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KIMS Q4FY24 results review: Occupancy drops QoQ; margins to improve

Krishna Institute of Medical Sciences Ltd. Q4 operating performance impacted (Ebitda de-grew at 3% YoY to Rs 1.6 billion) from weak profitability in Telangana cluster and there were certain one offs.

Our FY25E/FY26E Ebitda estimates stands reduced by 6-7%. Though FY24 had muted Ebitda growth; new clinical talent hiring and addition of sub specialties across Telangana units will see ramp up in revenues and profitability from Q2 FY25.

Further KIMS is exploring greenfield expansion in Bangalore and Maharashtra. We expect 15% Ebitda compound annual growth rate over FY24-26E with healthy return ratios of ~20%.

Maintain ‘Buy’ rating with revised target price of Rs 2,100/share (earlier Rs 2,200) based on 23 times FY26E enterprise value/Ebitda.

Delay in break-even of upcoming new units will be key risk to our call.

For full report click. Prabhudas Lilladher

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