Park Medi World eyed at ₹350 as North India expansion accelerates
Choice Broking has reiterated its buy rating on Park Medi World, citing a scalable cluster model and targeted acquisitions that project robust earnings growth despite a near-doubling of the stock price in six months.
Choice Institutional Equities has maintained its buy rating on Park Medi World with a target price of ₹350, pointing to capacity expansion and disciplined capital allocation as primary growth drivers.
The endorsement arrives as the stock trades at ₹290, having already surged 92% over the past six months and 79% above its December issue price. For market participants, the central question is whether the hospital operator's aggressive growth strategy can justify its current valuation and sustain momentum.
A core element of the investment thesis relies on unlocking constrained capacity in high-demand markets. The company's 225-bed Palam Vihar facility in Gurugram operated at 86% occupancy in FY26, generating nearly ₹25 crore in revenue. To capture unmet demand, a 100-bed extension costing around ₹25 crore is scheduled to open in November 2026.
Targeted acquisitions form the second pillar of this strategy. The 330-bed Medicity Hospital in Rudrapur was purchased for ₹1.77 billion and is expected to begin operations by the end of next month. Management targets ₹1 billion in first-year revenue alongside 20% EBITDA margins, anticipating further margin expansion as occupancy and super-speciality mixes improve.
"The cluster-based operating model remains a key differentiator, enabling neighbouring hospitals to share doctors, specialised equipment and operational resources, improving utilisation, recruitment and overall operating efficiency," Choice noted. Total capacity is projected to reach roughly 5,590 beds by March 2028, moving toward a long-term goal of 10,000 beds by FY33.
These operational drivers translate into significant earnings growth on the brokerage's models. Revenue is forecast to climb from ₹16.8 billion in FY26 to ₹39.4 billion by FY29. EBITDA is expected to more than double from ₹4.4 billion to ₹10.4 billion, while margins remain stable at approximately 26.5% throughout the expansion phase. Return on capital employed is projected to hit 25.4% by FY29.
"We continue to value the company at 18x EV/EBITDA on FY28E and hence maintain our 'BUY' rating with a target price of INR 350," Choice concluded.
