Buy Artemis Medicare Services; target of Rs 390: Anand Rathi

What happened

Anand Rathi maintained its Buy recommendation on Artemis Medicare Services and raised its target price to Rs 390. The report said Q2FY27 revenue and EBITDA increased year over year, supported by better inpatient volume, higher occupancy and improved revenue per occupied bed. Management said asset finalisation and a fund raise are expected.

Confirmed

Global impact / market context

Higher patient volumes, occupancy and revenue per occupied bed helped lift sales, while the Gurugram hospital posted record EBITDA despite a Raipur unit loss. If the planned fund raise and asset finalisation proceed, they could support expansion, but may also affect cash available and spending needs.

Analyst inference

The report’s recommendation rests on operating growth at Artemis, including stronger patient volumes and occupancy, which can increase hospital revenue and help cover fixed costs. However, the Raipur unit’s reported loss may offset some gains, while the planned fund raise and asset finalisation could shape future spending and funding needs.

Analyst inference

What to watch

1. Look for updates on the planned asset finalisation and fund raise; the article says management expects both, but gives no details about the assets or funding terms. Confirmed
2. Review future reports for patient volumes, occupancy and revenue per occupied bed, since the article identifies these as drivers of recent revenue growth and Gurugram performance. Analyst inference
3. Check whether Raipur continues to record losses, because losses at that unit could offset operating gains at the Gurugram hospital and weigh on overall results. Analyst inference

Evidence

• Original source link unavailable