Stories
Motilal Oswal Projects 46% Upside for Aster DM Healthcare in Bull Case Scenario
C
CNBC TV18•28-09-2026, 11:38
Motilal Oswal Projects 46% Upside for Aster DM Healthcare in Bull Case Scenario
- •Motilal Oswal initiated coverage on Aster DM Healthcare with a "buy" rating and a target price of ’910 per share, indicating a 20% upside in its base case.
- •The merger of Aster DM Healthcare and QCIL creates one of India's largest hospital platforms with 39 hospitals and 10,600 operational beds, with potential to scale beyond 15,000 beds by FY30.
- •Motilal Oswal projects Aster DM's revenue, EBITDA, and PAT to grow at a CAGR of 19.5%, 25%, and 33% respectively over FY26-29, reaching ’13,200 crore, ’3,070 crore, and ’1,650 crore.
- •In its bull case scenario, Motilal Oswal assumes a 12-month forward EBITDA of ’2,910 crore and a 30x EV/EBITDA multiple, implying a target price of ’1,110 per share, indicating a 46% upside.
- •Key risks include QCIL integration delays, expansion delays, and regulatory changes or price caps that could impact profitability.
Key Questions Answered
Motilal Oswal initiated coverage on Aster DM Quality Care with a buy rating and a base-case target price of ₹910 per share, indicating a 20% upside potential.
The Aster DM Healthcare-QCIL merger created a major platform encompassing 39 hospitals and approximately 10,600 operational beds across 28 cities, with capacity targeted to scale past 15,000 beds by financial year 2030.
Key risks include potential integration challenges and delayed synergy realization from the QCIL merger, expansion delays affecting returns on capital, and regulatory changes or price caps pressuring profitability.
