Fortis Healthcare (FORH IN) – Event Update – Lingering legal overhang – BUY
Published on 07 Sep 2026
FORH reported hospital margin improvement by 530bps over FY23-FY26 to 22.2%, we see further scope for improvement aided by 1) improving case and payor mix, 2) cost rationalization initiatives and ramp-up of Manesar and Greater Noida unit, and 3) new brownfield bed additions. Additionally, we expect margin to expand further, driven by the recent acquisition of People Tree Hospital, Shrimann Hospital and the O&M agreement with Gleneagles. We expect FORH to clock 20% EBITDA CAGR ex ESOP over FY26-28E. At CMP, the stock is trading at 24.4x EV/EBITDA on FY28E, adjusted for Agilus stake and ESOP. Maintain ‘BUY’ rating with revised TP of INR 1,050/ share; valuing at 28x EV/EBITDA (30x earlier) for hospital segment on FY28E.
