Krishna Institute of Medical Sciences Ltd. share price target

Krishna Institute of Medical Sciences’ (KIMS) delivered robust performance in Q4FY25 with revenue/EBITDA/PAT surging 26%/29%/49%, respectively. Existing clusters of AP/ Telangana grew 19%/23% while EBITDA growth was much faster at 37%/34% YoY, respectively.

Commissioned 200-bed multispecialty hospital in Guntur (Q3FY25) under O&M model.

? 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.