A domestic brokerage firm has initiated coverage on hospital stock Yatharth Hospital & Trauma Centre(NSE: YATHARTH) and has given a big target.
On the last trading day, the stock closed at Rs 569.70 (Yatharth Hospital Share Price). Its IPO came in July 2023 at Rs 300.
In its report, the brokerage said that this company has focused on the under-served market.
Medical costs in remote areas of Noida are about 10% lower than in the medical hubs of Gurugram and NCR.
People have started understanding this and the crowd is gradually shifting.
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Capacity Of Yatharth Hospital
Yatharth Hospital in Noida started with 250 beds and based on the first quarter it has increased to 1605 beds.
There is a plan to take the total bed count beyond 2800 in the next 3-4 years. Currently, its occupancy is 61%.
In such a situation, there is space for growth here too. By FY27, occupancy will reach 65%, and bed capacity expansion will lead to an increase of Rs 500 crore in sales.
Yatharth Hospital’s Growth Has Been Strong
The company’s topline i.e. sales grew at 43% CAGR between FY21-24.
This growth is expected to be maintained due to an increase in occupancy and number of beds and ARPOB i.e. average revenue per occupied bed.
Operates mainly in the Northern States. Its growth outlook is strong due to the opening of hospitals near high-population-density areas.
Yatharth Hospital Share Price Target
Keeping in mind all the factors, the brokerage has started coverage on the shares of Yatharth Hospital and has given the first big target of Rs 827.
The target of this share is more than 45-46%. On September 25, the stock also made a life high of Rs 599.
Its stock rose 6% in the past week and has gained 10 % over a month. In such a situation, long-term investors can wait for any correction.
Quick Fact
| Company name | Yatharth Hospital |
|---|---|
| IPO price | ₹300 |
| Current occupancy | 61% |
| Total beds (current) | 1605 beds |
| Planned bed count | Beyond 2800 beds (next 3-4 years) |
| Expected occupancy (FY27) | 65% |
| Sales growth (FY21-24) | 43% CAGR |
| Expansion impact | ₹500 crore increase in sales by FY27 |
| Possible target price | ₹827 |
| Price on September 27 | ₹569.70 |
| Growth in last month | 10% increase |
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