Healthcare stock Park Medi World (PARKHOSP) is well positioned to benefit from India's structural shortage of hospital beds, improving reimbursement dynamics, and accelerating healthcare demand in Tier II markets, according to Nuvama, which has initiated coverage on the stock.
Citing improving balance sheet quality and visible growth drivers, the brokerage has initiated coverage with a ‘Buy' rating and a target price of ₹280, implying a potential upside of around 37% from current levels.
Nuvama noted that India continues to remain structurally under-bedded, with approximately 1.5 hospital beds per 1,000 people, significantly below the World Health Organization's benchmark of around 3 beds per 1,000 people. The shortage is particularly acute in North India, where healthcare infrastructure outside major metropolitan areas remains limited.
“India is structurally under-bedded with about 1.5 beds per 1,000 persons versus WHO's benchmark of around 3, with the gap most pronounced in North India,” Nuvama said. The brokerage further highlighted that while hospital capacity additions in recent years have largely been concentrated in metros and Tier I cities, Tier II and Tier III regions continue to remain underserved, creating a strong growth opportunity for healthcare providers expanding in these markets.
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