Broker’s Call: Manipal Health Enterprises (Buy)

Manipal Health Enterprises, India's largest private hospital network, has recently been endorsed by broker Barclays for a Buy rating, with a target price of ₹1,000. The broker's analysis is based on Manipal's robust earnings outlook, driven by significant growth prospects and strategic initiatives. With its installed bed capacity of 13,140, Manipal has doubled its bed count through acquisitions, particularly Sahyadri Hospitals, resulting in improved EBITDA margins and operational efficiency.

The network is also expanding its presence through the addition of 2,500 beds between FY27-30, targeting new markets. Furthermore, Manipal's balance sheet is strengthening, providing a solid foundation for future acquisitions. The broker expects revenue and EBITDA CAGRs to grow at 17.9 per cent and 19.3 per cent respectively over FY26-29.

Moreover, the company intends to repay ₹5,550 crore of debt using the proceeds from its IPO in Q2FY27, leading to a projected net debt/EBITDA ratio of 0.7x by FY27e. Barclays' confidence in Manipal's growth trajectory is underpinned by its strong EBITDA margins, which are expected to improve significantly following the acquisition of Sahyadri Hospitals.