Jefferies has set a price target of ₹870 for Manipal Hospitals, indicating a 21% upside from its previous closing price of ₹718.40. The brokerage expects Manipal's revenue and EBITDA to grow at compound annual rates of 17% and 19%, respectively, between FY26 and FY29.
Manipal Health shares were trading 2% higher at ₹743.90 on the BSE this morning. Jefferies highlights Manipal as the third-largest hospital chain in India, with an owned bed capacity of 9,355. The company is the only private hospital chain with leadership in three of India's eight major metros. Over the past five years, Manipal has executed a ₹9,000 crore acquisition strategy, adding 5,548 licensed beds through major acquisitions including Columbia Asia and Vikram Hospitals in Bengaluru, AMRI, Medica Synergie, and Sahyadri Hospitals in Pune.
Sahyadri Hospitals, acquired in October 2025, is central to Jefferies' investment case. The hospital chain's occupancy increased to 62.6% in Q1 FY27, with average revenue per occupied bed rising by 15% to ₹44,800 a day. Sahyadri's revenue rose by 13% year-on-year and 12% sequentially to ₹3.32 billion, while EBITDA increased by 19% year-on-year and 61% sequentially to ₹580 million.
Manipal plans to add about 2,426 beds between FY26 and FY30, with 1,943 being greenfield additions. The new capacity will be concentrated in Karnataka and Maharashtra, with significant additions in Mumbai, Pune, Raipur, and Bengaluru. Jefferies expects these additions to lift revenue to ₹167 billion by fiscal 2029 from ₹103 billion in fiscal 2026.
Manipal's geographical diversification strategy includes expanding in Karnataka, Maharashtra, Goa, and East India. Jefferies anticipates Karnataka to benefit from premiumisation, East India from volume-led growth, and Maharashtra and Goa from higher occupancy at Sahyadri. The brokerage values Manipal at 29 times September 2028 EV/EBITDA, justifying the premium due to scale benefits and a 19% EBITDA CAGR.
Background
Manipal Hospitals has been on an acquisition spree, investing ₹9,000 crore over the past five years to expand its bed capacity and market presence. This strategy has positioned it as a leading player in the Indian healthcare sector, with significant growth potential.
Looking ahead, Manipal's focus on replicating its integration playbook across acquired assets will be crucial. The company's ability to improve Sahyadri's profitability and manage competition in Bengaluru will be key factors to watch.
