Prabhudas Lilladher has given Buy recommendation for Krishna Institute of Medical Sciences (KIMS IN) with a target price of Rs. 1550 in its research report issued on Aug 30, 2022
Prabhudas Lilladher’s research report on Krishna Institute of Medical Sciences (KIMS IN)
KIMS aims to create a cluster based investment approach in Karnataka and Maharashtra region. The company announced that it has entered into a definitive agreement to acquire majority (51%) stake in Nagpur-based SPANV Medisearch Life Sciences, that runs a Multi-Speciality Hospital in the name of Kingsway Hospitals. We see acquisition of Kingsway value accretive as the company’s experience in running multi-specialty hospitals and turning them around has been its distinct feature. KIMS has a lean cost structure and after partnering with local doctors outside AP & Telangana region, management remains confident of achieving faster break even and +25% OPM across new clusters over next 4-5 years. Further KIMS will be generating Rs 8-10bn of operating cash flow over FY22-24 which will aid to set up new units across Maharashtra and Karnataka region.