India's Krishna Institute gains as HSBC initiates at 'buy' amid higher earnings

Apollo Hospitals Enterprise

13/09/2024 06:55

** Shares of Krishna Institute of Medical Sciences  KRII.NS 
rise about 6% to 580 rupees apiece 
    ** Stock rises after HSBC initiates "buy" on the hospital
chains operator, seeing an upside of 25.3% over the next 12
months
    ** HSBC says earnings likely to double over fiscal year
2024-2027
    ** Says KRII's well-defined capex with plans to add 2,385
beds over FY 2025-2027, improving case mix of lucrative
specialities such as mothercare/childcare and oncology to
sustain earnings growth
    ** While ambitious capex plan to expand bed capacity raises
some margin concerns, HSBC remains positive on KRII's execution
record
    ** Also says valuations of KRII remain attractive to peers
such as Apollo Hospital  APLH.NS , Max Healthcare, a subsidiary
of Max Financial Services  MAXI.NS , and Global Health  GLOH.NS 
    ** KRII shares up 40% in 2024 so far 
    ** In September quarter alone, KRII is up 33.1%, on course
for best quarterly gains since listing in mid 2021 - Exchange
data

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))