Narayana Hrudayalaya hits new high in weak market; soars 38% so far in CY25

Narayana Hrudayalaya share price hit a record high of ₹1,754 per share on the BSE on Wednesday, as it rallied 4 per cent in the intraday trade in an otherwise weak market, on a healthy business outlook. The stock price of the hospital chain surpassed its previous high of ₹1,725, which it touched on March 24, 2025. In comparison, the BSE Sensex was down 0.40 per cent at 73,930 at 12:43 PM.

 

Narayana Hrudayalaya is one of the leading healthcare service providers in India, operating a chain of multispecialty, tertiary, and primary healthcare facilities. The company has a network of 19 hospitals and 2 heart centres across India, along with overseas presence at Cayman Islands, with over 5,900 operational beds and a capacity of over 6,300 beds.

 

 

Thus far in calendar year 2025, Narayana Hrudayalaya has outperformed the market by surging 38 per cent on the back of strong earnings. In comparison, the BSE Sensex is down 6 per cent and the BSE Healthcare index 13 per cent during the same period.

 

After a strong second quarter, Narayana Hrudayalaya delivered a steady performance across business units, in the third quarter of the fiscal year (Q3FY25), with a healthy year-on-year (Y-o-Y) growth, aided by strong growth in realisations.  ALSO READ | Pharma shares slide up to 10% as Trump to announce pharma tariffs 'soon'

 

The company's management remains confident that the new hospital will become a strong engine of growth in Cayman over the next few years. NH Integrated Care, the company's subsidiary, meanwhile, delivered another strong quarter of increased patient transactions and revenue growth.

 

Narayana Hrudayalaya has two primary healthcare and wellness oriented subsidiaries -- NH Integrated Care Private Limited (NHIC) and Narayana Health Insurance Limited (NHIL). NHIC operates on a subscription-based model, providing an end-to-end integrated health care, primary care experience to its customers. NHIL provides a comprehensive health insurance plan combined with an integrated care program.

 

With the greater maturity mix in hospitals, steady performance of its flagship hospitals in India and better profitability of new hospitals (SRCC, Gurugram, Dharamshala), the company's financial position remains solidified, according to analysts at Anand Rathi Share and Stock Broker.

 

Recently, Narayana Hrudayalaya launched 'Narayana Aarogyam', a preventive health screening initiative, on a pilot basis with advanced diagnostic tools tailored for working professionals to get quick health checkups offered by the company and the same is already operative.

 

Going ahead, between FY2026 and FY2029, Narayana Hrudayalaya is expected to continue to incur sizable capex towards commencement of construction of its new greenfield projects in Kolkata and Bengaluru. The capex is expected to be funded through a mix of debt and internal accruals.  ALSO READ | HDFC Bank, Trent: 10 stocks you can buy to create a resilient portfolio

 

Given the sizable planned capex, the Group's debt metrics are expected to witness some moderation in the near term. However, given the Group's strong earnings capability, debt metrics are expected to remain healthy despite the likely incremental debt to be availed, according to rating agency ICRA.

 

There have been significant structural changes in the healthcare sector post-Covid, including heightened health awareness, greater insurance coverage, growing acceptance of elective surgeries, and price increases. Supported by long-term structural growth factors, renewed momentum from PMJAY, and increased government focus on the healthcare sector, the Indian hospital sector is projected to grow at a compound annual growth rate (CAGR) of 10-11 per cent over the next 3-5 years, CareEdge Ratings said.

 

Key demand drivers include the rise in lifestyle-related diseases, growing medical tourism, increasing incomes, and demographic changes. With limited government capital expenditure and a lack of infrastructure, the private sector is expected to experience accelerated growth in the years to come, the rating agency said.

 

CareEdge Ratings forecasts that corporate hospital chains in its coverage will achieve approximately 10-12 per cent Y-o-Y sales growth in fiscal 2025 & 2026, driven by a 5-6 per cent increase in Average Revenue Per Occupied Bed (ARPOB), a 100-200 basis point improvement in occupancy, and rise in new bed additions.  ALSO READ | 5 pharma stocks that you should stay away from given their tech charts

 

"Despite accruing additional debt to finance expansion and significant capital expenditures, we anticipate that net leverage (net debt to Ebitda) for the sector to remain approximately 1x in the near to medium term, bolstered by increased ARPOB and enhanced occupancy rates," the rating agency said.