Aster DM Healthcare's consolidated EBITDA for Q2 showed a strong 51% year-on-year growth, surpassing estimates by 18%. The company has consistently increased its EBITDA over the past three years, with a projected compound annual growth rate (CAGR) of 29% from FY22 to FY24.
Analysts have revised their estimates for FY25-27 EBITDA upward by 4-9%, expecting further margin improvements and a healthy average revenue per occupied bed (ARPOB) due to bed additions. The stock is currently trading at 26x and 21x EV/EBITDA for FY26E and FY27E, respectively, after adjusting for minority stakes and rental considerations.
Prabhudas Lilladher maintains a 'Buy' rating on the stock, with a revised target price of Rs 500 based on September 2026 EBITDA projections. Important factors to monitor include the use of proceeds, potential mergers with private equity players, and timely expansion efforts.