Global Health Limited (MEDANTA.NS) fair value

ACCE thesis

Global Health Limited, listed in India as MEDANTA.NS, runs multi-specialty hospitals under the Medanta brand, with its flagship campus in Gurugram and a growing network of smaller city hospitals. Its edge is clinical reputation in cardiac, organ transplant and oncology care, which lets it charge premium prices and attract referrals from across North India and from international patients. Revenue growth of 26.5% is running well ahead of what the sector typically delivers, with the expansion of bed capacity and new hospital openings doing much of the work. The stock trades at 57.9 times trailing earnings but 35.7 times forward earnings, so the market is pricing in a sharp step-up in profit as the new beds mature and operating leverage kicks in. The 16.7% operating margin against a 52.8% gross margin is the number to check, since the gap between the two shows how much of each rupee of revenue is absorbed by doctor fees, staffing and overheads before it reaches profit.