Aster DM Healthcare (ASTERDM IN)

Rating: BUY | CMP: Rs408 | TP: Rs515

April 2, 2024 Margins to scale up; re-rating candidate

Company Update Our ASTER DM Healthcare (ASTERDM) India EBITDA stands increased by 4-
5% for FY25 and FY26 as we factor in higher operating margins. This has been
☑ Change in Estimates | ☑ Target |  Reco aided by gross margin expansion, occupancy scale up and faster ramp up in
Change in Estimates its Whitefield new unit. ASTERDM India’s EBITDA increased sharply over last
Current Previous 3 years (30% CAGR over FY20-23) and growth momentum continued in FY24
FY25E FY26E FY25E FY26E with ~30% YoY growth. We estimate 29% pre IND AS EBITDA CAGR from India
Rating BUY BUY
Target Price 515 500 business over FY24-26E aided by scale up in margins, healthy ARPOB and
Sales (Rs. m) 1,67,020 1,82,179 1,66,809 1,81,365 bed additions.
% Chng. 0.1 0.4
EBITDA (Rs. m) 22,404 25,971 22,169 25,174
% Chng. 1.1 3.2 At current market price, adjusted for GCC and minority stake, the India
EPS (Rs.) 16.0 21.0 15.6 19.6
business is trading at 17x EV/EBITDA on FY26E respectively which is at 15-
% Chng. 2.6 6.9
40% discount to listed peers. We believe such steep discount is unwarranted
given similar growth profile. We maintain ‘BUY’ rating with revised TP of
Key Financials - Consolidated
Y/e Mar FY23 FY24E FY25E FY26E
Rs515 (earlier Rs. 500) valuing India hospital segment at 22x EV/EBITDA on
Sales (Rs. m) 1,19,329 1,52,375 1,67,020 1,82,179 FY26E EBITDA. Timely closure of GCC divestment and utilization of proceeds
EBITDA (Rs. m) 15,653 19,220 22,404 25,971 will be key monitorable in near term.
Margin (%) 13.1 12.6 13.4 14.3
PAT (Rs. m) 4,249 4,072 7,291 9,775
EPS (Rs.) 9.5 10.3 16.0 21.0  Margins to scale up: Currently company enjoys ~20% OPM in India hospital
Gr. (%) (21.4) 8.8 54.9 31.1 segment and has guided for 300-400bps margin improvement over next 2-3
DPS (Rs.) - 2.0 2.0 2.0
years. Key drivers will be bringing more efficiency in consumables, faster ramp
Yield (%) - 0.5 0.5 0.5
RoE (%) 10.1 8.9 14.5 16.9 up in Whitefield facility, occupancy scale up. Further ASTERDM intends to add
RoCE (%) 12.2 14.7 17.5 19.4 500 bed through brownfield expansion in FY25 which will be margin accretive.
EV/Sales (x) 1.9 1.5 1.3 1.2
EV/EBITDA (x) 14.2 11.7 9.9 8.4 Also losses from pharmacy and labs have come off from Rs280m to ~Rs160mn
PE (x) 43.0 39.5 25.5 19.5 in FY24. This should achieve break even in FY25 and start contributing from
P/BV (x) 4.6 4.3 3.8 3.3
FY26. Overall we see consolidated margins for India business to improve from
current level of 16% to 19.6% in FY26E.
Key Data ATRD.BO | ASTERDM IN
52-W High / Low Rs.496 / Rs.237  Faster ramp up in Whitefield unit: ASTERDM commercialize 50 bed (Block
Sensex / Nifty 74,015 / 22,462
A) women and child hospital in Whitefield Bangalore in 2021. Later, in Q4FY23,
Market Cap Rs.204bn/ $ 2,444m
Shares Outstanding 500m Phase 2 (Block B&C) of 300-bed Aster Whitefield Specialty Hospital got
3M Avg. Daily Value Rs.680.63m
operationalized with major focus on oncology. Of total 347 bed capacity, 252
are census beds of which 175 are operational currently with healthy ARPOB of
Shareholding Pattern (%)
Rs60k/day. Company managed to get good clinical talents which help them to
Promoter’s 41.88
Foreign 41.00 achieve faster ramp within 1 year of its operations. Company intends to add
Domestic Institution 7.15 another 159 beds (Block D) in FY25 where-in they will shift women and child
Public & Others 9.97
Promoter Pledge (Rs bn) 84.40 unit to block D and will have continuous land accommodating multi-specialty
hospital (Block A+B+C). Overall we see this facility contributing Rs1bn to total
Stock Performance (%) EBITDA by FY27E.
1M 6M 12M
Absolute (11.7) 24.4 69.5  India Expansion plan: ASTERDM plans to add additional 1,750 beds across
Relative (13.5) 10.7 32.8
Kerala and Karnataka regions over next 3-4 years through mix of owned,
leased and O&M model. Almost 60% of expansion will be coming through
Param Desai brownfield which should be margin accretive. ASTERDM will require +Rs12bn
[email protected] | 91-22-66322259
of capex to commercialize addition 1750 beds, which will be largely funded
Sanketa Kohale
through internal accruals.
[email protected] | 91-22-66322426

April 2, 2024 1
 Aster DM Healthcare

 GCC stake sale – Contours of the transaction: ASTERDM board has

approved 100% sale of its GCC business for equity value of $1.01bn and EV
of $1.3bn (Rs106bn; ex of lease). Out of total $1.01bn proceeds- receipts of
$99mn is subject to certain conditions ($70mn on achievement of certain
EBITDA by GCC in FY24). The sale transaction is expected to be completed
by Q4FY24/Q1FY25. Management cited 75% of total proceeds to be
distributed (Rs55-60bn; Rs110-120/share) as dividend and rest to be utilized
for inorganic initiatives and capex for India business.

 India Financials:

 Overall, we expect ASTERDM’s India revenues to increase ~15% CAGR

from FY24-26E; largely aided by occupancy scale up and 500 bed addition
through brownfield in FY25E.

 India ARPOB to remain healthy at 6-7% YoY growth on improved case

mix.

 Gross margins to expand +100bps bps over FY24-26E on account of

operational efficiencies resulting from consumables.

 We expect India EBITDA to grow at 27% CAGR over FY24-26E aided by

ramp up in occupancies, value accretive brownfield expansion of 500 beds
in FY25E and breakeven in ASTER Lab & wholesale pharmacy biz by
FY25E.

 PAT to reach at Rs. 5.5bn by FY26E; supported by increased other income

resulting from likely cash proceeds from GCC business stale sale.

ASTERDM Valuation summary Peer Valuations

Particulars FY26E (Rs mn) EV/EBITDA (x) Pre IND AS
Peer Hospital companies EBITDA CAGR
GCC Business – A* 87,800 FY25E FY26E (%) FY24-26E
India business Apollo Hospitals 27.5 23.3 33.5
Pre IND AS EBITDA 8,788 Aster DM Healthcare 21.8 17.1 29.3
Less minority- 10% 879 Fortis Healthcare 24.3 20.6 20.2
ASTER DM share 7,910 HCG 16.2 13.3 26.6
Target multiple (x) 22 KIMS 24.6 21.4 16.8
India EV- B 1,74,012 Max Healthcare Institute 34.4 26.8 24.9
Total EV - A + B 2,61,812 Narayana Hrudayalaya 21.1 17.7 15.5
Less Net Debt 6,000 Rainbow Childrens Medicare* 27.6 23.1 21.0
Derived Market cap (INR mn) 2,55,812 Global Health Ltd (Medanta)* 33.8 28.1 21.2
No. Of shares (mn) 500 Jupiter Life line hospitals 24.7 20.3 24.0
Target price (INR) 515 Source: Company, PL Note – Rainbow and Medanata are
Upside (%) 26 consensus nos
CMP 408
Source: Company, PL; *Note: we have assumed 90% of
proceeds (Rs82bn) to be received in cash + Rs14bn of net debt
which will go away post completion of stake sale.

April 2, 2024 2
 Aster DM Healthcare

Revenues to grow at ~15% CAGR over FY24-26E EBITDA to grow at 27% CAGR over FY24-26E

India Revenue YoY gr. (%) (RHS) India EBITDA (Rs mn) India Margins (%) (RHS)

60000 44.1 50.0 10000 25.0

19.6
50000 40.0 8000 17.7 20.0
15.2 16.0
40000 14.8
25.2 30.0
22.4 6000 15.0
30000
16.3
13.2 20.0 4000 10.0
20000
23830

42477

48093
29840

36512

10.0

3530

4530

5854

7537

9450
10000 2000 5.0
0 -
0 -
FY22 FY23 FY24E FY25E FY26E
FY22 FY23 FY24E FY25E FY26E

Source: Company, PL Source: Company, PL Note: EBITDA is post IND AS

Profit and Loss account - India business

Particular (INR mn) FY22 FY23 FY24E FY25E FY26E
Net sales 23,840 29,830 36,512 42,477 48,093
Growth (%) 44.1 25.1 22.4 16.3 13.2
Gross profit 17,180 22,040 27,347 32,070 36,551
Gross margin (%) 72.1 73.9 74.9 75.5 76.0
Doctor fees 4,990 6,470 7,958 9,152 10,250
% of sales 20.9 21.7 21.8 21.5 21.3
Other expense 4,210 5,230 6,098 6,978 7,355
% of sales 17.7 17.5 16.7 16.4 15.3
EBITDA 3,550 4,530 5,854 7,537 9,450
Margin (%) 14.9 15.2 16.0 17.7 19.6
Other income 190 380 300 880 1,100
Depreciation 1,720 1,940 2,173 2,346 2,534
Interest expense 700 870 1,100 850 700
PBT 1,320 2,100 2,881 5,221 7,316
Tax 300 320 375 783 1,097
Tax rate (%) 22.7 15.2 13.0 15.0 15.0
Share in associate 30 110 120 120 120
Minority interest 370 200 239 432 610
Adj. PAT 620 1,470 2,148 3,886 5,489
Exceptional itmes - - 50 - -
Reported PAT 620 1,470 2,098 3,886 5,489
EPS 1.2 2.9 4.2 7.8 11.0
Source: Company, PL

April 2, 2024 3
 Aster DM Healthcare

Steady occupancy despite expansion of beds ARPOB improved ~9% CAGR over FY20-24

Occupancy (%) ARPOB (Rs. per day)

80 45000
70 40000
60 35000
30000
50
25000
40
20000
30 15000

27700

30100

33500

36500

39250
20 10000
10
61

56

66

68

68
5000
0 0
FY20 FY21 FY22 FY23 9MFY24 FY20 FY21 FY22 FY23 9MFY24

Source: Company, PL Source: Company, PL

Kerala cluster dominates India business with healthy margins

Geographical Revenue Mix (%) for 9MFY24 Geographical EBITDA Mix (%) for 9MFY24
Andhra & Andhra &
Telangana Telangana
12% 6%

Karnataka &
Maharashtra
Karnataka & 31%
Maharashtra Kerala
31% 57%
Kerala
63%

Source: Company, PL

Kerala cluster revenues grew at ~25% CAGR over FY20-23 with margins above 20%

Revenues (Rs mn) EBITDA (Rs mn) Margins (%) (RHS)

18000
4000 21.1 21.3 25.0
16000
3500 19.3
14000 20.0
12000 3000
14.2 13.3
10000 2500 15.0
8000 2000
6000 1500 10.0
13180

16910

14890

4000 1000
8750

9350

1240

1240

2550

3560

3170

5.0
2000 500
0 0 -
FY20 FY21 FY22 FY23 9MFY24 FY20 FY21 FY22 FY23 9MFY24

Source: Company, PL

April 2, 2024 4
 Aster DM Healthcare

AP & Telangana cluster - Growth has been soft given most of units are smaller in size and under partnership

Revenues (Rs mn) EBITDA (Rs mn) Margins (%) (RHS)

4000 18.6
800 20.0
3500 16.1
700 15.0
3000
600 15.0
2500 10.7
500
2000 9.0
400 10.0
1500 300
1000 200 5.0
3140

2790

3700

3440

3070

450

690

310
470

330
500 100
0 0 -
FY20 FY21 FY22 FY23 9MFY24 FY20 FY21 FY22 FY23 9MFY24

Source: Company, PL

Karnataka & Maharashtra rev grew at ~23% CAGR with margin expansion of +600bps over FY20-23.

Revenues (Rs mn) EBITDA (Rs mn) Margins (%) (RHS)

9000 1800 25.0
8000 1600 19.4
7000 1400 20.0
15.7
6000 1200
5000 12.7 15.0
1000
4000 9.5
800 7.6 10.0
3000 600
2000
4420

4330

6550

8170

7930

400

1280

1540
5.0
830
420

330

1000 200
0 0 -
FY20 FY21 FY22 FY23 9MFY24 FY20 FY21 FY22 FY23 9MFY24

Source: Company, PL

Superior payor mix- Cash + Insurance constitute 93% (9MFY24)

ESI/ECHS/CGHS State/Central
Schemes Others
4% 1%
2%
MVT
5%
Corporate
3%

TPA's Walk In
27% 58%

Source: Company, PL Note: MVT- Medical value travel (international buisness)

April 2, 2024 5
 Aster DM Healthcare

Key tertiary care therapies contributes +50% (9MFY24)

Others Multi Speciality
13% 19%
Child and Adolscent
Health
6%

Women's Health
6%
Cardiac Sciences
13%
Orthopaedics
7%

Nephrology And
Urology Neuro Sciences
7% 11%
Oncology Gastroenterology and Integrated
9% Liv er Care
9%

Source: Company, PL

ASTER DM – Existing India Assets as of Q3FY24

Bed Operating
Kerala Cluster Location Commencement Ownership
Capacity beds

Aster MIMS Calicut Kozhikode 2013 696 490 Owned

MIMS Kottakkal Kottakkal 2013 340 263 Owned
Aster Medcity Kochi 2014 760 626 Owned
Aster MIMS Kannur Kannur 2019 312 249 Owned
Aster Mother Hospital Areekode 2022 140 101 O&M asset light
Aster PMF Kollam 2023 138 105 O&M asset light
Total beds in Kerala Cluster 2386 1834

Karnataka & Maharashtra Cluster

Aster Aadhar Hospital Kolhapur 2008 231 196 Owned

Aster CMI Bengaluru 2014 509 368 O&M asset light
Aster RV Bengaluru 2019 237 167 O&M asset light
Aster Whitefield Bengaluru 2021 347 119 Leased
Aster G Madegowda Hospital Mandya 2023 100 40 O&M asset light
Total beds in Karnataka &
1424 890
Maharashtra Cluster

AP & Telangana Cluster

Aster Prime, Ameerpet Hyderabad 2014 158 98 Leased
Dr. Ramesh Hospital Guntur 2016 350 225 Leased
Dr. Ramesh Hospital Vijayawada 2016 135 125 Leased
Dr. Ramesh Hospital Vijayawada 2016 54 47 Leased
Dr. Ramesh Sanghamitra Hospital Ongole 2018 150 130 Owned
Aster Narayanadri Tirupati 2023 150 123 O&M asset light
Aster Ramesh Adiran Vijayawada 2023 50 42 Leased
Total beds in AP & Telangana
1047 790
cluster

Total beds 4857 3514

Source: Company, PL

April 2, 2024 6
 Aster DM Healthcare

Addition of +1700 beds in India over FY24-27E

Expected
Planned
Hospital Names Location Completion Present Status Owned/ leased / O&M
Beds
Year
Aster Medcity (Expansion) Kochi, Kerala 100 FY 2025 Construction Owned
Aster MIMS Kannur (Expansion) Kannur, Kerala 100 FY 2025 Construction Owned
Aster PMF (Expansion) Kollam, Kerala 32 FY 2025 Construction O&M Asset Light
Aster Whitefield Hospital (Block D) Bengaluru, Karnataka 159 FY 2025 Construction Leased
Aster Ramesh Sanghamitra Ongole, Andhra
75 FY 2025 Construction Leased
(Expansion) Pradesh
Aster MIMS Calicut (Expansion) Calicut, Kerala 75 FY 2026 Design Leased
Aster KLE* Bengaluru, Karnataka 500 FY 2026 Design O&M
Aster MIMS Kasargod Kasargod, Kerala 264 FY 2026 Construction Leased
Aster Capital Hospital (Phase 1) Trivandrum, Kerala 454 FY 2027 Construction Owned
Total 1759

Source: Company, PL (Note: Management plans to add brownfield 400-500 beds at ASTER CMI by FY26-27 instead of ASTER KLE
in Bangalore)

April 2, 2024 7
 Aster DM Healthcare

Financials
Income Statement (Rs m) Balance Sheet Abstract (Rs m)
Y/e Mar FY23 FY24E FY25E FY26E Y/e Mar FY23 FY24E FY25E FY26E

Net Revenues 1,19,329 1,52,375 1,67,020 1,82,179 Non-Current Assets

YoY gr. (%) 16.4 27.7 9.6 9.1
Cost of Goods Sold 35,318 48,760 53,446 58,297 Gross Block 1,17,855 1,25,855 1,34,355 1,44,355
Gross Profit 84,011 1,03,615 1,13,573 1,23,882 Tangibles 1,17,855 1,25,855 1,34,355 1,44,355
Margin (%) 70.4 68.0 68.0 68.0 Intangibles - - - -
Employee Cost 39,652 41,238 42,888 44,603
Other Expenses 28,706 43,157 48,281 53,307 Acc: Dep / Amortization 42,370 51,455 61,129 71,724
Tangibles 42,370 51,455 61,129 71,724
EBITDA 15,653 19,220 22,404 25,971 Intangibles - - - -
YoY gr. (%) 5.5 22.8 16.6 15.9
Margin (%) 13.1 12.6 13.4 14.3 Net fixed assets 75,485 74,400 73,225 72,631
Tangibles 75,485 74,400 73,225 72,631
Depreciation and Amortization 7,804 9,086 9,674 10,594 Intangibles - - - -

EBIT 7,848 10,134 12,730 15,377 Capital Work In Progress 2,551 2,551 2,551 2,551
Margin (%) 6.6 6.7 7.6 8.4 Goodwill 15,278 15,278 15,278 15,278
Non-Current Investments 683 683 683 683
Net Interest 3,292 4,003 3,828 3,653 Net Deferred tax assets (1,925) (1,925) (1,925) (1,925)
Other Income 783 350 500 600 Other Non-Current Assets - - - -

Profit Before Tax 5,339 6,481 9,402 12,324 Current Assets

Margin (%) 4.5 4.3 5.6 6.8 Investments - - - -
Inventories 13,056 16,699 20,591 22,460
Total Tax 596 1,323 1,410 1,849 Trade receivables 23,363 31,310 34,319 37,434
Effective tax rate (%) 11.2 20.4 15.0 15.0 Cash & Bank Balance 4,286 1,380 3,200 6,388
Other Current Assets 10,322 10,838 11,380 11,949
Profit after tax 4,743 5,158 7,991 10,475 Total Assets 1,48,812 1,57,312 1,65,835 1,74,466
Minority interest 506 800 700 700
Share Profit from Associate 12 260 - - Equity
Equity Share Capital 4,995 4,995 4,995 4,995
Adjusted PAT 4,249 4,072 7,291 9,775 Other Equity 39,486 42,379 48,492 57,088
YoY gr. (%) (19.2) (4.2) 79.0 34.1 Total Networth 44,481 47,374 53,487 62,083
Margin (%) 3.6 2.7 4.4 5.4
Extra Ord. Income / (Exp) - - - - Non-Current Liabilities
Long Term borrowings 13,123 13,123 12,123 11,123
Reported PAT 4,249 4,072 7,291 9,775 Provisions - - - -
YoY gr. (%) (19.2) (4.2) 79.0 34.1 Other non-current liabilities - - - -
Margin (%) 3.6 2.7 4.4 5.4
Current Liabilities
Other Comprehensive Income - - - - ST Debt / Current of LT Debt 9,752 9,752 9,752 9,752
Total Comprehensive Income 4,249 4,072 7,291 9,775 Trade payables 29,878 35,485 38,895 39,930
Equity Shares O/s (m) 500 500 500 500 Other current liabilities 45,074 45,074 45,074 45,074
EPS (Rs) 9.5 10.3 16.0 21.0 Total Equity & Liabilities 1,48,812 1,57,312 1,65,835 1,74,466
Source: Company Data, PL Research Source: Company Data, PL Research

April 2, 2024 8
 Aster DM Healthcare

Cash Flow (Rs m) Key Financial Metrics

Y/e Mar FY23 FY24E FY25E FY26E Year
Y/e Mar FY23 FY24E FY25E FY26E

PBT 5,339 6,481 9,402 12,324 Per Share(Rs)

Add. Depreciation 7,804 9,086 9,674 10,594 EPS 9.5 10.3 16.0 21.0
Add. Interest 3,292 4,003 3,828 3,653 CEPS 24.1 26.3 34.0 40.8
Less Financial Other Income 783 350 500 600 BVPS 89.0 94.8 107.1 124.3
Add. Other 609 (1,158) (700) (700) FCF 19.7 4.4 15.7 18.1
Op. profit before WC changes 17,044 18,412 22,204 25,871 DPS - 2.0 2.0 2.0
Net Changes-WC 1,891 (6,885) (4,466) (5,003) Return Ratio(%)
Direct tax (596) (1,323) (1,410) (1,849) RoCE 12.2 14.7 17.5 19.4
Net cash from Op. activities 18,339 10,204 16,328 19,020 ROIC 5.4 6.5 7.8 9.1
Capital expenditures (9,784) (8,000) (8,500) (10,000) RoE 10.1 8.9 14.5 16.9
Interest / Dividend Income - - - - Balance Sheet
Others - - - - Net Debt : Equity (x) 0.4 0.5 0.3 0.2
Net Cash from Invt. activities (9,784) (8,000) (8,500) (10,000) Net Working Capital (Days) 20 30 35 40
Issue of share cap. / premium (1,408) - - - Valuation(x)
Debt changes (2,443) - (1,000) (1,000) PER 43.0 39.5 25.5 19.5
Dividend paid (273) (1,179) (1,179) (1,179) P/B 4.6 4.3 3.8 3.3
Interest paid (3,292) (4,003) (3,828) (3,653) P/CEPS 16.9 15.5 12.0 10.0
Others (650) 73 - - EV/EBITDA 14.2 11.7 9.9 8.4
Net cash from Fin. activities (8,066) (5,109) (6,007) (5,832) EV/Sales 1.9 1.5 1.3 1.2
Net change in cash 490 (2,905) 1,821 3,188 Dividend Yield (%) - 0.5 0.5 0.5
Free Cash Flow 9,861 2,204 7,828 9,020 Source: Company Data, PL Research
Source: Company Data, PL Research

Quarterly Financials (Rs m)

Key Operating Metrics
Y/e Mar Q4FY23 Q1FY24 Q2FY24 Q3FY24
Y/e Mar FY23 FY24E FY25E FY26E
Net Revenue 32,623 32,154 33,166 37,106
GCC hospitals 40,120 46,886 50,984 55,634
YoY gr. (%) 19.6 20.8 17.8 16.2
India hospitals 30,680 36,512 42,477 48,093
Raw Material Expenses 9,425 9,844 9,735 10,951
Sale of medicines 29,840 34,316 36,718 39,288
Gross Profit 23,198 22,309 23,431 26,155
Clinics 24,120 28,462 30,454 32,586
Margin (%) 71.1 69.4 70.6 70.5
Source: Company Data, PL Research
EBITDA 5,056 3,877 3,773 5,641
YoY gr. (%) 9.3 32.7 18.3 25.7
Margin (%) 15.5 12.1 11.4 15.2
Depreciation / Depletion 2,186 2,175 2,272 2,315
EBIT 2,870 1,703 1,501 3,326
Margin (%) 8.8 5.3 4.5 9.0
Net Interest 960 989 1,019 986
Other Income 140 92 86 80
Profit before Tax 2,051 806 568 2,419
Margin (%) 6.3 2.5 1.7 6.5
Total Tax 232 534 102 242
Effective tax rate (%) 11.3 66.3 17.9 10.0
Profit after Tax 1,819 272 466 2,177
Minority interest 118 150 155 300
Share Profit from Associates 7 (73) (73) (85)
Adjusted PAT 1,708 49 (308) 1,792
YoY gr. (%) (24.5) (92.9) (166.6) 28.6
Margin (%) 5.2 0.2 (0.9) 4.8
Extra Ord. Income / (Exp) - - - -
Reported PAT 1,708 49 (308) 1,792
YoY gr. (%) (24.5) (92.9) (166.6) 28.6
Margin (%) 5.2 0.2 (0.9) 4.8
Other Comprehensive Income - - - -
Total Comprehensive Income 1,708 49 (308) 1,792
Avg. Shares O/s (m) 500 500 500 500
EPS (Rs) 3.4 0.1 (0.6) 3.6
Source: Company Data, PL Research

April 2, 2024 9
 Aster DM Healthcare
Price Chart Recommendation History

(Rs)
No. Date Rating TP (Rs.) Share Price (Rs.)
500
1 12-Feb-24 BUY 500 440

409 2 08-Jan-24 BUY 430 417

3 29-Nov-23 BUY 430 395
318
4 07-Oct-23 BUY 345 327
226 5 15-Aug-23 BUY 345 307
6 06-Jul-23 BUY 335 311
135
Apr - 21

Sep - 21

Sep - 22

Aug - 23
Mar - 22

Mar - 23

Feb - 24
7 29-May-23 BUY 335 270
8 06-Apr-23 BUY 265 240

Analyst Coverage Universe

Sr. No. Company Name Rating TP (Rs) Share Price (Rs)
1 Apollo Hospitals Enterprise BUY 7,050 6,434
2 Aster DM Healthcare BUY 500 440
3 Aurobindo Pharma Accumulate 1,120 1,026
4 Cipla Accumulate 1,400 1,375
5 Divi's Laboratories Reduce 3,150 3,652
6 Dr. Reddy's Laboratories Reduce 5,650 5,841
7 Eris Lifesciences BUY 1,100 868
8 Fortis Healthcare BUY 780 444
9 Glenmark Pharmaceuticals Reduce 570 893
10 HealthCare Global Enterprises BUY 420 367
11 Indoco Remedies Accumulate 380 369
12 Ipca Laboratories Hold 1,060 1,152
13 J.B. Chemicals & Pharmaceuticals BUY 1,920 1,800
14 Jupiter Life Line Hospitals BUY 1,360 1,229
15 Krishna Institute of Medical Sciences BUY 2,200 2,078
16 Lupin Hold 1,600 1,606
17 Max Healthcare Institute BUY 925 799
18 Narayana Hrudayalaya BUY 1,435 1,365
19 Sun Pharmaceutical Industries BUY 1,640 1,415
20 Sunteck Realty BUY 565 452
21 Torrent Pharmaceuticals BUY 2,700 2,526
22 Zydus Lifesciences Accumulate 855 804

PL’s Recommendation Nomenclature (Absolute Performance)

Buy : > 15%
Accumulate : 5% to 15%
Hold : +5% to -5%
Reduce : -5% to -15%
Sell : < -15%
Not Rated (NR) : No specific call on the stock
Under Review (UR) : Rating likely to change shortly

April 2, 2024 10
 Aster DM Healthcare

ANALYST CERTIFICATION
(Indian Clients)
We/I, Mr. Param Desai- MBA Finance, Ms. Sanketa Kohale- MBA Finance Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views
expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or
indirectly related to the specific recommendation(s) or view(s) in this report.

(US Clients)
The research analysts, with respect to each issuer and its securities covered by them in this research report, certify that: All of the views expressed in this research report accurately
reflect his or her or their personal views about all of the issuers and their securities; and No part of his or her or their compensation was, is or will be directly related to the specific
recommendation or views expressed in this research report.

DISCLAIMER
Indian Clients
Prabhudas Lilladher Pvt. Ltd, Mumbai, India (hereinafter referred to as “PL”) is engaged in the business of Stock Broking, Portfolio Manager, Depository Participant and distribution for
third party financial products. PL is a subsidiary of Prabhudas Lilladher Advisory Services Pvt Ltd. which has its various subsidiaries engaged in business of commodity broking,
investment banking, financial services (margin funding) and distribution of third party financial/other products, details in respect of which are available at www.plindia.com.
This document has been prepared by the Research Division of PL and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported
or copied or made available to others without prior permission of PL. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security.
The information contained in this report has been obtained from sources that are considered to be reliable. However, PL has not independently verified the accuracy or completeness
of the same. Neither PL nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made
available or expressed herein or for any omission therein.
Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or
otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor.
Either PL or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions
of securities of companies referred to in this report and they may have used the research material prior to publication.
PL may from time to time solicit or perform investment banking or other services for any company mentioned in this document.
PL is a registered with SEBI under the SEBI (Research Analysts) Regulation, 2014 and having registration number INH000000271.
PL submits that no material disciplinary action has been taken on us by any Regulatory Authority impacting Equity Research Analysis activities.
PL or its research analysts or its associates or his relatives do not have any financial interest in the subject company.
PL or its research analysts or its associates or his relatives do not have actual/beneficial ownership of one per cent or more securities of the subject company at the end of the month
immediately preceding the date of publication of the research report.
PL or its research analysts or its associates or his relatives do not have any material conflict of interest at the time of publication of the research report.
PL or its associates might have received compensation from the subject company in the past twelve months.
PL or its associates might have managed or co-managed public offering of securities for the subject company in the past twelve months or mandated by the subject company for any
other assignment in the past twelve months.
PL or its associates might have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
PL or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject
company in the past twelve months
PL or its associates might have received any compensation or other benefits from the subject company or third party in connection with the research report.
PL encourages independence in research report preparation and strives to minimize conflict in preparation of research report. PL or its analysts did not receive any compensation or
other benefits from the subject Company or third party in connection with the preparation of the research report. PL or its Research Analysts do not have any material conflict of interest
at the time of publication of this report.
It is confirmed that Mr. Param Desai- MBA Finance, Ms. Sanketa Kohale- MBA Finance Research Analysts of this report have not received any compensation from the companies
mentioned in the report in the preceding twelve months
Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
The Research analysts for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its
or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.
The research analysts for this report has not served as an officer, director or employee of the subject company PL or its research analysts have not engaged in market making activity
for the subject company
Our sales people, traders, and other professionals or affiliates may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary
to the opinions expressed herein, and our proprietary trading and investing businesses may make investment decisions that are inconsistent with the recommendations expressed
herein. In reviewing these materials, you should be aware that any or all of the foregoing, among other things, may give rise to real or potential conflicts of interest.
PL and its associates, their directors and employees may (a) from time to time, have a long or short position in, and buy or sell the securities of the subject company or (b) be engaged
in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company or act as an
advisor or lender/borrower to the subject company or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.

US Clients
This research report is a product of Prabhudas Lilladher Pvt. Ltd., which is the employer of the research analyst(s) who has prepared the research report. The research analyst(s)
preparing the research report is/are resident outside the United States (U.S.) and are not associated persons of any U.S. regulated broker-dealer and therefore the analyst(s) is/are
not subject to supervision by a U.S. broker-dealer, and is/are not required to satisfy the regulatory licensing requirements of FINRA or required to otherwise comply with U.S. rules or
regulations regarding, among other things, communications with a subject company, public appearances and trading securities held by a research analyst account.
This report is intended for distribution by Prabhudas Lilladher Pvt. Ltd. only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the U.S. Securities and Exchange Act,
1934 (the Exchange Act) and interpretations thereof by U.S. Securities and Exchange Commission (SEC) in reliance on Rule 15a 6(a)(2). If the recipient of this report is not a Major
Institutional Investor as specified above, then it should not act upon this report and return the same to the sender. Further, this report may not be copied, duplicated and/or transmitted
onward to any U.S. person, which is not the Major Institutional Investor.
In reliance on the exemption from registration provided by Rule 15a-6 of the Exchange Act and interpretations thereof by the SEC in order to conduct certain business with Major
Institutional Investors, Prabhudas Lilladher Pvt. Ltd. has entered into an agreement with a U.S. registered broker-dealer, Marco Polo Securities Inc. ("Marco Polo").
Transactions in securities discussed in this research report should be effected through Marco Polo or another U.S. registered broker dealer.

Prabhudas Lilladher Pvt. Ltd.

3rd Floor, Sadhana House, 570, P. B. Marg, Worli, Mumbai-400 018, India | Tel: (91 22) 6632 2222 Fax: (91 22) 6632 2209
www.plindia.com

Amnish
Digitally signed by Amnish Aggarwal

April 2, 2024 DN: c=IN, st=Maharashtra,

2.5.4.20=21151ea12dd366d1ac370cb42343ee44b6e851c37bdbac5f86aa4ff3e6
948487, postalCode=400018, street=570,SADHNA HOUSE,PB
MARG,WORLI,Mumbai,Maharashtra-400018,
11
Aggarwal
pseudonym=5359cd84fad1bdb19c658b8fa14b58ef,
serialNumber=7a6f13691881d5a8af6353865a61b48b7040e72f4a1bf53182e36
8b3ca14a5e4, ou=NA, o=PRABHUDAS LILLADHER PRIVATE LIMITED,
cn=Amnish Aggarwal
Date: 2024.04.02 12:45:31 +05'30'