Brokerage firm Prabhudas Lilladher has set a target price of Rs 2,350 for Narayana Hrudayalaya following strong second-quarter financial results. The outlook considers the company's aggressive plan to add 1,555 beds, balanced against potential execution risks and challenges in the UK market.
Narayana Hrudayalaya recently caught the attention of market analysts after reporting significant growth in its fiscal second quarter for 2027. Following these results, brokerage firm Prabhudas Lilladher released a report assigning a target price of Rs 2,350 per share for the hospital chain. This valuation is based on expectations of continued strength in the company’s domestic operations and its long-term infrastructure plans.
In its latest results announced on October 30, 2026, the company posted consolidated operating revenue of Rs 28,440 million, marking a 73% increase from the previous year. Operating profit, or EBITDA, grew by 42% to Rs 6,054 million. These figures demonstrate solid demand within the Indian healthcare market, which continues to be the primary engine for the company’s overall financial health.
A central part of the current outlook is the company's aggressive expansion strategy. Management has committed to adding approximately 1,555 beds over the next three to four years. These additions, which involve a mix of new facilities and expansions at existing sites, are focused on major urban hubs including Bengaluru, Kolkata, and Raipur. Analysts are evaluating this capital spending as a major driver for future revenue, provided the company can manage the construction and operational timelines effectively.
While the domestic growth story appears strong, the company’s international footprint shows a mixed picture. The operations in the Cayman Islands are showing signs of improvement, providing some balance to the portfolio. However, the UK market remains muted due to delays in contracting with the National Health Service, or NHS. Investors should monitor this situation, as persistent weakness in the UK could impact overall profitability.
Prabhudas Lilladher calculated its valuation using a method that assesses the India and international segments separately. They applied a 23x multiple to the operating profit of the India business and a 12x multiple to the international unit, based on projections for September 2028.
For investors, the primary area to watch is the execution of these ambitious expansion plans. Large-scale hospital projects often face risks related to construction delays, cost increases, and the time required to achieve high patient occupancy. Additionally, because the company relies on government healthcare scheme enrollments and specific regulatory environments, any shifts in policy or reimbursement could influence financial results. Tracking the progress of the planned bed additions and the recovery trajectory in the UK market will be important for understanding the company's future earnings potential.