Buy Global Health, target price Rs 1,390: Axis Securities

Axis Securities has a buy call on Global Health with a target price of Rs 1,390. The current market price of Global Health is Rs 1222.3. Global Health, incorporated in 2004, is a Small Cap company with a market cap of Rs 32789.15 crore, operating in Hospitals & Allied Services sector.

Global Health's key products/revenue segments include Hospital Services, Pharmaceuticals and Other Operating Revenue for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 959.46 crore, down -1.57% from last quarter Total Income of Rs 974.77 crore and up 12.28% from last year same quarter Total Income of Rs 854.53 crore. The company has reported net profit after tax of Rs 142.86 crore in the latest quarter.

The company?s top management includes Dr.Naresh Trehan, Dr.Ravi Gupta, Mr.Rajan Bharti Mittal, Mr.Hari Shanker Bhartia, Mr.Vikram Singh Mehta, Mr.Pankaj Sahni, Mr.Venkatesh Ratnasami, Mr.Ravi Kant Jaipuria, Mr.Sunil Sachdeva, Ms.Praveen Mahajan, Dr.Naresh Trehan, Dr.Ravi Gupta, Mr.Rajan Bharti Mittal, Mr.Hari Shanker Bhartia, Mr.Vikram Singh Mehta, Mr.Pankaj Sahni, Mr.Venkatesh Ratnasami, Mr.Ravi Kant Jaipuria, Mr.Sunil Sachdeva, Dr.Naresh Trehan, Ms.Praveen Mahajan, Dr.Ravi Gupta, Mr.Rajan Bharti Mittal, Mr.Hari Shanker Bhartia, Mr.Vikram Singh Mehta, Mr.Pankaj Sahni, Mr.Venkatesh Ratnasami, Mr.Ravi Kant Jaipuria, Mr.Sunil Sachdeva, Ms.Praveen Mahajan, Dr.Naresh Trehan, Dr.Ravi Gupta, Mr.Rajan Bharti Mittal, Mr.Hari Shanker Bhartia, Mr.Vikram Singh Mehta, Mr.Pankaj Sahni, Mr.Venkatesh Ratnasami, Mr.Ravi Kant Jaipuria, Mr.Sunil Sachdeva, Ms.Praveen Mahajan. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 27 Crore shares outstanding.

Investment Rationale
Medanta remains focused on sustainable growth through operational excellence and capacity expansion. The Noida hospital is expected to begin operations within the next six months, contributing to future revenue growth. Management remains cautiously optimistic about ARPOB trends, highlighting a shift in case mix and improvements in the payer mix as key revenue drivers. With the anticipated improvements in ARPOB and the addition of incremental bed capacity, along with the Noida hospital now expected to be operational by the end of H1FY26E, Axis Securities recommends a BUY on the stock with a target price of Rs 1,390/share, implying an upside of 10% from the CMP.

Promoter/FII Holdings
Promoters held 33.03 per cent stake in the company as of 31-Dec-2024, while FIIs owned 12.48 per cent, DIIs 10.51 per cent.