Global Health's March quarter earnings surprised positively driven by better Ebitda margins and higher other income coupled with lower tax rate. GQG Partners, Oaktree Capital and Blackrock Financial would be among investors, which would meet the management of Global Health (Medanta) next week. Blackrock Financial, Wellington Management, Allspring Global, Putnam Investments, Loomis Sayles and Redwood Investments will have one-to-one meet will the Global Health on Monday in Boston, US.
On Tuesday, the Global Health management will meet Oaktree Capital, Baron Capital, GQG partners and State Street in New York. This would also be one-to-one meet with investors, the company told stock exchanges on Friday.
Shares of GQG Partners closed Friday's session at Rs 584.90, down 0.34 per cent. Global Health has public holding of 66.92 per cent at the end of March quarter. It had 47 foreign portfolio investors (Category I) and two others in the category II. They included Polar Capital Funds PLC - Healthcare Opportunities and Government Pension Fund Global.
Analysts noted that Global Health's March quarter earnings surprised positively driven by better Ebitda margins and higher other income coupled with lower tax rate.
"We see new hospitals contribute 33 per cent to revenues in FY23 (vs 10 per cent in FY19). The new hospitals have ramped-up exceptionally well lending a strong support to overall earnings growth which we expect to sustain. They continue to optically lower the overall ARPOB and occupancy level over the next two years as we see addition of nearly 600 beds," said JM Financial while suggesting a target of Rs 665 on the stock.
ARPOB refers to average revenue per occupied bed.
This brokerage increased its valuation multiple on the stock to 20 times from 19 times earlier this week, given the robust cashflow, continuing earnings momentum and scope for potential inorganic acquisitions.
"Despite slightly lower volumes in matured hospitals, Medanta delivered a largely in-line Ebitda in 4QFY23, led by strength in newer hospitals. Aided by a sustained favorable payor mix, performance in Lucknow and Patna
continued to surprise positively. We expect the company to report a solid Ebitda CAGR of 18 per cent over FY2023-26E, driven by continued strength in Gurugram and Lucknow, coupled with increased traction in Patna. We retain ADD on Medanta, with a raised FV of Rs 620," Kotak Institutional Equities said.