On Thursday, brokerage firm CLSA initiated coverage on Global Health (NS:GLOH) Limited (MEDANTA:IN) stock with a Hold (3) rating and a price target of INR1,040.00. Global Health, also known as Medanta, is recognized as a leading provider of tertiary care services. The company's strategy focuses on delivering specialized care in densely populated but underserved regions.
Medanta boasts a significant presence in North and East India, operating a network of hospitals in Gurugram, Indore, Ranchi, Lucknow, Patna, and Noida. Over the past 15 years, Medanta has expanded its bed capacity to approximately 2,890.
The company has plans to further increase its capacity by adding around 1,100 beds within the next three years. This expansion is expected to be financed through internal accruals.
The brokerage firm anticipates an improvement in margins for Medanta, which is projected to lead to a strong compound annual growth rate (CAGR) in earnings of 18% from the fiscal year 2025 to 2027. The Hold rating reflects a position where the firm advises investors to maintain their current investment level in the stock, without suggesting further buying or selling at this time.
CLSA's price target of INR1,040.00 is based on a discounted cash flow (DCF) analysis. This valuation method considers the present value of Medanta's projected future cash flows to arrive at an estimated fair value for the stock. The DCF approach is commonly used in the evaluation of investment opportunities and company valuations.
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