCO) would be treated at a standard base rate; for non-accredited HCOs it will be 15 per cent less than accredited hospitals and for CGHS empanelled super speciality hospitals (with more than 200 beds) it will be 15 per cent higher than the base rate. All the HCOs have to submit their acceptance of these new terms and conditions before October 13 or else they would be required to seek fresh empanelment with the CGHS.

 

Hospitals with high CGHS patient volume and high accreditation standards are likely to see their valuations rise, supported by better margins and more stable cash flows. Such targets may be prime considerations for strategic investors for an acquisition, joint venture, or minority investments to secure a steady government linked revenue stream. Smaller or perhaps, not-so-well-accredited hospitals, or hospitals limited to a region, may face consolidation pressure, creating avenues for sector consolidation, bolt-on acquisition, and platform-building by larger chains, according to Kunal Gala, Partner, Deal Value Creation, BDO India.

 

Meanwhile, the Government of India held 26 per cent stake in Indraprastha Medical Corporation. Analysts at Anand Rathi Share and Stock Broker are of the view, that the (part or entire) stake would be sold by the Delhi government in the medium term, which should result in re-rating the stock as this would open up avenues for further growth at the present and future locations.

 

Management intends to more than double bed capacity at the present site from 802 now to +1,800 in the next few years (1st phase of ~350 beds by mid CY28). Further, with the new Government coming in Delhi post the recent elections should augur well for the company as it can expedite the Delhi government’s stake sale to the promoters (could be an option value), the brokerage firm said in June 2025 management meet update. 

 

“The stock is our top Buy in the space with a ₹590 target price (16x FY27e EBITDA) as we believe the (part or entire) stake likely to be sold by the Delhi government in the medium term, which should result in a re-rating for the name-opening avenues for further growth at old and new locations,” the brokerage firm said.