Target: ₹325
CMP: ₹251.15
flagship Gurgaon hospital recorded the highest Average Revenue Per Occupied Bed (ARPOB) of ₹83,900 in Q1FY26, driven by advanced clinical programs such as robotic surgery and CyberKnife.
It currently operates over 700 beds, with plans to add 120 beds (about 17 per cent ) in the Gurgaon facility over three years, plus 300 beds in Raipur and around 600 in South Delhi, effectively more than doubling the total bed capacity by FY29 to around 1,700 beds.
By FY28E, total operational beds are expected to reach nearly 1,000 with an occupancy of about 65 per cent and ARPOB of ₹88,490.
The 600-bedded capacity would get support from the binding MoU with VIMHANS. With this MoU, Artemis marks its entry into mental health and expand neurocare, committing ₹6,000 crore over the next 2–3 years. Artemis de-risks growth with ₹330 crore IFC CCD funding, enabling rapid quaternary hospital expansion in NCR and Tier-2 cities, but this would dilute about 15 per cent EPS.
We expect the company to deliver significant Revenue/EBITDA/PAT CAGR of 26.1/30.3/30.9 per cent over FY25—28E.
We initiate coverage on Artemis with a Buy recommendation and target price of ₹325 by valuing the company on 18x EV/EBITDA on an Avg of FY27–28E. Artemis trades at PEG ratio of 1.07 as compared to the peer group, which trades in the range of at 2—4, implying strong upside for the company.