{
  "id": 266403,
  "title": "Broker’s Call: Aster DM Healthcare (Buy)",
  "url": "https://urgent.news/2026/08/07/brokers-call-aster-dm-healthcare-buy",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-07T12:35:42.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/brokers-call-aster-dm-healthcare-buy/article71312975.ece"
  },
  "original_language": "en",
  "account": "Aster DM Healthcare's first quarter financials revealed a 28 per cent increase in EBITDA year on year, reaching ₹270 crore. This surpassed analysts' estimates by 8 per cent. The company credited this growth to strong performance across all business clusters. Notably, their newly operational greenfield unit in Kasargod became EBITDA breakeven in Q1, marking a significant improvement from a loss of ₹8 crore in Q4 FY26. The QCIL cluster, which was merged with Aster in Q2 FY27, experienced a 32 per cent growth in EBITDA. This merger solidified Aster's position as the third-largest healthcare chain in India, both in terms of revenue and bed capacity. Aster's consolidated revenue for the quarter rose 22 per cent to ₹1,310 crore, again surpassing estimates by 6 per cent. The company reported a 300 basis point increase in occupancy, now standing at 62 per cent. This growth was driven by higher volumes of inpatient services. Total patient volume surged 16 per cent to 1.03 million. Average length of stay (ALOS) improved by 4 per cent to 3 days. The company's net cash balance stood at ₹510 crore as of Q1 FY27. In the combined entity post merger, net debt was recorded at ₹1,160 crore. Despite these improvements, Aster remains optimistic about future prospects due to anticipated post-merger synergies, occupancy enhancements, and margin expansion. The company's FY27E and FY28E EBITDA forecasts have been revised upward by 3-5 per cent. Aster's analysts estimate the post-Ind As EBITDA to grow at a compound annual growth rate (CAGR) of over 24 per cent from FY26 to FY28E, reaching a projected ₹3,100 crore. Currently, the combined entity is trading at a valuation of 30x EV/EBITDA on FY28E (adjusting for the minority stake and rental expenses). Based on this evaluation, the analysts maintain a 'Buy' rating, estimating a target price (TP) of ₹920, which equates to a valuation of 32x EV/EBITDA for the combined entity on FY28E.",
  "summary": "Prabhudas Lilladhar",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}