Narayana Hrudayalaya (NARH IN) – Event Update – Expands global footprint via UK’s PPG acquisition – BUY
Published on 04 Nov 2025
Narayana Hrudayalaya (NARH IN) signed an agreement to acquire 100% stake in Practice Plus Group Hospitals Ltd (PPG Hospitals) in the UK, marking its second major international expansion after the Cayman Islands. This acquisition marks a significant milestone for NARH, as 50% of profitability is anticipated to come from international business (Cayman + UK operations).
We believe international business will achieve +15% EBITDA growth over FY25-28E as both Cayman new unit and PPG Hospitals have potential to scale up as synergies and scale efficiencies materialize. In India, NARH aims to drive growth over the next 2–3 years through debottlenecking, refurbishment, better pricing from government scheme patients, and optimizing bed mix.
Given its higher exposure to international business and limited bed addition in India over the next 2 years, we see NARH trading at discount to peers. At CMP, the stock is trading at 19.5x and 17x EV/EBITDA (adj for IND AS) on FY27E and FY28E, factoring the UK acquisition. We maintain ‘BUY’ rating with TP of Rs2,000/share, based on 25x EV/EBITDA for the India business, 15x EV/EBITDA for international operations, based on Sep’27E.
