New Delhi [India], April 30: Shares of Park Medi World witnessed a strong uptick after Choice Institutional Equities initiated coverage with a ‘buy' rating and a target price of ₹320 per share, implying a potential upside of 36% from current levels.
The brokerage expects robust financial growth over the medium term, projecting revenue, EBITDA, and PAT to grow at a CAGR of 26.3%, 27.1%, and 34.6%, respectively, between FY26 and FY29. According to the report, this growth will be driven by aggressive capacity expansion supported by relatively low capital expenditure per bed, a shift towards higher-value treatments, and operational efficiencies such as optimisation of average length of stay (ALOS). Improvements in payor mix and benefits from revised CGHS rates are also expected to support margins.
On the operational front, Park Medi World recently announced the launch of a new multi-super specialty hospital in Panchkula on April 10, marking a significant expansion in Northern India. The facility is designed to enhance access to advanced tertiary and quaternary care across the Tricity region, including Haryana, Punjab, Himachal Pradesh, and Chandigarh, reducing dependency on metro cities for complex treatments.
The Panchkula unit is equipped with advanced diagnostics, modular operation theatres, and critical care infrastructure, offering specialties such as oncology, neurosciences, cardiology, orthopedics, and robotic-assisted surgeries.
This development complements the ongoing expansion of its Mohali facility. Together, these projects are expected to take the group's capacity in the region to around 850 beds. Currently, the company operates 16 hospitals with 3,960 beds and plans to scale up to 5,460 beds by March 2028.
Despite broader market weakness, the stock has gained 2.39% over the past week, 23.28% in a month, and 56% on a year-to-date basis, outperforming key indices.
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