Sell

In Q1FY26, Narayana Hrudayalaya delivered stable topline performance, though EBITDA margins were impacted by losses in the Integrated Care segment. The segment remains dilutive, with elevated costs weighing on consolidated profitability. With a pipeline of...

Narayana continues to deliver stable performance, driven by improved throughput rather than bed expansion. While the Indian business remained steady in FY25, the Cayman segment outperformed with 50% YoY sales growth and margin gains in Q4FY25. In our...

Global Health (Medanta)’s Q4FY25 print was in line with street/our estimates. The Developing portfolio continued its healthy trajectory, as OBD grew 36% YoY (favorable base) while ARPOBs fell 7% on higher contribution of schemebased patients in both—Lucknow and Patna units.

Elevated Valuations Dampen Strong Fundamentals

Tarson’s Q1FY25 standalone biz revenue and margins were impacted due to a slowdown in its domestic business (down ~4% YoY).

Quarterly Update Q4FY24

Vijaya Diagnostic Centre’s (Vijaya) Q2FY24 result was a beat vs our estimates driven by 18.3% YoY growth in non-covid business. Test volume growth remained healthy at 18.7% YoY. In Q2, it commercialised a new hub in Kolkata; the company is witnessing good traction and expects the hub to breakeven in next three quarters.

During Q1FY22, standalone revenue continued onto its growth trajectory rising 24.1% QoQ owing to higher sales achieved via its digital platform and partly aided by rising participation by the public in...

unsustainable rise in volume of patients and samples (all time high) We reinitiate coverage on DLPL stock with Sell' rating, previously kept Under Review'. 1QFY22 earnings were higher than our estimates solely driven by additional volumes, due to large number of patients in the second wave. Business in core portfolio grew 15% YoY given 1) all collection centers and labs resumed operations much earlier than expected 2) high revenue...

and 3) increased employee cost at 16% of sales (v/s 11% YoY and 13% QoQ). EBIT margin for diagnostic segment was 9% v/s 42% YoY. its profitability because of 1) lower gross margin at 53% (v/s 72% YoY) due to We remain negative on entire diagnostic chain due to possible structural...

We remain negative on the entire diagnostic chain with a belief of 1) premium players losing their market share to unorganized players, 2) B2B (40% of revenue) partners negotiating to partially offset their loss of profit, 3) Inability to hike prices causing lower realization level (Revenue/Patient) and 4) higher fixed costs (60-65% of operating cost for DLPL), new compliance expense and home collection of samples will lead to lower EBITDA margin. However even after increased estimate, we maintain SELL' recommendation but revised TP to Rs1,006 (from Rs895) on PE 40x of FY22E due to challenging...

Ascribe 9x EV/EBIDTA to FY22 EBIDTA and 1x EV/sales eachtopharmacyandAHLLbusinesses;significantlybelow consensusonvaluationgiventhesubparoperatingmetrics...

Reported lowest ever EBIT margin for diagnostic segment at 25% We reduce our earnings estimate by 56% and 42% for FY21-22E and downgrade THYROCARE to SELL (earlier HOLD) with a new TP of Rs307 (earlier Rs523) 18x PE on FY22E.We believe THYROCARE earnings to be significantly impacted due to 1) loss of core business due to COVID lockdown and low footfall till 1HFY21E 2) post lockdown to struggle for competitive market share 3) high operating expenses (to comply with COVID guidelines).Despite having a track record on asset optimization, EBITDA...

28-30% of revenue compared to last year in Q1FY21E and gradual recovery from Q2FY21E. As per the management, 60-65% of DLPL's total operating cost is fixed in nature and the new additional expense (cost of safety for...

Expansion plan to be led by mix of organic and acquisition route We met the management team of Metropolis Healthcare (METROHL) at their Global Reference(Mumbai) to understand their business outlook for next few fiscals. We believe METROHL will continue to focus on specialized test (low volume and high complexity), and increase its share in B2C business by partnering with local labs (with sizeable track record) and converting them into Metropolis-branded PSCs (Patient Service Centre). Its wide range of test menu and patient shift towards organized diagnostic player are some...