Global Health Management to meet with investors

GQG Partners, Oaktree Capital and Blackrock Financial would be among the investors, which would meet the Management of Global Health Medanta next week. Loomis Sayles, Blackrock Financial, Wellington Management, Allspring Global, Putnam Investments, Wellington Management and Redwood Investments will have one-to-one meeting on Monday in Boston, USA.

On Tuesday, the Global Health management will meet with Oaktree Capital, Baron Capital, GQG partners and State Street in New York. This would also be one-to-one meeting with investors, the company said on Friday.

GQG Partners shares were down 0.34 per cent on Friday at 584.90. At the end of March, Global Health has a public holding of 66.92 percent. The company had 47 foreign portfolio investors in Category I and two others in Category II. The investments included PLC - Healthcare Opportunities and Government Pension Fund Global.

Analysts note that Global Health's March quarter earnings were positively surprised, driven by better EBITDA margins and higher other income along with a lower tax rate.

We see new hospitals contribute 33 per cent to revenues in FY 23 vs 10 per cent in FY 19 The new hospitals have ramped-up exceptionally well, lending a strong support to overall earnings growth which we expect to sustain. It will continue to optically lower the overall ARPOB and occupancy level over the next two years as we see the addition of nearly 600 beds, said JM Financial.

This brokerage increased its valuation multiple on the stock from 19 times earlier this week to 20 times, given the robust cashflow, continuing earnings momentum and scope for potential inorganic acquisitions.

Despite slightly lower volumes in matured hospitals, Medanta delivered a largely in-line Ebitda in 4 QFY 23, led by strength in newer hospitals. A continued favorable payor mix supported by a sustained favorable performance in Lucknow and Patna.

She continues to surprise with her smile. We expect the firm to report a robust EBITDA CAGR of 18 per cent over FY 2023 - 26 E, driven by continued strength in Gurugram and Lucknow, along with increased traction in Patna. We retain ADD on Medanta, with a raised FV of Rs 620, said Kotak Institutional Equities.