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Strong Q4 Results Boost Global Health Outlook
The brokerage noted Global Health's strong finish to the fiscal year, with Q4FY26 Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) beating expectations by 6%. This contributed to a 13% year-on-year growth, largely due to contributions from its Lucknow and Patna facilities. The company's strategic expansion is also showing promise, as losses at the Noida unit decreased quarter-on-quarter while it ramps up operations.
Expansion Plans Drive Long-Term Growth
Prabhudas Lilladher projects Global Health will achieve a substantial 24% annual growth in EBITDA from FY26 to FY28. This optimistic forecast comes after addressing earlier challenges at the Lucknow unit and as the Noida facility is expected to contribute meaningfully from Q2FY27. Global Health, which currently has about 3,663 beds, plans to add another 3,190 beds over the next three to four years, significantly expanding its capacity and revenue potential.
Analyst Reaffirms 'Buy' With Rs 1450 Target
Based on this performance and outlook, Prabhudas Lilladher raised its EBITDA estimates for FY27 and FY28 by 6%. The brokerage maintained its 'BUY' recommendation, setting a new target price of Rs 1,450 per share. This valuation is based on a 27x Enterprise Value to EBITDA multiple for FY28 earnings.