Dr Agarwal shares jump 5.5%, MS & Jefferies lift target prices after Q1
Profit after tax surged 44.6% to ₹55 crore, outpacing revenue growth even as the company absorbed higher greenfield investments
Dr Agarwal's shares in the healthcare sector increased by 5.5% on Wednesday following the company's impressive first-quarter results for FY27. The stock's value on the NSE rose to ₹515.80, marking an intraday high of ₹520.90, surpassing the prior close of ₹493.50. The company's profit after tax surged 44.6% to ₹55 crore, outperforming revenue growth despite higher greenfield investments.
Revenue from operations expanded 26% year-over-year to ₹614 crore. EBITDA increased by 25.2% to ₹177 crore, maintaining a robust margin of 28.5%. This quarter also saw the largest-ever expansion of new eye care centers. Morgan Stanley upgraded its rating to 'overweight' and set a new target price of ₹576 from ₹555, praising the company's impressive growth, including a 26% YoY revenue increase and 16% same-store sales growth.
They anticipate normalization of same-store sales growth and highlight premiumization-led growth, untapped market opportunities, expansion potential, and improved return on capital employed. Jefferies also maintained an 'accumulate' rating and raised its target price to ₹600 from ₹510, commending the company's consistent performance in the June quarter and robust expansion across all regions.
They expect mid-teens volume growth and continued premiumization, with same-store sales growth remaining robust.
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