4 hrs ago
PL Capital Recommends Fortis Healthcare Shares, Sets ₹1,050 Target
PL Capital is a brokerage that believes Fortis Healthcare’s shares could rise.
It gave the stock a Buy rating and a target price of ₹1,050.
The shares were trading at ₹910.21 when the article reported the recommendation.
Fortis’s hospitals have added beds while keeping occupancy at 68%-69%.
The company’s diagnostics business is also showing signs of improvement.
The brokerage expects profits measured by EBITDA to grow strongly through FY28.
A Delhi High Court has ordered an auditor to examine some historical shareholding changes.
The brokerage said this review should not affect Fortis’s expansion or acquisition plans.
PL Capital retained its Buy rating on Fortis Healthcare with a ₹1,050 per-share target, implying nearly 16% upside from the cited market price.
Fortis shares traded 0.21% higher at ₹910.21 on the BSE on September 8, with a market capitalisation of ₹68,716.29 crore.
The brokerage said a Delhi High Court-ordered forensic audit would examine historical shareholding changes and would not affect Fortis’s stated expansion or acquisition plans.
Hospital occupancy remained at 68%-69% despite a 17% increase in operating beds, while the diagnostics business showed signs of recovery.
PL Capital expects Fortis’s EBITDA, excluding employee stock options, to grow at a 20% compound annual rate between FY26 and FY28.
- Who
- PL Capital issued the recommendation, concerning Fortis Healthcare Limited; the Delhi High Court also directed an auditor’s appointment.
- What
- PL Capital maintained a Buy rating and set a ₹1,050 target price for Fortis Healthcare shares.
- Where
- Fortis Healthcare is headquartered in Gurgaon, and its shares were reported on the BSE.
- When
- The shares were discussed on Tuesday, September 8; the article also cites a recent Delhi High Court direction and forecasts for FY26-FY28.
- Why
- PL Capital cited hospital growth, sustained occupancy, improving diagnostics realisations, margin expansion, and expected EBITDA growth.
Key facts
- Recommendation
- Buy rating maintained by PL Capital
- Target price
- ₹1,050 per share
- Cited market price
- ₹910.21 on the BSE, up 0.21%
- Hospital occupancy
- 68%-69%
- Operating-bed growth
- 17% over the past year
- Expected EBITDA growth
- 20% CAGR excluding ESOP between FY26 and FY28
- Promoter stake
- 31.17%
- Institutional ownership
- FIIs: 25.2%; mutual funds: 25.81%
Quotes
PL Capital
Brokerage covering Fortis Healthcare
“We expect FORH to clock 20% EBITDA CAGR ex ESOP over FY26-28E. At CMP, the stock is trading at 24.4x EV/EBITDA on FY28E, adjusted for Agilus stake and ESOP.”
livemint.com
“have no impact on FORH’s capex, brownfield expansion or M&A plans”
livemint.com
Sources
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