Mar'25 View on Krishna Institute of Medical Sciences Ltd

Krishna Medical Institution Ltd (KIMS) was Incorporated in the year 1973 and is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of patients treated and treatments offered. The company offers multidisciplinary healthcare services with primary, secondary, and tertiary care across 2-3 tier cities and an additional quaternary healthcare facility in tier-1 cities. After making high of 674 and low of 474 the stock is lying at 570 level and now looks to make a new high above 700 based on below positive data. • KIMS’ Q3FY25 overall sales/EBITDA grew at 27% yoy each. • ARPOB growth in Q3FY25 was robust at 25% yoy. • Well-positioned to become a prominent multi-specialty hospital chain across markets. • KIMS to eventually report an overall EBITDA CAGR of ~25% over FY24-27E. • Continued to deliver strong traction in ARPOB and occupancies in Q3FY25. • Due to losses at Nashik, write-offs & seasonal weakness, EBITDA margin fell 380 bps qoq. • We expect an improved volume performance in the key AP/Telangana clusters. • KIMS has embarked on a plan to increase its bed count by ~60% to ~7,800 by FY27E. • Planning to add ~3,000 beds in Kerala over the next five years. • Execution in this new cluster will remain a key monitorable. • Onboarding of a solid regional leadership team inspires confidence.