Krishna Institute of Medical Sciences Ltd. share price target

? Krishna Institute of Medical Sciences (KIMS) reported a robust 29.7% y-o-y increase in total income to Rs 790.2 crore in 3Q FY25.
? Calculated blended occupancy rate (basis total bed capacity) was 50.7% in 3Q FY25, compared to 56.8% in 2Q FY25.

We maintain our BUY rating on the stock with a target price of Rs 710/share

Capacity expansion to drive growth

Krishna Institute of Medical Sciences’ (KIMS) Q3FY25 revenue was in-line while EBITDA and PAT were dragged by seasonality and its new Nashik hospitals. KIMS’ hospitals in Telangana/Andhra Pradesh grew a robust 26.1%/27.8% YoY. In Q3FY25, it commenced operations at its 325-bed hospital in Nashik (EBITDA loss of INR 50mn in Q3FY25), which is likely to break even by Q3FY26.

KIMS’s Q3FY25 revenues were ahead of Street/our estimates, while profitability lagged owing to certain write-offs in Maharashtra and AP clusters, and losses in the Nashik hospital.

Krishna Institute of Medical Sciences (KIMS) reported a robust 19.4% y-o-y increase in Total Income during 2QFY25, reaching Rs 782.3 crore.
Calculated blended occupancy rate (basis total bed capacity) was 49.7% in 2Q FY25, compared to 47.8% in 1Q FY25.

we maintain a BUY rating with a target price of Rs 615/share with a valuation of 21x EV/EBITDA for Sep 27E. The TP implies an upside potential of 10% from the CMP.

Capacity expansion to drive growth

Krishna Institute of Medical Sciences (KIMS) reported healthy y-o-y growth in 1Q FY25 with consolidated operating revenues increasing by 13.8% to Rs 693 crore.
Calculated blended occupancy rate (basis total bed capacity) was 49.8% in 1Q FY25, compared to 51.4% in 4Q FY24.

We have BUY on the stock

Capacity expansion to drive growth

Capacity expansion to drive growth

Krishna Institute of Medical Sciences’ (KIMS) Q4FY24 was below our expectations. One-off refurbishment charge of INR 100mn and higher depreciation of Sunshine Begumpet hospital led to this miss.

We have BUY on stock

The Q3FY24 occupancies revealed occupancy softness in KIMS matured hospitals, which constitute 60% of its Telangana and AP revenue. Recommendation BUY