Medanta hits highest level since listing; stock surges 13% in 2 days

Shares of Global Health, which operates hospitals under Medanta brand, hit a record high of Rs 518.55 as they gained 3 per cent on the BSE in Friday’s intra-day trade in an otherwise subdued market. In past two days, the stock of the company engaged in hospital business rallied 13 per cent. In comparison, the S&P BSE Sensex was down 0.21 per cent at 61,189 at 09:37 AM.

Medanta was trading at its highest level since its listing on November 16, 2022. It surpassed its previous high of Rs 487.75, touched on November 24. With past two days surge, the stock currently trades 54 per cent higher against its issue price of Rs 336 per share.

Founded by renowned cardiovascular and cardiothoracic surgeon Dr Naresh Trehan, Global Health is one of the largest private multispeciality tertiary care providers operating in the north and east regions of India. Under the ‘Medanta brand’, it operates five hospitals in five cities.

Medanta provides healthcare services in over 30 medical specialties and engages over 1,400 doctors led by experienced department heads and, spanning an area of 4.7 million sq ft, Medanta’s operational hospitals have 2,571 installed beds.

On Monday, February 13, Medanta announced that it is entering into a binding term sheet with Elinquisite Real Estate Private Limited to launch a new, 300-bed hospital in Indore under operations and management (O&M) arrangement.

The new hospital will have ~100 critical care beds, ~15 operation theatres, cath labs and, will also offer day care services for chemotherapy and radiation. The hospital is expected to commence operations in FY2027.

Meanwhile, for October-December quarter (Q3FY23), Medanta reported its highest-ever quarterly total income of Rs 706.2 crore; growth of 19.0 per cent year-on-year (YoY).

For first nine months (April to December) of financial year 2022-23 (9MFY23), Medanta’s consolidated total income grew 21.2 per cent year-on-year (YoY) to Rs 2,027 crore. The growth was driven by combination of factors such as higher inpatient volumes, increase in bed occupied days, and change in specialty and payor mix. EBITDA (earnings before interest, taxes, depreciation, and amortization) was Rs 485.6 crore; growth of 22.1 per cent YoY. EBITDA margins remained strong at 24.0 per cent. Profit after tax was up 26 per cent YoY to Rs 225 crore.

Average beds occupied (ARPOB) grew by 8.5 per cent YoY to Rs 58,494 in 9MFY23 driven by increased share of complex specialties. In-patients count increased by 31.9 per cent; out-patients count increased by 12.3 per cent, Medanta said.