Buy Krishna Institute of Medical Sciences, target price Rs 1450: Axis Securities

Axis Securities has buy call on Krishna Institute of Medical Sciences Ltd. with a target price of Rs 1450. The current market price of Krishna Institute of Medical Sciences is Rs 1236.25. Time period given by analyst is one year when Krishna Institute of Medical Sciences Ltd. price can reach defined target.

Krishna Institute of Medical Sciences Ltd., incorporated in the year 1973, is a Small Cap company (having a market cap of Rs 9817.81 Crore) operating in Hospitals & Allied Services sector.

Krishna Institute of Medical Sciences Ltd. key Products/Revenue Segments include Income from Hospitality, Pharmaceutical Products and Other Operating Revenue for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 500.85 Crore, up 31.62 % from last quarter Total Income of Rs 380.53 Crore and up 4.90 % from last year same quarter Total Income of Rs 477.45 Crore. Company reported net profit after tax of Rs 79.24 Crore in latest quarter.


Investment Rationale
KIMS’ matured assets are continuously facing lower occupancies due to market share loss from competitors from last 3 quarters. With the acquisition of Sunshine company is at path of inorganic growth. Further, the company has strong RoCE ~32% and zero net-debt due to its strong operating cash flow generation. Therefore, the brokerage recommends “BUY” with TP of Rs 1,450.