Aster DM Quality Care Ltd. share price target

Aster’s merger with QCIL was completed in Jul’26. Both entities reported strong performance, with Aster’s revenue / EBITDA growing 21.6%/27.5% YoY led by traction and improved profitability in new units.

Combined entity to add 4,445 beds over 45 years, with 49% in the next 2 years and 44% via brownfield expansion. Increasing CONGO mix driving ARPOB and margins ASTER DM Healthcare's (ASTERDM) Q4 consolidated EBITDA grew 26% YoY to Rs2.34bn, 12% above our estimates; aided by strong performance across clusters. The QCIL ramp up has been on track with 23% YoY EBIDTA growth for Q4 and 24% YoY for FY26. ASTERDM's board has recently approved merger with Quality Care (QCIL), making it the third largest healthcare chain by revenue and bed capacity in India. We...

increased sharply over the last 3 years (29% CAGR over FY22-25). Our FY2627E EBITDA estimate broadly unchanged. We estimate 24% EBITDA CAGR over FY25-27E aided by scale-up in margins, healthy ARPOB and bed additions. ASTER DM's board has recently approved merger with Quality care (QCIL) that...

Aster DM Healthcare’s (Aster) Q3FY23 performance exceeded our expectations on revenue front, largely driven by strong growth in GCC hospitals and pharmacies. Consolidated revenue grew 20.5% YoY to Rs31.9bn (I-Sec: Rs28.1bn). GCC hospitals posted healthy growth of 22% YoY.

Aster DM Healthcare’s (Aster) Q2FY23 performance was below our estimates on the
profitability front. This was mainly due to depressed margins in the GCC clinics business and losses incurred by the newly commissioned GCC hospitals.

Aster DM Healthcare’s (Aster) Q1FY23 performance was below our estimates on profitability front.

Revenue break-up 9MFY22: hospitals: 56%, pharmacies: 21%, clinics: 23% with GCC & India contributing 76% & 24% of revenues, respectively Q3FY22 Results: Good numbers driven by significant improvement in footfalls...

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Strong RoCE in GCC despite aggressive expansion Aster derives ~81% of revenues from GCC countries. In the last six years, it expanded its hospitals, clinics, pharmacy count by ~2x. However, despite aggressive expansion, RoCE stayed healthy [hospitals- 12% (established hospitals- 25%), clinics- 21% and pharmacies- 44%] due to 1) asset light model, 2) integrated business model, 3) faster occupancy owing to strong brand equity, 4) healthy ARPOB and 5) targeted strategy. We believe RoCE would improve further due to continuing improvement in occupancy,...

Q4FY20 revenues grew 4.6% YoY to | 2301 crore. EBITDA margins expanded 163 bps YoY to 17.6% mainly due to lower other expenses on Ind-AS adjustment. Subsequent EBITDA grew 15.3% YoY to | 404 crore. However, PAT fell 37.4% YoY to | 131 crore. Delta vis-a-vis EBITDA was mainly due to higher interest & depreciation expenses due to Ind-AS 116....