Park Medi World Shares Jump 7%; Check Details Here
Shares of Park Medi World Ltd surged nearly 7% during Friday’s trading session after brokerage firm Choice Institutional Equities reiterated its bullish view on the hospital chain, citing strong capacity expansion, disciplined capital allocation and its scalable cluster-based business model.
The stock climbed to an intraday high of ₹298.50, up 6.88% from its previous close of ₹279.30. The shares have traded between a 52-week high of ₹305 and a 52-week low of ₹138.10. At the current market levels, the company has a market capitalisation of around ₹12,820 crore.
Choice Institutional Equities sees 20% upside
Following a management interaction and facility visit, Choice Institutional Equities maintained its ‘BUY’ rating on Park Medi World with a target price of ₹350.
Based on the brokerage’s reference market price of around ₹290, the target indicates a potential upside of approximately 20.6%.
The brokerage believes Park Medi World is well positioned to benefit from rising healthcare demand in North India, supported by a combination of new hospital facilities, acquisitions and improving operational efficiencies.
Choice also highlighted the company’s long-term expansion strategy, with Park Medi World targeting 10,000 beds by FY33.
According to the brokerage, the company’s cluster-based approach could help it scale its hospital network while improving operational leverage and strengthening its presence across key healthcare markets.
Park Medi World expands into Uttarakhand
The positive brokerage outlook comes shortly after Park Medi World announced the acquisition of 100% of the outstanding shareholding of The Medicity Hospital in an all-cash transaction valued at ₹177 crore.
The acquisition marks Park Group’s entry into Uttarakhand and expands its presence to a sixth state.
The Medicity Hospital in Rudrapur is a 330-bed multi-super-speciality healthcare facility, giving Park Medi World an immediate foothold in the state’s growing healthcare market.
The transaction is also in line with the company’s strategy of expanding its hospital network through acquisitions alongside organic capacity additions.
Healthcare expansion remains a key growth driver
Park Medi World operates in the healthcare and hospital segment, providing multi-speciality medical services through its network of hospitals.
The company has been pursuing a growth strategy centred around capacity expansion, acquisitions, infrastructure development and integrated healthcare services.
With healthcare demand rising across India, particularly in underserved regions, the company’s expansion into new markets could provide additional avenues for revenue growth.
The recent Uttarakhand acquisition, coupled with the company’s broader capacity expansion plans, is expected to support its long-term ambition of building a 10,000-bed hospital network by FY33.
For investors, the key factors to track will include the integration of acquired hospitals, occupancy levels, operating margins, capital expenditure requirements and the pace at which the company adds new beds.
With Choice Institutional Equities retaining its ‘BUY’ call and assigning a target of ₹350, the brokerage sees further upside in Park Medi World despite the stock trading close to its 52-week high.
