Share price of this hospital company has zoomed over 100% in 5 months

Shares of Global Health, which operates Medanta Hospitals, hit a record high of Rs 1,446.75 as they rallied 14 per cent on the BSE in Monday's intraday trade in an otherwise weak market. In the past five months, the stock price of the company has more-than-doubled, zooming 114 per cent. In comparison, the S&P BSE Sensex was down 0.26 per cent at 71,412 at 11:35 am.

The stock is trading higher for a third straight day, surging 17 per cent during the period, after the company delivered a strong quarterly performance in the October-December quarter (Q3FY24) primarily driven by growth in patient volumes. The company is one of the largest private multi-specialty tertiary care providers operating in the North and East regions of India.

For Q3FY24, Global Health reported a strong 53 per cent year-on-year (Y-o-Y) rise in consolidated net profit to Rs 123.54 crore, while its revenue from operations grew by 19.91 per cent to Rs 832.60 crore.

Earnings before interest, tax, depreciation, and amortisation (ebitda) margins improved by 305 bps from 24.3 per cent in Q3FY23 to 27.4 per cent in Q3FY24.

Average Occupied bed days increased by 15 per cent Y-o-Y, representing an average occupancy of 64 per cent in Q3FY24. Average revenue per operating bed (ARPOB) grew by 4 per cent Y-o-Y to Rs 60,571 primarily driven by increase in realisation at the Gurugram unit, the company said.

In Q3FY24, both matured and developing units delivered robust revenue growth of 17 per cent and 33 per cent Y-o-Y, respectively. This growth was primarily driven by increased in-patient volume and improved realisation, the management said.

Motilal Oswal Financial Services (MOFSL) expects 28 per cent earnings CAGR over FY23-26, factoring faster scale-up of newer hospitals and better visibility to add new sites (Noida/South Delhi/Indore) factoring in faster utilisation of beds in developing hospitals, better operational efficiency across mature as well as developing hospitals, and the advantage of introducing new indications at the Gurugram facility.

"Interestingly, Medanta is on path to achieve our expected FY25 financial performance in FY24 itself. Further, it continues to pursue initiatives not only to increase bed capacity, but also augment clinical resources (added 160/500 doctors/nurses over the past one year). This approach aims to meet the growing demand across various sites and incorporate new medical indications," MOFSL had said in a stock update.