Shares of Park Medi World surged 10% despite weakness in the broader market after Emkay Research initiated coverage of the hospital chain with a ‘Buy’ rating and a target price of ₹350, implying around 35% upside from current levels. Park Medi World share price today closed at 278.25 apiece on the BSE.
According to Emkay Research, Park Medi World has built a differentiated business model that combines quality healthcare with affordability, enabling it to serve the underserved mass market. The brokerage noted that the company’s lean cost structure and high asset utilisation create a virtuous cycle of profitability and superior return ratios.
Park has one of the lowest capital expenditure requirements per bed in the industry, at around ₹3.2 million. Its efficient hospital design, higher patient volumes and cluster-based operating model enable better utilisation of assets and clinical resources while maintaining healthy margins.
Acquisition-led expansion proving successful
Emkay highlighted the management’s strong track record of execution, particularly in turning around underperforming and distressed healthcare assets. Acquired hospitals contributed nearly 62% of the company’s FY26 EBITDA, underscoring the success of its acquisition-led growth strategy.
The brokerage believes the company’s ability to scale rapidly without compromising capital discipline provides a significant competitive advantage. Park has already identified around 2,200 beds for future expansion, equivalent to nearly 60% of its FY26 capacity.
Expansion into new markets to fuel next leg of growth
The brokerage expects Park to benefit from its planned expansion into underpenetrated and high-demand markets such as Uttar Pradesh. While the company has historically followed an ownership-led model, its proposed asset-light operations and management (O&M) strategy in new geographies could reduce execution risks and improve returns.
Emkay forecasts revenue and EBITDA CAGR of 24% and 23%, respectively, between FY26 and FY29, driven by capacity additions, operating leverage, improving payer mix and benefits from government healthcare pricing revisions.
Strong balance sheet supports re-rating
The brokerage also highlighted Park’s healthy financial position, including a net cash balance of approximately ₹200 crore, robust operating cash flow generation and an improving working capital cycle.
Emkay values the company at 21x Mar-28E EV/EBITDA, in line with sector averages, and believes the combination of affordability, scalability and disciplined expansion could support a re-rating of the stock over the medium term.
Key risks include delays in ramping up new facilities and slower collections from government healthcare schemes, the brokerage said.
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