Target: ₹1,100

CMP: ₹928.10

After the change in promoter ownership to IHH Healthcare in FY19, Fortis Healthcare (FORH) has undergone a structural transformation, from a stressed, governance challenged asset to a professionally managed, execution-led hospital platform. The transition was marked by balance sheet clean-up, exit of non-core assets and strengthening of governance practices.

Since then, FORH has delivered a steady improvement in operating performance, from sales/EBITDA of ₹45b/₹2b and a loss of ₹1.5b in FY18 to sales/EBITDA/PAT of ₹9,000 crore/₹2,050 crore/₹1,080 crore over FY26E.

During FY18-FY26, FORH has significantly increased its bed capacity and improved its operational efficiency, driving a 33 per cent CAGR in EBITDA.

We value FORH on the SoTP basis, valuing the hospital business at 30x 12M fwd EV/EBITDA and the diagnostics business at 23x 12M fwd EV/EBITDA, to arrive at a target price of ₹1,100. We have assigned EV/EBITDA multiple in line with peers (MAXH/APHS) to factor in the robust transformation in the existing business, a brownfield strategy of bed additions driving faster EBITDA break-even, and subsequently driving better return ratios.

We initiate coverage on FORH with a Buy rating.

Published on April 24, 2026