Shares of Park Medi World Ltd continued to be under pressure in Tuesday’s trade even as a fresh broking report pointed to the long-term growth story of the hospital chain. It opened at Rs 291.90 and was trading at Rs 286.50, down 1.36% at 11:25 AM on July 14. The stock touched an intraday high of Rs 292 and a low of Rs 285, as against the previous close of Rs 290.45.
The price took a tumble even as Choice Institutional Equities, who have kept their ‘Buy’ call on the stock, gave a price target of Rs 350 per share, suggesting an upside of about 20.6 per cent from current levels.
Brokerage Highlights Growth Strategy
After a management meeting and visits to Park Medi World’s hospital facilities, Choice Institutional Equities said the company continues to expand its presence across North India through a cluster-based expansion model, targeting long-term capacity growth.
The report adds that management focuses on disciplined capital allocation, operational efficiency, and growth in underserved healthcare markets. The company also reiterated its long-term ambition to reach 10,000 hospital beds by FY33.
Gurugram Hospital To Expand Its Capacity
The report also cites the upcoming 100-bed Park Hospital Platinum in Gurugram among the key announcements. The facility will come up about 100 metres from the existing 225-bed Palam Vihar Hospital and is expected to be functional by November 2026.
The project entails a capital outlay of ~Rs 25 crore and is likely to relieve pressure on the existing Palam Vihar hospital, which operated at a near 86% occupancy in FY26, implying healthy patient demand in the region.
Once it is operational, Park Medi World in Gurugram is expected to have a combined capacity of 750 beds, further strengthening its position in one of North India’s most competitive healthcare markets.
Uttarakhand Expansion Through Medicity Hospital Purchase
The broking also highlighted the recent acquisition of 330-bed Medicity Hospital, Rudrapur, Uttarakhand for Rs 177 crore.
Management said it expects the new hospital to be operational by the end of next month and all 330 beds will be operational from day one, allowing the facility to be a contributor almost immediately.
For the first year of operations, the company is targeting revenue of around Rs 100 crore, EBITDA margin of nearly 20% and PAT margin of around 12%. Management expects revenue to grow to around Rs 140 crore in the second year, aided by higher occupancy, better revenue per occupied bed and an improved mix of super-speciality services.
Cluster Model Continues To Fuel Growth
The brokering-feel cluster-based operating model of Park Medi World continues to remain one of its biggest strengths.
Under this model, specialist doctors, advanced medical equipment, and operational resources are shared among nearby hospitals. This helps to improve utilisation levels, reduce recruitment challenges and improve overall operating efficiency. The report also notes that the company’s ownership of hospital assets, efficient bed mix and relatively low capital cost per bed support its strategy of providing affordable tertiary and quaternary healthcare while maintaining healthy profitability.
Capacity & Financial Outlook
Choice Institutional Equities expects total company bed capacity to be approximately 5,590 beds by March 2028, supported by continued acquisitions and expansion of existing facilities.
Moreover, the broker anticipates that the firm will show a strong financial performance in the ensuing years. They see revenues increasing from Rs 1,679 crore to Rs 3,945 crore between FY26 and FY29, and margins should be at an even 26.5%. The same period is also expected to see strong growth in profit after tax.
The stock traded lower Tuesday, but the latest interaction with management suggests the company remains focused on boosting capacity, improving operational efficiency, and entering new healthcare markets – all of which could support long-term growth, the broking said.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)
Priyanka Roshan is a business writer and assistant editor at the NewsX website who tracks everything from stock market swings and corporate earnings to personal finance trends and policy shifts. Known for turning fast-moving business developments into sharp, reader-friendly stories, she combines speed, accuracy, and a data-driven approach to break down complex financial news for everyday audiences.
With over 9.5 years of newsroom experience, Priyanka has worked with leading media organisations, including Moneycontrol, Times Now, and Ping Digital, covering diverse beats such as business, politics, technology, auto, travel, sports, and the world. From live breaking news desks to SEO-led digital storytelling, she specialises in creating engaging content that keeps readers informed without overwhelming them.
