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HDFC Securities
Indraprastha
Medi (Buy)
CMP: ₹65.05
Target: ₹74-84
Indraprastha Medical Corporation Ltd (IMCL) was incorporated in March 1988 and was set up by the Apollo Hospitals Group jointly with Government of National Capital Territory of Delhi (NCT). Investment rationale: a) Managed by Apollo Group Hospitals and has an asset-light business model; b) IMCL focuses on curing lifestyle diseases and has the busiest transplant centre in the world; c) Demographics, changing lifestyles and rising insurance penetration could lead to sustained growth in revenues and profits.
Risks and concerns: a) High competition; b) Litigation on free treatment to Delhi Government patients; c) High consultation charges can affect margins.
The outlook for the Indian healthcare industry looks positive owing to high growth rate in almost all its segments. Demand for life style diseases-related healthcare services is expected to keep growing over the medium term in India. IMCL is well equipped to benefit out of this growth.
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